BAE Systems 15 yr deal to supply small arms ammunition

Discussion in 'Current Affairs, News and Analysis' started by ABrighter2006, Aug 21, 2008.

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  1. At a cost of 2bn over the coming 15 years, BAE has been awarded the contract to supply small arms and medium calibre munitions to BRITFOR.

    BBC Webpage: BAE in £2bn MoD ammunition deal

    Good news, or more problems in the making?
  2. What's the betting that in the very near future, the ammo becomes 400% more expensive to produce, and the cost must be passed to the customer?
  3. Hopefully the contract has been written to rule that out. However, this is the MoD we are talking about.....

    At least the stuff will be made in the UK with the wages going to British workers.
  4. Is this designed to help with the global shortage of some ammunition?
  5. Not really, but it should give some capacity to export.

    Current operations mean that a huge amount more ball is now being used than (say) 10 years ago and BAE did not really have the capacity to produce it.

    They weren't making any money on it either so things being what they are in UK defence procurement they have gone to the MoD and asked for a lot of money to build some new factories and acquire some new machinery, otherwise they won't bother making the stuff anymore.
  6. Got to be better than that Indian shite!

  7. in_the_cheapseats

    in_the_cheapseats LE Moderator

    Face it- there is noone else in the UK capable of meeting the demand. Saying that, I do hope MoD has for once got a proper contract.
  8. Work for BAE! That part of the business was losing money hand over fist due to the MoD contract!

    The new one is mutually beneficial, it allows the company to invest in the plant, which in turn reduces unit cost, the cost reduction means you guys get bullets and bombs cheaper, which either means carry more and get on auto, or at least knwo someone somewhere in the supply chain can get you what you need without resorting to translation! Although that Crewe accent is pretty sh@@e.

    What's the betting there is at least one AT thinking mmmm cushy number for me there!
  9. Well said Stilts. Does the new contract also enable BAE to "ramp up" production to respond to any further areas of operations that make demands on us?

    (hypothetical question, before the tin-foil hats come out) :D
  10. this should have done over 5 years ago! I have long felt that the lack of ammunition production capacity in this country was criminally negligent on the part of the government.
  11. That is precisely what it does. Just in case, you know.
  12. Biped

    Biped LE Book Reviewer

    Should be a very healthy contract, even without ongoing ops in which many, many MILLIONS of rounds are being fired each year.
  13. its just a pity they can't put a plant on the outskirts of Brighton and give the hippy's something to get really upset about :twisted:
    tested on the taliban not animals :twisted:
  14. As long as they keep producing those Green Sealable Ammo Bags.

    Mind you that is probably the most expensive part of the contract
  15. Aye, theyre more handy then the ammunition :lol: