Source: FT
By Sylvia Pfeifer
British shipyards are preparing to submit initial bids to build five cut-price frigates for the Royal Navy despite uncertainty over the programme’s budget and proposed delivery date.
The competition, which is being run for the second time after the first tendering was unexpectedly cancelled, comes amid wider industry unease about the continuing delay to the Ministry of Defence’s review of its defence capabilities, as well as concerns over the department’s budget shortfall and what this could mean for a range of equipment contracts.
At least two industry consortiums are understood to be ready to take part in the frigate bidding. Babcock International and Thales, the defence companies, are expected to bid using a design based on one currently in use by the Danish navy. Another includes BAE Systems, Britain’s largest defence contractor, but will be led by Cammell Laird. A third consortium, led by Atlas Elektronik UK, could also decide to take part.
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