Source · Select Committees · Public Accounts Committee
Recommendation 18
18
The Department told us that each plane currently costs approximately $100 million and that it...
Conclusion
The Department told us that each plane currently costs approximately $100 million and that it expected this price to fall by 13% over the next three tranches.46 Nevertheless, this basic purchase price is just one cost element, and other costs must be taken into the reckoning, including the UK’s original investment to be a Tier 1 partner with the US, and the costs of weapons integration, sustainment and the supporting infrastructure. The Department could only provide us with a broad breakdown of the estimated whole life cost of the Lightning II programme and asserted that it would be misleading to provide a specific per-aircraft cost. We remain concerned with the Department’s lack of clarity on these costs because it must find additional funding both to bridge the £7.9 billion funding- gap for the 48 aircraft it is committed to buying, and to purchase the additional jets it acknowledges it will require.47 Delays to the Crowsnest radar system
Government Response
Not Addressed
HM Government
Not Addressed
4.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2021 4.2 The department has arranged for a private briefing session on 20 January 2021 to discuss Lightning II related expenditure. To note: The briefing date has been agreed with the Committee, however, this does not meet the recommendation timeline (within one month). 4.3 The briefing will cover the Whole Life Costs (WLC) of the 48 F-35 aircraft that the department is currently committed to purchase and includes the current programme approval levels. The procurement strategy for Lightning II is one of incremental acquisition and was approved at Main Gate 2 in 2006. This strategy tied the UK to a through-life collaborative partnership within the Joint Strike Fighter Programme, using the governance and procurement processes set out in the Production, Sustainment and Follow-on Development memorandum of understanding. 4.4 The WLC model considers all the acquisition phases from Lightning inception to aircraft disposal and are based upon the current mandate for 48 F-35Bs with an out of service date of 2048. The costs do not include operating costs such as service delivered manpower, fuel and weapons expenditure that are covered under separate Top-Level Budgets.