England (Commonwealth Union) _ The next generation of auxiliary ships for dry stores in the Royal Navy will be built by a combined British/Spanish company, with the majority of the structural components coming from the UK, according to the government of UK Prime Minister Rishi Sunak. For three hulls, the total cost is roughly $1.9 billion.
Babcock and BAE Systems’ all-British offer is rejected by the decision. Despite the fact that the precise price offered in the unsuccessful bid has not been made public, industry sources predicted that the Babcock/BAE price would most certainly exceed the government’s budget. British unions and the opposition Labour party are outraged by the government’s choice of the Spanish/UK plan, which complies with the budget.
The agreement has a lengthy and contentious history. For up to three “Fleet Solid Support” ships to resupply the Royal Navy’s warships at sea, the UK Ministry of Defence published a contract tender in May 2018. Maritime unions and proponents of domestic shipbuilding criticized the MoD for inviting foreign shipbuilders to take part in the competition.
Defense shipbuilders from all over the world, including Navantia, Fincantieri, Japan Marine United, and DSME, expressed interest in the FSS project during its initial tender phase. The difference between domestic and international options is split in the contract’s winning bid. Navantia’s shipyard in Cadiz, Spain, will execute additional construction-related tasks (and around 40% of the contract value), while Harland & Wolff’s yards in Northern Ireland and England will construct the remainder of the blocks and modules. Harland & Wolff’s Belfast yard will handle the last-minute assembly for all three ships.
The UK has in the past permitted foreign yards to compete for and win contracts for the construction of defense ships. The penultimate auxiliary order for the UK fleet, the Tide-class oiler, was obtained in 2012 by the government-supported South Korean shipyard DSME. The Foreign Offer Represented “Best Value for Money for Taxpayers”, according to the MoD at the time, which also emphasized that DSME was the final contractor remaining in the bidding process. In all, DSME spent $540 million to deliver the class of oilers, which included four ships.
