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Procurement Strategies.


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After CougarDaddy posted the interesting news about the MoD buying the Singapore Technologies Bronco instead of the BAE Hagglunds Viking II,  [urlhttp://www.mod.uk/DefenceInternet/DefenceNews/EquipmentAndLogistics/TheWarthogIsOnItsWay.htm=](MoD release here)[/url] I came across this bit in another MoD release:

...."In May 2008 we announced the provisional selection of Piranha V, offered by General Dynamics (UK) Ltd, as the preferred design for the FRES Utility Vehicle. Following a period of intensive negotiations with General Dynamics to address a number of commercial issues, it became clear to both parties that it would not be possible to reach agreement on the commercial conditions required to enable further progress on the basis of the current procurement strategy. I have therefore decided that we should withdraw General Dynamics (UK)’s provisional preferred bidder status.

"Our examination of the equipment programme has, separately, considered the balance of investment and priority in the Army’s armoured vehicle programme. We have concluded that, in the context of current operations, and bearing in mind the considerable recent investment in protected mobility, the highest priority should now be accorded to delivering the Warrior Capability Sustainment Programme and the FRES Scout vehicle as quickly as possible. Against that background, we have decided to restructure the FRES programme, giving priority to FRES Scout over the FRES Utility Vehicle. Whilst this will mean a delay to the programme, we recognise the importance of the Utility Vehicle and are now looking at the best way to take this procurement forward. General Dynamics (UK) will have an opportunity to compete in any future Utility Vehicle competition.

The Brits had shortlisted the LAV-Piranha for the FRES programme but apparently GDLS-GDUK thought too highly of themselves for the MoD and the MoD has reconfigured the requirement and reopened the competition.

I wonder if, beyond the qualities of the Bronco, the MoD wasnt putting a shot across the bows of the entrenched NATO-US-UK industry and telling them that there were now other options available to the government.

If so, it wouldnt be a bad thing.