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The penny-wise pound-foolish Apache/JAGM saga continues.
The UK is now buying 3,000 JAGM missiles for $957.4M.
That equates to $319,000 per missile for a system already integrated onto our AH-64E's, that the UK has already trained on, which the UK has already paid for and received examples of for handling, from an Ally who is supposedly covering all extra costs of development, leaving little to no NRE expectations for the UK to bear.
Even if we go with the highest Brimstone 3 cost of £175,000 per missile which is meant to include Brimstone 3 R&D amortisation, even if we go with double the integration cost the UK was meant to "save" at £150M, the UK would have saved £110M by sticking with our own developed and proven system.
This does not even go into details such as re-investment in industry via procurement, tax recovery to Treasury or potential for exports (Poland's own AH-64E purchase is a vast missed opportunity). The UK already knows how to use and handle Brimstone eliminating most of the NRE with the system, and we have heard from defence ministers on the record in Parliament of the superior and battleproven hit rate of the Brimstone in active Operations compared to Hellfire based systems such as JAGM repeatedly over the years.
If we do take the lower of the purchase price per missile that is known for Brimstone and the £70M quoted as being "saved" by not integrating Brimstone on Apache, then for integration and purchase of 3,000 Brimstone on British AH-64E's we would expect to see a lower end cost, using DE&S own figures, of around £385M, saving almost £400M on this purchase compared to JAGM.
Even the £110M saving at the higher prices is desirable right now and would lead to further savings in future.
It is quite clear that the promised JAGM price reduction has not occurred.
BS was called at the time of the claims and these calls have clearly, demonstrably, been borne out.
This huge expense on an unproven foreign supplied missile with variations in reliability of supply, when a higher performing and perception-busting lower cost British missile exists and is in production, does not meet the claims at the time that JAGM would save the taxpayer money and should be both questioned and investigated.
@FTusa284 @JohnHealey_MP @nicholadrummond @Gabriel64869839 @thinkdefence @jedpc @JonHawkes275
Article on the purchase here:
The UK is now buying 3,000 JAGM missiles for $957.4M.
That equates to $319,000 per missile for a system already integrated onto our AH-64E's, that the UK has already trained on, which the UK has already paid for and received examples of for handling, from an Ally who is supposedly covering all extra costs of development, leaving little to no NRE expectations for the UK to bear.
Even if we go with the highest Brimstone 3 cost of £175,000 per missile which is meant to include Brimstone 3 R&D amortisation, even if we go with double the integration cost the UK was meant to "save" at £150M, the UK would have saved £110M by sticking with our own developed and proven system.
This does not even go into details such as re-investment in industry via procurement, tax recovery to Treasury or potential for exports (Poland's own AH-64E purchase is a vast missed opportunity). The UK already knows how to use and handle Brimstone eliminating most of the NRE with the system, and we have heard from defence ministers on the record in Parliament of the superior and battleproven hit rate of the Brimstone in active Operations compared to Hellfire based systems such as JAGM repeatedly over the years.
If we do take the lower of the purchase price per missile that is known for Brimstone and the £70M quoted as being "saved" by not integrating Brimstone on Apache, then for integration and purchase of 3,000 Brimstone on British AH-64E's we would expect to see a lower end cost, using DE&S own figures, of around £385M, saving almost £400M on this purchase compared to JAGM.
Even the £110M saving at the higher prices is desirable right now and would lead to further savings in future.
It is quite clear that the promised JAGM price reduction has not occurred.
BS was called at the time of the claims and these calls have clearly, demonstrably, been borne out.
This huge expense on an unproven foreign supplied missile with variations in reliability of supply, when a higher performing and perception-busting lower cost British missile exists and is in production, does not meet the claims at the time that JAGM would save the taxpayer money and should be both questioned and investigated.
@FTusa284 @JohnHealey_MP @nicholadrummond @Gabriel64869839 @thinkdefence @jedpc @JonHawkes275
Article on the purchase here:
Meanwhile the Army is at great pains to show us WOLFRAM and the Mounted Close Combat Overwatch (MCCO) money being spent on Brimstone 3 integration onto their ground vehicles. With so much effort in Brimstone on Ajax, Boxer and Coyote, it is reasonable to expect the AAC to follow.
With the first of the planned 16 Protectors arriving, the RAF already has faith in the Brimstone missile and has not signalled that they do not intend to use it.
As an aside, Protector aircraft cost "just" £15M a piece based on the last contract, again with NRE mostly paid for now. By saving money integrating Brimstone on AH-64E instead of JAGM, the RAF could have the funds to double the number of Protector aircraft and integrate more equipment onto them while still having cash to spare.
As an aside, Protector aircraft cost "just" £15M a piece based on the last contract, again with NRE mostly paid for now. By saving money integrating Brimstone on AH-64E instead of JAGM, the RAF could have the funds to double the number of Protector aircraft and integrate more equipment onto them while still having cash to spare.
For convenience, here's what Boeing's own engineers had to say about Brimstone performance when fired from an AH-64E:
https://twitter.com/TotherChris/status/1502172535240073219
An important point is 3,000 JAGM leaves the UK ~ $600M in the hole compared to a Brimstone order.
The promise is "JAGM Jam Tomorrow" with price drops.
Not only would JAGM have to fall below Brimstone's price, it has to drop to a point where future orders make up that $600M.
The promise is "JAGM Jam Tomorrow" with price drops.
Not only would JAGM have to fall below Brimstone's price, it has to drop to a point where future orders make up that $600M.
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