UK Could Buy £3bn Armored Vehicle Fleet from Germany without a Tender

A German Army Boxer 8-wheeled armored vehicle. The British Army is considering a quick buy of this off-the-shelf armored vehicle to avoid having its modernization budget cut at some future time as sterling weakens further. (GE army photo)

LONDON --- The [British] army is poised to buy a fleet of armoured vehicles from Germany for £3 billion in a deal that risks costing Britain an extra £1 billion and hundreds of jobs, The Times has learnt.

Military officials believe that the collapse of the pound after Brexit will force the government to delay or cancel projects that are not already on the books.

As a result, the Ministry of Defence wants to fast-track the purchase of a fleet of up to 800 eight-wheeled infantry vehicles from Germany, according to defence industry sources.

The move would rule out a competitive tender for the contract involving at least four other potential bidders, including a British company. Industry insiders claim that the deal could be done for £1 billion less while creating hundreds of British jobs. “The whole idea of competition has been nixed in favour of a single-source buyer,” a source said.

It comes after the pound dropped to a 31-year low, having fallen 17 per cent against the dollar since the vote to leave the European Union in June. The weaker currency is expected to cost the MoD up to £2 billion over five years by inflating the price of equipment imported from overseas, according to McKinsey, the consultancy.

The revamp of the armoured fleet has been beset by problems since it was first attempted almost two decades ago. At least three attempts to hold a competitive tender during that time have cost the taxpayer almost £300 million without producing a single vehicle.

Troops continue to use vehicles that were first produced in the 1960s. This has rendered them vulnerable to countries such as Russia which have invested in tanks and personnel carriers, army sources say. (end of excerpt)

Click here for the full story, on The Times website.

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The Times report that the army is poised to buy a fleet of armoured vehicles from Germany.

An MOD Spokesperson said:

“While no decision has been taken on the acquisition strategy for MIV, our approach is competitive procurement wherever possible.”

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