Adam Ingram, a minister for the U.K. Ministry of Defence, said on Monday that the CAD system chosen to design the submarines was not up to scratch, after Parliament member Mike Hancock quizzed him over why there had been delays.
"The increase in costs and delay to the delivery of
BAE Systems, which is contracted to build the Astute-class nuclear submarines, renegotiated the contract in 2003 when it realized that the CAD system was not suitable for the job.
This is the second time the U.K. defense department has had to answer for overspending on this submarine project, after facing Parliament members on the House of Commons public-accounts committee last year.
A number of factors caused the cost of the project to rise from $4.49 billion (2.57 billion pounds) to $6.1 billion, according to the defense department. "The program ran into problems," a Ministry of Defence representative admitted. "That was because of design issues, poor management and the use of CAD. (We) and the contractor overestimated (computer-aided design) and underestimated the problems it would cause. We had to learn lessons from similar things in the U.S. on subs. We had to renegotiate the contract. Not all of it is down to CAD, but that was an element."
BAE said it will take no profit in 2006 for the Astute contract; the company is this year bidding for a contract to build a fourth submarine.
"There are no new delays," a BAE representative told Silicon.com. "We recognized the system should never have been taken on. But it was a large defense contract and a must-win."
Dan Ilett of Silicon.com reported from London.