Tuesday 28 July 2009

Sir Nick raises concerns about BAE systems’ US rival

Local MP, Sir Nicholas Winterton has welcomed the response to a recent Written Parliamentary Question which he tabled seeking clarification on the background of the Ministry of Defence’s Nimrod MRA4 production contract, which the Macclesfield MP hopes will be placed with BAE Systems as a priority in order to underpin the viability of the BAE System’s site at Woodford for the foreseeable future. The Helix project could be a bonus for the company and workforce if they are successful in gaining this business.

In his question, the Macclesfield MP raised the circumstances surrounding BAE Systems’ rival firm in the United States L-3 Communications Corporation, involved in the rival Boeing Rivet Joint aircraft bid, which is facing legal proceedings following an investigation by the authorities into its business operating practices.

In his Written Parliamentary Question to the Ministry of Defence, Sir Nicholas Winterton DL MP asked:

“What reports he has received of the outcome of legal proceedings in the United States against L-3 Communications Corporation; if he will assess the effect on his Department's policies on (a) security and (b) ethical procurement of its contract with L-3 Communications Corporation to examine the replacement of the Nimrod R-1 fleet; and if he will make a statement.”


The Parliamentary Under-Secretary of State for Defence, Quentin Davies MP responded:

“The Ministry of Defence is aware of the legal proceedings in the USA involving L-3 Communications, with whom MOD has a number of contracts.

“We have not yet made a final decision on the solution for sustaining the Airborne Signals Intelligence Capability, currently provided by Nimrod R-1.

“All major equipment procurements are subject to MOD’s assurance processes, which include an assessment of the suitability of prospective contractors before any commitments are entered into,” concluded the Defence Procurement Minister.


Sir Nicholas Winterton MP welcomed the Minister’s fairly positive response. Approximately £400mllion had been set aside for the Helix Programme and the debate has centred on two options, namely, revamp and commission the MRA4 platform or the US Boeing Rivet Joint aircraft. The BAE Systems Woodford plant would benefit from a decision to revamp and use the MRA4 platform and the production activity would be likely to extend to 2012, safeguarding some 700 manufacturing jobs at the BAE Systems Woodford site. A further 300 or so jobs associated with production will also be secured at the other BAE Systems’ sites.

The Ministry of Defence and the Defence Procurement Agency have considered the suitability, risks and costs involved in using the Nimrod MRA4 platform or the Rivet Joint aircraft for the Helix Project. The “command and control” element of competing aircraft will have a bearing on the Ministry of Defence’s final decision – the Boeing Rivet Joint aircraft is comprised of a system inherently compatible with that used by the United States military.