LONDON - The 1 billion pound ($1.59 billion) program to update the British Army's Warrior infantry fighting vehicle has been given the go-ahead by the government.
Prime Minister David Cameron's announcement that the Ministry of Defence will sign a contract with Lockheed Martin UK to upgrade the Warrior ends months of speculation over whether the program would proceed or be struck down by Britain's defense spending cuts.
The contract is expected to be signed by the end of the month.
Although given the go-ahead, the program is much delayed. A Lockheed spokesman said production will start in 2018, and full operational capability is expected in 2020. At one stage, the British Army wanted to have the updated Warrior operational by about 2012.
The number of vehicles to be updated has also slipped to about 380, and not all of those will receive the full upgrade package. Originally, 643 vehicles were to be included in the program, of which 449 would receive the full upgrade.
Lockheed was named as the only contractor remaining in negotiation with the MoD at the start of this year, after BAE Systems was knocked out of the running.
The Warrior Capability Sustainment Program will involve a raft of improvements, including fitting a new turret with a 40mm cannon supplied by CTAI, an Anglo-French subsidiary of BAE Systems and Nexter.
Other key improvements include a new open electronic architecture and better armor protection.
The MoD says the update could keep the vehicle in service until 2040 and beyond.
Lockheed's contract is valued at 642 million pounds. The remainder of the 1 billion pound cost of the program comprises government-furnished equipment, such as the new cannon, and government taxes.
Major suppliers include the Defence Support Group, Rheinmetall Defence, Curtiss-Wright, Thales UK and Meggitt.
The deal is the first major announcement since the appointment of Defence Secretary Phillip Hammond. He replaced Liam Fox earlier this month after Fox resigned in the face of controversy over his links with lobbyist and adviser Adam Werrity.
Fox's resignation held up the announcement of the deal.
The contract is expected to be signed by the end of the month.
Although given the go-ahead, the program is much delayed. A Lockheed spokesman said production will start in 2018, and full operational capability is expected in 2020. At one stage, the British Army wanted to have the updated Warrior operational by about 2012.
The number of vehicles to be updated has also slipped to about 380, and not all of those will receive the full upgrade package. Originally, 643 vehicles were to be included in the program, of which 449 would receive the full upgrade.
Lockheed was named as the only contractor remaining in negotiation with the MoD at the start of this year, after BAE Systems was knocked out of the running.
The Warrior Capability Sustainment Program will involve a raft of improvements, including fitting a new turret with a 40mm cannon supplied by CTAI, an Anglo-French subsidiary of BAE Systems and Nexter.
Other key improvements include a new open electronic architecture and better armor protection.
The MoD says the update could keep the vehicle in service until 2040 and beyond.
Lockheed's contract is valued at 642 million pounds. The remainder of the 1 billion pound cost of the program comprises government-furnished equipment, such as the new cannon, and government taxes.
Major suppliers include the Defence Support Group, Rheinmetall Defence, Curtiss-Wright, Thales UK and Meggitt.
The deal is the first major announcement since the appointment of Defence Secretary Phillip Hammond. He replaced Liam Fox earlier this month after Fox resigned in the face of controversy over his links with lobbyist and adviser Adam Werrity.
Fox's resignation held up the announcement of the deal.