In March 2008 the Ministry of Defence signed a private finance initiative (PFI) contract with AirTanker Ltd, for the Future Strategic Tank Aircraft (FSTA) to provide air-to-air refuelling and passenger transport services. The deal is broadest in scope and, at Ap10.5 billion over 27 years, largest signed than any other defence PFI contract to date. PFI works best where activities and demand are predictable as dealing with changes on such deals is expensive. This was clearly not the case here. For instance, the Department did not decide until 2006 that FSTA needed extra protection to be able to fly into high threat environments and just two years after the deal was signed, the forthcoming Strategic Defence Review is likely to change the demand. It is, as such, indicated that PFI is not a suitable procurement route for such important military capabilities. This report examines why PFI was used; shortcomings in the procurement process, availability of cost data, how the deal was managed and risks in the transition from the current fleetsThis Future Strategic Tanker Aircraft (FSTA) contract will be based around 14 Airbus A330-200 aircraft and will replace the ... Crewing services 14 Sponsored Reserve pilots able to operate on military and civilian flights; 48 qualified cabin crew.
|Title||:||Delivering multi-role tanker aircraft capability|
|Author||:||Great Britain: Parliament: House of Commons: Committee of Public Accounts|
|Publisher||:||The Stationery Office - 2010-09-16|