Changing tack for just a short while
read a magazine yesterday, the SEA1180 project is estimated to cost between 5 billion and 10 billion in capital costs for 20 boats. Thats a unit cost of 250 million to 500 million dollars each. Knowing the Navy (from afar) it will definately be 500 million each (something I predicted on here many months ago)
It seems the Navy just does not want small cheap simple patrol boats, maybe not sexy and high tech enough. A 500t to 600t patrol boat could easily be built for 50 million dollars unit cost. Seems they dont want a mix of high teir and low teir. They want to send a 500 million dollar boat after an illegal fishing vessel, or a drug smuggler or a asylum seeker vessel (yeah good logic in that)
So they want 20 units at $500 mil each for $10 billion
they could have 16 x 500 million plus 12 units at $50 million total cost $8.6 billion
So they save 1.4 billion dollars in capital costs and get 8 extra hulls.
The Navy wants flash, high tech boats. Seems they are not keen on doing mundane tasks as mentioned above, guess not important enough for them. Anyone would think they had so much money to spare. Guess it does not come out of their salary. More hulls can be in more places at any one time. God forbid a terrorist blows up an oilrig or deliberatly introduce foot and mouth disease and the 500 million dollar boat was 500 miles away,,, then the Navy says,,, hey maybe we need a large number of small cheap boats for routine, mundane patrols. Happened to India,,, guess it cant happen to us because the Navy knows best
Peter A,
It's interesting to note that the Defence Capability Plans (DCP) prior to the 2012 DCP had a budget estimate of $3b-$5b (stating it would be the higher end of the band, eg, closer to $5b) as the expenditure range for SEA 1180.
And yes the current 2012 DCP, changed those figure to $5b-$10b as the range for this project, (stating that it would be the "middle" of the band), eg, say $7.5b, (will it change again, up or down, in the next DCP? Who knows!).
So yes, it is a significant increase in the "allowance" for the total project cost.
But as I understand how these things work, the project cost is not just the actual cost per ship (eg, total cost divided by X number of ships to give a per ship cost), but also it includes the total project cost, ships, basing upgrades, spares, support, etc, etc.
Maybe one of the Def Pro's or Senior Members could explain the % split between the actual equipment and the total project cost on this or any other project?
If you look back at some recent posts regarding SEA 1180, the Spanish and Dutch ships of approx the size, eg, 2000t, and capability are costed, according to Wiki, at around the $150m-$160m each mark.
So 20 of those would be $3b-3.2b, give or take, ok yes add inflation, add the premimum of building them in Australia, would they end up at $500m each? Don't think so.
Prior to the Armidale boats, the Navy wanted the larger OPV's when we were looking to do a deal with Malaysia.
But getting back to your point of more smaller, less "flash" ships, I think the problem lies more with the current Government than anything else.
If we weren't being overrun with the flood of illegals maybe the Navy would be doing the job it should be doing.
My solution? Hopefully the next Government can slow or stem the tide of illegals, over time, allowing the Navy to do the jobs they should be doing.
And yes, maybe Customs should have an enlarged fleet of "2nd tier" boats to do more of the mundane work that you mentioned.
I wouldn't blame the Navy, personally, I'd blame the Government!