Thread: RAN Decides
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Old 06-21-2007, 23:31 PM   #21 (permalink)
Galrahn
Defense Professional
 
Join Date: 04-14-06
Posts: 405
I think you are right and my numbers are off. I messed up, but after looking around I think I figured it out.

Quote:
The A$8 billion (US$6.7 billion) AWD program will see Navantia work with the AWD Alliance (Defence Materiel Organisation, shipbuilder ASC and Raytheon Australia) to deliver three AWDs to the Royal Australian Navy.
From here

It looks like the remaining money was for infrastructure upgrades and integration in Australia. At 6.7 billion (US) for 3, they are basically paying 2.23 billion (US) for each ship, which doesn't jive with a Navantia announcement today the AWD hulls will cost about ~1 Billion (US) each.

So if this is right, basically the ship hull costs ~1 billion (US), and the infrastructure and integration costs ~1.23 billion (US) per hull. At first that seemed like a lot to me, but it includes the weapons and systems so that makes more sense. Remember, the US Navy doesn't include weapons in the ship cost, they use a different budget for systems and weapons. This ~1.23 is for Standards, Tomahawks, etc.. for the MK41s plus AEGIS and other systems and integration. It makes more sense when you factor in weapons costs into the contract.

It looks like the 2 LHDs will cost around A3 billion together, with A500 million of that money being done in Australia to build the islands of both, and systems integrations for both.
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