Really? Where exactly does it say so?
Are you suggesting the complete support package was dropped?
- study, design and construction of operations; support and training facilities; spare and repair parts; support and test equipment;
- publications and technical documentation; personnel training and training equipment; U.S. Government and contractor engineering, technical and logistics support services; and other related elements of logistical and program support.
- In addition, this case will provide overarching program office support for the SNEP II to include: U.S. Government and contractor engineering, technical and logistics support, and other related elements of program support to meet necessities for program execution.
What is says is "The estimated value of MDE is $4.3 billion. The total estimated cost is $11.25 billion."
MDE = Major Defence Equipment = Any item of Significant Military Equipment (SME) on the U.S. Munitions List having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million.
http://www.samm.dsca.mil/glossary/major-defense-equipment-mde
http://samm.dsca.mil/search/node/mde congressional notification threshold
This basically means of $11.25 billion "only" 4.3 billion is 'the real serious stuff' such as a frigate
Besides, if you look at the original announcement, have you noticed that the Saudi's get 5 of most key items, rather than 4 (i.e. they order 1 spare). For example: COMBATSS-21 Combat Management Systems, TRS-4D Radars, UPX-29 IFF, Compact Low Frequency Active Passive Variable Depth Sonar, AN/SWG-l (V) Harpoon Ship Command Launch Control System, MK-15 Mod 31 SeaRAM Close-In Weapon System (CIWS), MK-75 76mm OTO Melara Gun System.
There also is a list of items that aren't quantified:
- Selective Availability Anti-Spoofing Module (SAASM) Global Positioning System/Precise Positioning Service (GPS/PPS) navigation equipment
- Also included in this sale in support of the MMSC are: communications equipment employing Link 16 equipment; Fire Control System/Ceros 200 Sensor and Illuminator; 20mm Narwhal Gun; Nixie AN/SLQ-25A Surface Ship Torpedo Defense System; MK-32 Surface Vessel Torpedo Tubes; WBR-2000 Electronic Support Measure and Threat Warning System; Automatic Launch of Expendables (ALEX) Chaff and Decoy-Launching System; ARC-210 Radios; Combined Enterprise Regional Information Exchange System (CENTRIXS); Automated Digital Network System;
At least some items will see the pattern of ordering 5 items (4 on the ships, 1 spare) repeating.Since systems tend to contribute more to total cost than 'steel' does, that's almost like ordering a 5th ship.
Moreover, the deal also includes a great deal of ordnance, beyond the warload that these ships carry. E.g.:
Five-hundred thirty-two (532) tactical RIM-162 Evolved Sea Sparrow Missiles (ESSM) (one hundred twenty-eight (128) installed, twenty (20) test and training rounds, three hundred eighty-four (384) spares). This suggest each vessel will come with 32 ESSM (i.e. 8 Mk41 cells worth) as base load, and the remaining 384 missiles are counted as spares. We know these ships each have 2x8-cells worth of Mk 411 {after all it reads:
Eight (8) MK-41 Vertical Launch Systems (VLS) (two (2) eight-cell assemblies per ship for 16 cells per hull)}. So, apparently they don't get a full load of 2x8x4=64 per vessel on delivery. But even if you take that 4x64=256 missiles as base warload, there still are 20 test- and training round plus 256 spare rounds.
There will be four MK-15 Mod 31 SeaRAM Close-In Weapon System (CIWS) installed. With 11 rounds in the launcher, 4 ships take 44 missiles. But the order is one-hundred eighty-eight (188) RIM 116C Block II Rolling Airframe Missiles (RAM) (forty-four (44) installed, twelve (12) test and training rounds, one hundred thirty-two (132) spares).
Let's consider the value of these spares:
- Unit cost ESSM: US$1.447m (FY2014). So, x256 makes about US$370 million (and 384 would make US$556 million!).
- Unit cost US$998,000 (FY2014). So, x132 makes US$132million
So that's between US$502 million and US$688 million in spare missiles alone. Or US$ 125-172 million per ship.
And there is other "ordnance" in the deal.
If you factor that in, and work from that US$4.3 billion, you end up fairly close to the unit cost of the initial 2 LCSs (FY2010 budget documents revealed that the actual total costs of the two lead ships for each LCS class was $637 million for
Freedom and $704 million for
Independence.).
DSCA is pulling various deals together now
http://www.dsca.mil/news-media/news...ded-sales-saudi-arabia-foreign-military-sales
