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France, Italy and the UK are expected to initial a £1 billion ($1.6 billion) contract at the end of October, launching full-scale engineering development and initial production (FSED+IP) of the trinational Principal Anti-Air Missile System (PAAMS). The contract, to be let via the Paris PAAMS Project Office on behalf of the three governments, will become effective before year-end.

PAAMS is intended as the primary local area and point air-defence system for the French/Italian/UK Common New Generation Frigate (CNGF), due to enter service in 2004. The system is based on work previously developed under the Franco-Italian medium range future surface-to-air missile family (FSAF), merging the previously separate medium range SAMP/N and local area missile programmes.

Key components are the Aster 15 and 30 active radar-guided surface-to-air missiles; the alternative EMPAR G-band (France and Italy) and Sampson E/F-band (UK) multifunction radars; a Sylver 48-cell vertical launch system; a core command and control (C2) system, based on elements of the existing FSAF C2; and the $1.85 billion long range radar which will provide volume search for PAAMS as well as surface and air picture data for the CNGF combat system as a whole. The contract will be let to the nascent EUROPAAMS prime contracting and project management organisation. Its shareholders, Eurosam and UKAMS (which is now a wholly owned subsidiary of Matra BAe Dynamics), will subsequently take responsibility for contract execution for the respective Franco-Italian and UK PAAMS variants under a "twin track" approach.

A PAAMS memorandum of understanding was signed by the three partner nations in March 1996. The award of the FSED+IP contract has been delayed by contracting issues, divergence over detailed performance requirements concerning the UK's local area defence mission and price negotiations.

France and Italy concluded negotiations for their PAAMS variants in June. The final price negotiations for the UK version are expected to be concluded by this month, clearing the way for the FSED+IP contract to be endorsed at the end of October.

Source: Flight International