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<p>The contract let is in accordance with the Armoured Fighting Vehicle Sector Strategy,
announced by the Ministry of Defence (MOD) on 23 June 2009. The strategy made clear
that it is not necessary to retain industrial capabilities in the UK in order to achieve
appropriate operational sovereignty. The strategy was intended to make greater use
of the global market, particularly within the EU and NATO. This remains the case for
Scout Specialist Vehicle. General Dynamics United Kingdom was selected on the basis
of the best value for money for the MOD and has decided to use the production facilities
at General Dynamics European Land Systems in Spain. Neither of the final competition
bidders planned to assemble the entire vehicle in the UK; both planned to make best
use of their established international facilities and supply chains. Following production
of the first 100 vehicles, an option does exist to transfer vehicle assembly to the
UK subject to an economic case being accepted.</p>
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