Tata WhAP vs ICV Stryker: Harsher Conditions for the WhAP
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After I published this post, Rohit Vats pointed me to a US DOD document (FY 2020 Program Acquisition Costs by Weapon System) that said the per unit cost of the Stryker was $4.1 million. Since we don’t know specifications or other conditions associated with this cost, it seems unlikely that the Government of India will be offered those vehicles at this cost.
Rohit also thought that the 75% indigenous assumption about the WhAP might be too high if the turret is imported. So I reran the numbers with the following assumptions:
Initial per unit cost for Stryker = WhAP = $4.1 million.
This is a very harsh assumption for the WhAP, way beyond the worst-case scenario.
Initial indigenisation level for WhAP = 50%
Indigenous content at the component level for Stryker offsets = 50%
Summary
Even with harsher initial conditions for the WhAP, at the end of 10 years:
The WhAP program cost $2.26 billion less.
The average per unit cost of the WhAP was $1.61 million lower.
Actual government spending was $2.38 billion lower for the WhAP program.
Total domestic supply chain revenue was $3.45 billion higher for the WhAP program.
Numbers
View in landscape mode on mobile devices for proper formatting.
Tata WhAP Stryker Delta
Total Budget $4,634.47m $6,891.51m $2,257.03m
Average Per Unit Cost $3.31m $4.92m $1.61m
Total Units 1,400 1,400 0
Total Actual Spend $4,008.39m $6,389.70m $2,381.31m
Total Taxes $626.08m $501.80m -$124.27m
Total Flow to Budget $150.26m $120.43m -$29.83m
Total Flow to R&D $31.30m $25.09m -$6.21m
Total Domestic Revenue $6,121.74m $2,667.48m -$3,454.26m
Tata WhAP vs ICV Stryker: Harsher Conditions for the WhAP
Tata WhAP vs ICV Stryker: Harsher Conditions for the WhAP
Tata WhAP vs ICV Stryker: Harsher Conditions for the WhAP
After I published this post, Rohit Vats pointed me to a US DOD document (FY 2020 Program Acquisition Costs by Weapon System) that said the per unit cost of the Stryker was $4.1 million. Since we don’t know specifications or other conditions associated with this cost, it seems unlikely that the Government of India will be offered those vehicles at this cost.
Rohit also thought that the 75% indigenous assumption about the WhAP might be too high if the turret is imported. So I reran the numbers with the following assumptions:
Initial per unit cost for Stryker = WhAP = $4.1 million.
Initial indigenisation level for WhAP = 50%
Indigenous content at the component level for Stryker offsets = 50%
Summary
Even with harsher initial conditions for the WhAP, at the end of 10 years:
The WhAP program cost $2.26 billion less.
The average per unit cost of the WhAP was $1.61 million lower.
Actual government spending was $2.38 billion lower for the WhAP program.
Total domestic supply chain revenue was $3.45 billion higher for the WhAP program.
Numbers
View in landscape mode on mobile devices for proper formatting.