General Dynamics Electric Boat
By 2002 both BAE and the MOD recognised they had underestimated the technical challenges and costs of the programme. In August 2002 the programme was estimated to be over three years late and hundreds of millions of pounds over budget. BAE Systems issued a profit warning on 11 December 2002 as a result of the cost overruns and delays. BAE Systems and the MOD subsequently renegotiated the contract, with an understanding that the MOD had to share some of the financial risks. In December 2003 the contract modifications were signed, with the MOD agreeing to add another £430 million to the programme and BAE Systems assuming £250 million of the cost overruns. The MOD also enlisted the advice and expertise of General Dynamics Electric Boat through a U.S. Navy contract. Eventually, a General Dynamics Electric Boat employee became the Astute Project Director at Barrow.