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MOD Government Major Project Portfolio data, September 2013 (CSV)

Updated 23 May 2014
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Project name Spearfish Upgrade (SFU) Programme CHINOOK (incl Project Julius) Queen Elizabeth Programme Core Production Capability Complex Weapons End Crypto Units (ECU) Joint Combat Aircraft (Lightning) Maritime Sustainment Programme Mounted Close Combat Merlin Programme Nuclear Warhead Capability Sustainment Programme Puma Helicopter Life Extension Programme CROWSNEST programme A400M Successor SSBN The Material Strategy Type 26 Global Combat Ship (T26 GCS) Type 45 Destroyers Wildcat WATCHKEEPER Typhoon Airseeker Astute Boats 1-7 Whole Fleet Management Corporate Services Systems Convergence Programme Carrier Enabled Power Projection (CEPP) Corporate Services Transformation Programme Defence Core Network Services Defence Information Infrastructure Defence Infrastructure Transformation Programme Defence Reform Programme Future Reserves 2020 Logistics Commodities Services Transformation New Employment Model Next Generation Estates Contracts Submarine Enterprise Performance Programme Army Basing Programme Army 2020 MARSHALL BORONA
Department MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD MOD
MPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) Exempt under Section 43(2) of the Freedom of Information Act (2000) Amber Red Green Amber Exempt under Section 26 of the Freedom of Information Act (2000) Amber Green Amber/Green Amber/Green Exempt under Section 24 of the Freedom of Information Act (2000) Amber/Green Exempt under Section 43 of the Freedom of Information Act (2000) Amber/Green Amber/Green Amber Exempt under Section 43 of the Freedom of Information Act (2000) Green Amber/Red Amber/Red Amber/Green Amber Amber Amber Amber Amber/Red Amber/Green Amber/Red Amber/Red Amber Amber/Green Amber/Red Exempt under Section 43 of the Freedom of Information Act (2000) Amber/Green Amber Amber Amber/Green Amber Exempt under Section 43 of the Freedom of Information Act (2000) Amber
Description / Aims SFU Project has 4 key outputs: 1. Single Fuel – Create a single fuel weapon to replace the current bi-propellant system; 2. Insensitive Munition (IM) Warhead. Replacement of the current warhead with an IM warhead before the existing warheads start to reach their end of life; 3. Digital Weapon – Digitisation of the weapon to deliver the software integrity improvements necessary to comply with the modern standard for systematic safety integrity; 4. Fibre Optic Guide-fibre – The replacement guidance link will remove the communication delays between the platform and the weapon, thereby enabling safety and capability improvements and replacing the existing Copper/Cadmium (Cu/Cd) wire. The Chinook is the primary heavy-lift support helicopter within Defence. The Chinook is a key component of Future Force 2020; it supports the rapid deployment, in-theatre movement; insertion, re-supply and extraction of Joint Forces along with their equipment. The UK currently operates a fleet of 46 aircraft - 21 Mk2/2A, 8 Mk3 and 17 Mk4. The Chinook Programme includes a project to upgrade the fleet with a digital cockpit (Project JULIUS); and a project to purchase 14 additional aircraft (Project New Buy). The Programme will deliver 2 x Queen Elizabeth Class (QEC) aircraft carriers, initially capable of operating Lightning II and Merlin aircraft, as key elements of the Carrier Enabled Power Projection Programme (CEPP). HMS Queen Elizabeth (ISD December 2017) and HMS Prince of Wales (ISD March 2020) will be delivered with the flexibility to operate a broader range of aircraft types in the widest range of roles in the future. The phased regeneration of the current nuclear core production facilities on the Rolls-Royce (RR) site at Raynesway in Derby, the sustainment of the Core Production Capability (CPC) and the production, development and manufacture of the nuclear reactor cores to meet future technical specifications. The programme approval is until 31 March 2023. The main aim is to realise an improved, affordable and dynamically adaptable military Complex Weapons (CW) capability which protects sovereignty and assures Operational Advantage. The pipeline provides a new way of working in terms of programmatic approach to acquisition which will enable reuse, commonality and a subsequent reduction in costs. To support the Department's information assurance capability. The intent of the JCA (Lightning) programme is to deliver the Lockheed Martin F-35B Joint Strike Fighter (JSF) to the frontline by 2018 (Initial Operational Capability) and to contribute to the UK’s Carrier Strike capability from 2020 (Initial Operational Capability (Maritime)). Lightning will contribute to the Responsive and Adaptive Force and will achieve Full Operational Capability by 2023. The Military Afloat Reach and Sustainability (MARS) Tankers will replace the current single hulled tankers operated by the Royal Fleet Auxiliary which are no longer fully compliant with international maritime legislation, with an efficient and cost effective solution providing support for the sustainment of Future Force 2020. These ships will provide valuable bulk fuels capability in support of the Royal Navy and forces ashore, including the new QEC Class Aircraft Carriers and on operations as varied as Littoral Manoeuvre, constabulary and humanitarian relief, through to the 2040s. Four Tide Class ships (RFA TIDESPRING, RFA TIDERACE, RFA TIDESURGE, RFA TIDEFORCE) have been ordered from DSME South Korea, to a basic design by UK company BMT Group. Once built the ships will be made ready in the UK for operational deployment during a period of customisation and trials before entering service. The aim of the Mounted Close Combat (MCC) is to deliver appropriate, integrated capability in order for the User to generate and sustain MCC capability for operations within allocated resources, primarily in the 2025 timeframe. The Programme now only includes the four major projects which significant funding has been apportioned; The scope is: a. Armoured Cavalry Implementation: Consists of the Specialist Vehicle (SV) Project (principally the Scout vehicle) to deliver the new Armoured Cavalry and Close Recce capability, to equip the current Brigade Recce Regiments and the Close Recce Platoons/Troops and replace the obsolete Combat Vehicle Reconnaissance (Tracked) (CVR(T)) fleet. b. Armoured Infantry (AI): Consists of the WCSP, incl ABSV, and WCSP Trg solution projects, to improve the Warrior capability to create an upgraded and fully integrated AI capability. c. Armoured Type 56: Consists of the CR2 Life Extension Programme and its training aides to provide the Armoured capability out to 2035. d. Mechanised Infantry: The capability is currently provided by the COUGAR fleet but will be equipped through the Utility Vehicle project to ensure the protected movement and manoeuvre of infantry and associated Combat Support users on the future battlefield. The Merlin Capability Sustainment Programme (MCSP) will update 30 Merlin Mk1 aircraft to overcome existing and forecast obsolescence within the Weapon Systems Avionics to ensure sustainment of the required capability until the planned Out of Service date (2029). The converted aircraft will be known as Merlin Mk 2. The Programme will also update, as necessary, the support products and the full Merlin Training Facility at RNAS Culdrose. 1. To deliver and sustain the capability to underwrite the UK stockpile now and in the future including transition to Mk4A and to have the capability required for a future warhead if required. 2. To develop and deliver essential science, technology and production capabilities and critical skills to enable AWE to operate, maintain and certify the safety and performance of the Trident Holbrook warhead. 3. To develop and deliver the UK stockpile to the Mk4A warhead (production, skills, science) approved design. 4. To deliver facilities, skills, production and science capabilities required to maintain the current warheads and support a possible future warhead. 5. To deliver the new hydrodynamics facility. The Puma Life Extension Programme makes major modifications to the existing fleet of RAF Puma helicopters to install a glass cockpit, modern avionics (including a digital automatic flight control system) and new engines. These upgrades will address obsolescence and safety issues, deliver a step change in performance (particularly in hot and high environments) and ensure the aircraft (which will subsequently be known as the Puma Mk2) can continue to contribute to the required Battlefield Support Helicopter capability until its Out of Service Date in 2025. The CROWSNEST project will replace the capability currently provided by the Sea King Mk7 Airborne Surveillance and Control (SKASaC) aircraft. The primary purpose of this capability is to provide Force Protection for Maritime Task Groups and their forward deployed Task Elements, including wide area surveillance overland and in the Littoral (SKASaC is currently deployed on Op HERRICK). The CROWSNEST ASaC capability will now be delivered as role-fit mission system equipment for installation into the Merlin Mk2 aircraft. The A400M is a multinational European programme to design, develop and deliver a brand new military transport aircraft. The A400M will replace the Tactical Air Transport (Tac AT), capability currently provided by the C-130J Hercules fleet, with a worldwide medium lift, Tac AT and fixed wing Special Forces capability in order to meet the expectations of Defence policy. The scope of the UK elements of the programme comprises: delivery of 22 A400M aircraft; a UK In Service Support solution; and a UK training solution for air- and ground-crews. The scope of the programme covers the design, development and manufacture of 4 Successor SSBN Class submarines, to be confirmed at Main Gate, in response to the requirement detailed in the Government White Paper 2006: The Future of the UK's Nuclear Deterrent. The requirement for a class of SSBNs (Successor) to replace the current Vanguard class was subsequently re-endorsed in SDSR 10, which required a force of SSBN submarines to support Continuous at Sea Deterrence (CASD). The Materiel Strategy Programme seeks to implement transformational change within Defence Equipment & Support (DE&S), the organisation that equips and supports the Armed Forces for current and future operations, in order that it can operate more effectively and efficiently within a simplified and improved Acquisition System. An assessment phase was launched in April 2013 to explore a Government Owned, Contractor Operated (GOCO) option alongside keeping DE&S within the public sector with an improved operating model (DE&S+). T26 Single Statement of User Need is to deliver: An interoperable, survivable, available and adaptable capability that is operable globally within the maritime Battle Space to contribute to sea control for the Joint Force and contribute to maritime force protection with the flexibility to operate across and within the range and scale of operations. Current planning assumption is that 13 T26 GCS will be procured in order to replace the T23 Frigates on a 1 for 1 basis. Joint Assessment Phase Mission is to develop and cost an affordable T26 solution and in-service support model that meets the capability requirements, with the evidence to achieve MOD and corporate approvals, enabling the successful transition of the programme to the Design, Manufacturing and Support phase in 2014. The Type 45 Destroyer (T45) will be a versatile ship capable of operating world-wide and contributing to those Military Tasks (MT) that may be assigned to the maritime component of a joint force. In order for a force of ships to operate safely at sea and project power onto the land, it has to reduce its susceptibility to attack from the air. The T45 will be a key component in the control and denial of the theatre airspace in joint littoral operations, for the protection of maritime trade routes and shipping and for open-ocean warfare. It will provide the backbone of the Royal Navy’s Anti-Air Warfare (AAW) force protection capability, from the withdrawal from service of the Type 42 Destroyers until at least 2040. The T45s will make up a significant part of the frigate and destroyer force. Aside from their main war-fighting role in a naval, joint and/or combined force, they will also be able to deploy world-wide in support of wider British interests, fulfilling roles from defence diplomacy to disaster relief to crisis intervention. Wildcat has been developed to meet the twin requirements for a dedicated small helicopter for deployment in the Maritime (Surface Combatant Maritime Rotorcraft), Littoral and Land environments (Battlefield Reconnaissance Helicopter). The programme is procuring the necessary aircraft to field and support the capability and the capital equipment to support the training service (primarily simulators, training facility and courseware). The remainder of the through life training and support services required are being provided through the related Wildcat Integrated Support and Training (WIST) contract which was let 26 Jan 2012. Watchkeeper (WK) will provide the operational commander with a 24 hour, all weather, intelligence, surveillance, target acquisition and reconnaissance capability supplying accurate, timely and high quality imagery to support decision making. The system consists of unmanned air vehicles, sensors, data links and ground control stations. Watchkeeper is planned to be delivered through an incremental programme to allow the system to benefit from both existing and emerging future sensors and air vehicle technology. The Typhoon Programme aims to deliver an agile multi-role fighter that is capable of providing 75% of UK’s combat aircraft (ac). Typhoon is being delivered in 3 Tranches of ac: Tranches 1 and 2 have now all been delivered with the Tranche 3 delivery profiled between December 2013 and April 2018. The current delivery programme has the following major elements: Future Capability Programme 1 - to deliver a multi-role, dual-mode precision guided bomb capability to Tranche 2 and 3 ac; Future Capability Programme 2 - to deliver Meteor, Stormshadow and Brimstone 2 to Tranche 2 and 3 ac; advanced radar - to deliver increased capability to Tranche 3 ac, specifically Electronic Attack, Day/Night/All weather targeting and full exploitation of Meteor; and Typhoon Future Synthetics - to improve synthetic training capability and enable Air Command's intent to reduce the volume of live training flying. Project AIRSEEKER will deliver UK's airborne electronic surveillance capability against an evolving and complex target set until 2025. It will provide a rapidly deployable capability to support operations where it will be able to collect, analyse, fuse and disseminate a coherent and readily interpretable electronic surveillance picture in support of national, joint and coalition operations. The purpose for collecting this information is to support targeting and combat identification. The scope of the programme covers the design, development and manufacture of 7 Astute class submarines as detailed in the formal Staff Requirement of 1997. The military requirement for up to 8 submarines was re-endorsed in the SDSR 2010 which required the submarines to perform a wide range of military tasks; demonstrate global reach, endurance, covertness, sustained high speed and the ability to conduct unsupported operations in hostile environments. The Whole Fleet Management (WFM) is a tri-Service programme that delivers the ground based fleet of Defence vehicles in the most efficient way to meet the requirement for operations, training and support. The programme has four main components. Fleet Management allocates vehicles to fleets and activity in order to meet the requirement with the smallest number of vehicles possible. This is enabled by the remaining three components. Controlled Humidity Environment (CHE) storage provides a storage regime that minimizes the requirement for maintenance and is used to store the sustainment fleet a large part of the deployable operational fleet. The Data Recording Analysis and Corrective Action System (DRACAS) is used to reduce maintenance costs and improve availability across the whole. The Joint Asset Management and Engineering System (JAMES) is a management information system that provides global visibility of the location and state of fleet and enables the other three components. The scope of the CSSCP is centred on the corporate services functions of finance, civilian HR and procurement , with links into logistics and the back office elements of military HR. The programme will address: Business processes and supporting applications; The physical environment on which applications operate; Support arrangements for maintenance and development. The scope of the core Carrier Enabled Power Projection (CEPP) Programme consists of the QEC Aircraft Carrier, the Lightning II and the CROWSNEST capability for the Multi-role Merlin. The remainder of the original reported portfolio will be managed as key dependencies around that core and monitored to ensure coherence. The main focus of the programme is the successful delivery of a Carrier Strike capability which is assessed to be the most technically challenging and Force stressing requirement. The other elements of fighting power (amphibious capability and the support shipping) will be managed and delivered by the most appropriate FLC as key dependencies. The aim remains to successfully deliver an initial UK Carrier Strike capability by the end of 2020 whilst ensuring that Her Majesty's Government (HMG) retains the opportunity to flexibly re-configure the QE Class Carriers for other tasks and deliver a full integrated and coherent Capability over the length of the programme. It is noted that the QEC, Lightning II and CROWSNEST programmes provide separate returns. To improve the efficiency and effectiveness of corporate service delivery in the MOD, through the creation of a Defence Business Services (DBS) organisation and strengthening the role of relevant process owners, in line with best practice. This has included the appointment of a contractor to manage DBS. The programme arose out of the report on "Civilians in Defence' commissioned by the Secretary of State in January 2010 and submitted by Mr Gerry Grimstone in July 2010. The corporate services in scope include civilian HR, finance, information services, vetting, audit, commercial and military HR. DCNS will rationalise a set of existing commercial arrangements to ensure new capabilities are brought in that are effective and represent best value for money. Currently, DCNS covers successors to Defence Information Infrastructure (DII), Defence Fixed Telecommunications Services (DFTS), Skynet 5, High Frequency (HF) and Defence Electronic Commerce Service (DECS). DII is the largest Defence IT programme of its type in the world and is supporting operational and corporate operations at strategic and tactical layers globally, across the fixed, deployed and mobile environments. The creation of the Defence Infrastructure Organisation to establish a single delivery organisation responsible for the majority of infrastructure projects, estates and property management, including hard and soft facilities management and utilities management. The DIO construct enables the MOD to brigade the majority of Departmental infrastructure funding under a single top level budget. A key aim of the programme is for MOD to be able to better manage assets and delivery on a prioritised basis through the formation of the Strategic Asset Management and Programming Team (SAPT) within DIO; this in turn will deliver critical business efficiency. DRP will deliver a Departmental model that leads to better decisions, improved clarity and accountability for staff and Departmental governance which is focused on Defence outcomes. It will deliver an organisation that lives within its means, manages personnel more effectively and strives continuously for improvement. It will ultimately be responsible for the way Defence works and for ensuring that projects delivered under the DRP deliver the benefits required. The Future Reserves 2020 Commission’s six high-level recommendations will be implemented as follows: a. Stabilisation and Reinvigoration (arrest decline, revise proposition, better integration); b. Revised Roles (better definition of strategic purpose/roles; explore use of Reservists to meet some mil tasks as formed sub-units and units); c. Enablement (legislation, employer recognition, employee protection to ensure guaranteed use of Reserves; exploit innovative partnerships between Defence, Education and Industry; better admin, inc Management Information Systems (MIS); transform volunteer estate (via DIO)); d. Adjusting Regular:Reserve Balance (develop/deliver Reserve component of the Whole Force; adjust Regular:Reserve balance to deliver cost-effective manpower mix); e. Force Generation (transform/optimise volunteer estate; facilitate better Regular:Reserve integration by reviewing requirement for Regular Permanent Staff; mechanisms to improve Force Generation Factor); f. Governance (revised governance structure to oversee implementation of recommendations and provide an independent reporting mechanism to the Secretary of State and Parliament). The rationale for LCS(T) is built around the need for a future operating structure that adopts the core fundamentals; - A first principle of certainty of Military supply and; - A secondary principle of cost minimisation. The scope includes all activity that the LCS Operating Centre is currently responsible for with the exception of British Forces Post Office (BFPO), Disposal Services Agency, Bulk Fuels, Blood Products and Medical Counter Measures. The activity within scope falls into four broad areas - 1. supply chain integration, 2. commodity procurement and inventory management 3. storage of 'non explosive' stock items and 4. distribution of 'non-explosives' and munitions The overall NEM Objective - To design and deliver (Full Operating Capability (FOC) FY 20/21) a New Employment Model for Regular and Reserve Service Personnel that supports Operational Capability through a competitive offer which: • is sufficiently Attractive to recruit and retain personnel of the right quality to the point of Service need; • is Affordable within planned resources and better addresses the key drivers of net, long-term cost growth; • enables Agility through improved organisational efficiency, flexibility and adaptability. Supporting projects will examine manpower utilisation (career structures and management), financial and non-financial Conditions of Service (incl pensions which are being examined by the Future Armed Forces Pension Scheme (FAFPS)), future accommodation, training and education, and delivery. The NEM will encompass all Regular and non-Regular Service personnel. Civil Service and contractors are out of scope. The replacement of the existing estate maintenance contracts across the UK as they expire. The scope includes the following: - 4 Regional Primes - Scotland and Northern Ireland; South West; South East; Central - delivering routine maintenance services Hard Facilities Management (FM) and capital works projects (up to £3.93m); - National Housing Prime Contract - delivering maintenance services across the whole of UK Service Families accommodation; - National Training Estate Contract - delivering a range technical support, Hard Facilities Management (FM), Soft FM and a range of booking services across UK; - National Framework contract - for higher value (up to £50m), cross boundary and complex capital works projects; - Six regional framework contracts - for the majority, by volume of capital works projects up to £12m. SEPP is a business transformation programme in which the three monopsomy tier 1 suppliers within the Submarine Enterprise (BAE Systems, Babcock and Rolls-Royce) work together collaboratively with the MOD. The scope of SEPP covers the Submarine Enterprise, including the design, build and in-service support of submarines; it does not cover the Strategic Weapons programme, including the Atomic Weapons Establishment (AWE). SEPP has three strategic objectives: Performance Up, Working with industry to improve performance on new and existing submarines and strengthen the linkage between customer requirements and Operating Centre outputs; Cost Out, Realising significant savings through the rationalisation of facilities, adopting an holistic approach to design, build and support and exploiting buying power; and Sustainability In, Protecting the UK’s ability to retain and sustain the capability to design, build and support nuclear submarines as identified in the Defence Industrial Strategy and to meet the commitment to build a successor for Vanguard class submarines. The main aims and scope of the programme as described in the mandate are to manage the critical programme events, both those of an infrastructure and non-infrastructure nature, to realise the programme benefits in support of Strategic Defence and Security Review (SDSR) direction and the basing announcement on the Army Regular estate made in Mar 13. Programme delivery will see the rebasing of the Army in the UK and vacating the barracks in Germany by 2020 delivering certainty and stability for Army personnel, support and enable the Army 2020 organisational structure and deliver reduced estate running costs and capital receipts from the disposal of estate we no longer require. The overall aim of the Army 2020 Programme is to transform the British Army by the end of the decade in accordance with the structural design and operational concepts devised by the Army 2020 Study Team, endorsed by the Defence Board, providing a force which can meet Defence Planning Assumptions and unforeseen challenges in the future strategic environment. The programme will make extensive changes to the Army's structure, creating a Reaction Force and a pool of Adaptable Forces, supported by Force Troops. The number of Regular posts within the structure will fall from a post-SDSR endorsed total of c 94,000 to 82,000 by 2016. Greater and more integrated use will be made of Reserve personnel to create an Army numbering c 112,000 overall. The Army will adopt a new operating model under which Reserves are integrated for use on both routine and contingency operations. Wider changes will be made to the Army's procedures, behaviours and culture to ensure the effectiveness and long-term viability of the new model (the Transformation Agenda). MARSHALL aims to provide a Terminal Air Traffic Management capability for Defence. The capability will be delivered by a Service Provider and will be provided at all agreed MOD aerodromes and Air Weapons Ranges. An agreed level of deployable capability will also be provided. To examine and implement the most effective way of closing Rhine Garrison and Munster Station in Germany by: - moving HQ Allied Rapid Reaction Corps (ARRC), 16 Sig Regt and 1 Armoured Division Signal Regiment (ADSR) to the UK; - streamlining the infrastructure delivery management in support of UK Defence personnel based in Germany and the European mainland; - utilising or releasing estate vacated in Germany as a result of Strategic Defence and Security Review (SDSR) Preliminary Moves (i.e. Celle).
Departmental commentary on actions planned or taken on the MPA RAG rating. The delivery confidence rating reflects the delays in placing the contract for the next phase of the project. All options are being analysed prior to establishing a new baseline. New Buy: The Department has continued to actively manage a delivery strategy with the contractor; after approval there was no negative impact on the schedule. Julius: The programme is on-track to its revised schedule. Since September 2013 the rebaselining of the Programme, and a re-worked schedule, has been agreed between MOD and the Aircraft Carrier Alliance (ACA). The Secretary of State announced agreement of the new contract in the House of Commons on 6 November 2013 and confirmed it was based on a detailed analysis of costs. Following the announcement, the ACA have undertaken a comprehensive review and re-organisation of their management structure in order to improve governance and delivery performance. The new contractual arrangements will deliver improved commercial terms that provide stronger incentives for the shipbuilding industry to construct the ships to the agreed budget. N/A The department is managing issues such as skills, capabilities and dependencies through the maturing governance process. Exempt under Section 26 of the Freedom of Information Act (2000) The key deliverable post this delivery confidence assessment has been the Main Gate 4 Business Case which resulted in financial approval to procure aircraft for the first F-35B Sqn in order to meet IOC. The team is confident that the Lightning Programme remains on track to deliver on time and within its approved envelope. The team continues to monitor progress towards the development of a global support solution by the US JSF Programme Office and to mitigate any impact to UK delivery. The present Amber assessment is an accurate reflection of the programme which is still in the System Development and Demonstration phase. The UK is fully engaged with the US JSF Program Office, including numerous embedded UK personnel. As the only Level 1 JSF Partner, the UK is also involved in development test flying alongside the US Services. The project is progressing in accordance with the Project Plan and within budget. It is too early in the Life Cycle for the programme to articulate on this fully. The Programme is still being bounded. The programme has been subject to an initial MPA external review since Q2. The MCSP remains within the Performance, Cost and Time envelope defined in the MGBC approval. IOC will be achieved within the not to exceed approval date (September 2014) potentially with some acceptable capability limitations which will be overcome by FOC, which is forecast for June 2015. Exempt under Section 24 of the Freedom of Information Act (2000) A recent review made several recommendations that have been fully accepted and implemented. These included stakeholder engagement to closely manage the final stages of the Test and Evaluation programme which resulting in improved delivery confidence. The overall programme is on schedule to deliver the full capability on time and within the approved budget. No comment The A400M programme continues to make steady progress with the first customer aircraft delivered (to France) in August 2013. The UK A400M Training Service (which was approved in July 2012) continues to make good progress and remains on track to deliver in accordance with its agreed schedule. Action to address In Service Support (ISS) affordability issues has been taken, and the ISS Main Gate Business Case has completed scrutiny and is awaiting Ministerial approval which was anticipated in April 2014. A review of the programme has been conducted and the recommendations will be discussed between the SRO , Director Submarines, Project Team Leader and Programme Director to ensure coherence of action across Successor and Astute. Following the withdrawal of one of the GOCO bidders in November 2013, the Defence Secretary announced in December 2013 that the GOCO competition was no longer viable at this stage. Instead, DE&S transformed into a bespoke trading entity on 1 April 2014 as an intermediate stage and embarked on a programme of transformation building on the DE&S+ option, and a competition for Managed Service Providers has been launched. Legislation to provide a framework for a transition to a GOCO in future, if required, has passed all Parliamentary stages. A recent review affirmed that successful delivery of T26 GCS appeared feasible but significant issues existed which required management attention. The Review resulted in a number of recommendations which are in the process of being implemented at Programme and Project level. The overall assessment was that the issues should be resolvable at this stage of the programme and if addressed promptly, should not present a cost/schedule overrun. All 6 Ships are now In Service, justifying the Green RAG rating. Action is now in hand to close out the programme through the Departmental graduation process. The Wildcat Programme remains within the Cost and Performance envelope as defined in the MGBC approval and all Performance risks are being satisfactorily mitigated. Actions are based around addressing scheduling issues therefore see Departmental narrative on schedule below. Funding of future upgrades to ensure that Typhoon delivers its required capability outputs is being progressed through the approvals process. Additionally further future capability requirements are being considered to ensure that Typhoon remains credible. Shared development opportunities with export partners are being considered. The generation of the evidence to support the publication of the Release to Service (RTS) for AIRSEEKER has been labour intensive and time consuming. Additional resource requirements have been met through employing a suitably qualified and experienced group comprising a mixture of Manpower Substitution and externally contracted Technical Support. DE&S is in the process of presenting the initial RTS recommendation which if accepted will allow flying to commence earlier than programmed thereby addressing the operational requirement. The impact of this advance of schedule on the overall programme of record is currently being considered. The last 12 months has brought considerable success to the Astute Class submarine project with the delivery of the first two of these exceptionally capable submarines to the Royal Navy. However the project remains a very technically demanding endeavour. The schedule to deliver the remaining 5 boats to schedule is challenging and delivery confidence is assessed as Amber. Whilst the MOD, shipbuilder and supply chain have all learned much from the construction of the first 2 boats, challenges remain, and a number of performance improvement projects have been established to address the main technical, logistical and management risks and issues. These all involve close working between the MOD and its main suppliers and are providing increasing evidence of the manufacturing performance required to meet the approved targets for schedule, cost and performance. The Fleet Management performance of WFM is on track and its associated methodology has delivered the fleet mix that is being used to equip the new Army 2020 structure. The programme will not deliver the benefits that it forecast in 2008 mainly due to the reduction in size of the Armed Forces and partly due to an over-optimistic estimate of maintenance benefits and a lack of evidence in some areas. The benefits will be re-baselined in the first quarter of FY 14/15. The programme will address the seven recommendations identified in a recent review and actions to address them are being developed in a priority order. The CEPP programme integrates together highly complex, multi-platform, multi-environment capabilities that offer major increases in Military capability. Over the course of the last year the focus has been on maturing the governance structure and aligning programme priorities. The major achievement milestones in CEPP have included: finalising rebaselining the QEC programme agreed in October 2013 and announced in November, eventually leading to Contract signature with the ACA for revised Carrier costs; approval of investment on the Lightning II programme to provide the aircraft, infrastructure and initial support needed to achieve IOC; closing a potential capability gap in Airborne Early Warning (AEW) provision by accelerating the CROWSNEST programme by some 18 mths; developing and maturing a headline operating model against which future capability and cost decisions can be understood; and preparing for SDSR 2015 including the consideration of options for the second Carrier, potential changes to Joint Strike Fighter (JSF) buy numbers and the Fleet Solid Support (FSS) capability. The Amber/Green rating reflects challenges surrounding benefits management and to a lesser extent programme governance and resourcing, all of which are being addressed. A DCNS MPA PAR in February 2014 identified a number of recommendations to improve Delivery Confidence. Departmental approval was provided to take forward DCNS Project Grapevine 2 in May 2014, allowing the programme to proceed to issue Invitations to Quote to bidders. DII continues to deliver interim benefits, most recently beginning delivery of tools that support MOD information management. Preparation is underway to conduct independent assurance on the programme in Summer 2014 to assess programme deliverables. Strategic Business Partner Implementation Programme (SBPIP): DIO announced the preferred bidder on the 10 March 2014 with contract award on the 21 April 2014. This represents significant progress in the delivery of benefits to defence and the tax payer. Operating Model Rollout (OMR): Initial Operating Capability (IOC) of the Operating Model (OM) commenced in April 2013 when DIO moved to its new organisational design and adopted new end to end business processes. Implementation is continuing and the approach has been independently reviewed via a Gateway Review in March 2014. Actions already in hand and making good progress when the latest review was conducted. Any residual actions have been assigned to Business As Usual owners on Programme closure. Much work has been undertaken to improve programme governance, risk/benefits management and the understanding of dependencies. In parallel, firmer and more formal governance mechanisms have been re-enforced at Programme Board level. Significant effort has gone into enhancing communications/stakeholder engagement. This has resulted in a more coherent approach to the development and delivery of a comprehensive communications and stakeholder engagement plan, which, in part, will enable the cultural change required within Defence and wider society. Reporting on the performance of the Army’s recruiting and training pipeline has been increased. Early indications indicate that the current Army recruiting campaign is improving the number of volunteers for reserve service and that the handling and processing of applications is more effective. Finally, a notable achievement has been the success in meeting the demanding timelines required to support the passage of the Defence Reform Bill. Having released the Invitation to Negotiate (ITN) at the end of December 2013 the project team have been able to commence the formal engagement/negotiation with the commercial bidders. The process is progressing well. In parallel to the negotiation process further actions have been taken to ensure greater delivery confidence. These actions include; - the implementation of an improved integrated approvals and assurance process across MOD, HMT and Cabinet Office; - strengthening of the governance structure to include other government departments that will be key decision makers in the process (the establishment of a Sponsoring Group, a senior level governance group Chaired by the MOD with representation from HMT and Cabinet Office); - enhancement of the team developing the in-house proposal to ensure that the output produced reflects the best that can be achieved within the public sector framework. NEM has completed two phases of consultation with Service Personnel (Phase 1 during summer 2013, and Phase 2 between November 2013 and January 2014), which has delivered high quality evidence to support policy making. Major decisions on Pay and Accommodation will be taken in spring 2014. NEM Stage III (Policy Writing and Implementation) will commence shortly thereafter. Significant progress has been made with a clearly defined programme of work streams which have been prioritised to align to business requirements at Contract Award & In-Service dates and beyond. Service Delivery and Commercial are heavily engaged in the work. External Assistance has been brought in to provide additional resource capability. At the last OGC Gateway 3 review, conducted in January 2014, the review team stated that the NGEC programme team had rightly recognised the importance of Business Readiness and the training work stream which had made significant progress since the previous review in November 2013 and was gearing up to deliver it, supported by some External Assistance. The main focus has been on identification and realisation of benefits and the achievement of the delivery of the Foundation Contracts (FC). These embed the commitment from industry to their benefit targets. The Rolls-Royce FC was signed in February 2013 and the BAES FC was signed in July 2013. The Babcock Marine FC will be delivered through a Terms of Business Agreement (TOBA) and Maritime Support Delivery Framework (MSDF) . The recent introduction of a non-financial benefit realisation process through the re-issue of the Benefits Realisation Plan is also helping to increase confidence in the programme’s ability to deliver enduring benefits. In the last few months there has been significant progress in the Programme. Army planning is advanced in the support of 30 Unit moves/re-rolling in FY 14/15, principally in the UK. 48 Assessment studies have been conducted and this work has supported a structured process to review and agree the Army requirement and identification of infrastructure options within each site to inform Initial Gate Business Cases. Other work has included engagement with Local Authorities on the provision of services for Army personnel and planning work for future builds. This has included a range of environmental, habitat and transport studies. Army 2020 was the subject of a Major Projects Authority (MPA) Gateway Review in April 2013, and was due to be again in May 2014. Following the AMBER rating received in the 2013 review the Core Programme team drew up an action plan based on key recommendations. The majority of these have now been auctioned, for example an improved stakeholder engagement plan and the inclusion of a programme risk on the cultural and behavioural changes that will be required by both Regular and Reserve personnel to ensure the delivery of the integrated force. The current main effort within the Programme is to complete essential work to determine how programme benefits will be realised, thereby articulating how the Army will operate when the new structures are in place. Significant progress has been made with Marshall, as captured during the last Major Projects Authority (MPA) review. In order to accord with best practice a specific Programme Board has been established with the Senior Responsible Owner (SRO) as Chair. Additionally, all major milestones have been met since the Q2 Government Major Projects Portfolio (GMPP) report. The move of the two Signal Regiments from Germany to Stafford in Summer 2015 remains on track. Separate contracts to redevelop Beacon Barracks and to build Service Families' Accommodation on MOD-owned land adjacent to the barracks have been awarded and construction work has begun. The amber rating reflects the taut timelines to complete the necessary construction works.
Project - Start Date (Latest approved start date) 01/04/2008 01/04/2008 01/12/1998 01/04/2012 31/03/2008 31/08/2007 01/10/2001 25/07/2005 16/03/2010 01/06/2003 01/04/2008 01/02/2007 31/03/2013 17/05/2000 14/04/2011 02/05/2011 21/07/2008 15/08/2000 01/12/2001 01/03/1998 06/11/1987 18/03/2010 17/03/1997 31/01/2001 01/02/2010 31/01/2011 02/07/2010 01/12/2009 03/09/2001 03/01/2011 01/07/2011 30/09/2011 01/08/2011 02/05/2011 02/03/2009 31/05/2010 22/05/2013 31/08/2011 03/04/2006 31/08/2006
Project - End Date (Latest approved end date) 31/12/2022 31/03/2017 31/03/2023 19/03/2023 Not set 31/08/2040 31/03/2050 30/04/2018 31/12/2033 31/03/2016 30/04/2025 31/12/2015 30/09/2022 31/03/2022 Exempt under Section 22 of the Freedom of Information Act (2000) 01/04/2016 Exempt under Section 22 of the Freedom of Information Act (2000) 31/03/2014 31/05/2016 31/12/2040 30/03/2024 01/04/2018 31/03/2024 30/06/2025 28/02/2020 31/12/2030 01/12/2016 02/03/2020 21/03/2015 31/03/2015 01/04/2014 31/03/2018 01/02/2018 01/10/2021 01/04/2014 31/03/2014 31/03/2020 30/04/2020 04/10/2020 31/03/2019
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) Exempt under Section 43(2) of the Freedom of Information Act (2000) New Buy: Although there is some risk that Initial Operating Capability (IOC) of Jul 15 will not be achieved by the approved date, we nonetheless currently forecast that Full Operating Capability (FOC) of Mar 17 will be achieved to schedule. JULIUS: Achieved IOC in June 2012 (9 months late) with limited Release to Service. Subsequent work resolved the software problems and the overall schedule has been adjusted: we currently estimate that the original FOC of Oct 15 will still be achieved. The Programme is being scrutinised as part of the due diligence process, prior to Navy Command HQ assuming formal responsibility for the Programme, under the QEC SRO. Following Timescale Risk Analysis modelling of the latest project schedule, the project end date including risk contingency, is forecast to be 7 August 2023, 5 months later than originally planned. Risk mitigation and opportunity management is underway to address this forecast. The forecast end dates, if not recovered, would not impact on the primary output of available nuclear reactor fuel cores. Complex Weapons is a pipeline, which means that the current end date will change in line with the inclusion of new projects within the pipeline construct. Exempt under Section 26 of the Freedom of Information Act (2000) The Programme remains on track to deliver IOC and subsequently to reach IOC(M) and FOC. The US JSF Program is still in the System Development and Demonstration phase. Consequently, until all development testing has been completed, there remain some risks to the schedule which are out with the direct control of the MOD. Therefore, an Amber assessment is appropriate. The project end date reflects the planned Out of Service Date of 2048 and a 2 year disposal period to 2050. The project is progressing in accordance with the Project Plan. The Department’s approvals process for the MARS Tanker project completed in December 2012, as a result the project end date in this return has been updated to reflect the confirmed project baseline end date of 30/4/2018 (from 30/6/2019 in the previous publication). Scout SV programme schedules are currently being updated to reflect Army 2020 delivery needs. The Department remains optimistic that a successful delivery of the major projects will be achieved. The Programme will deliver to the approved timescales. Exempt under Section 24 of the Freedom of Information Act (2000) There are a number of contributing factors to the schedule deviation including: greater than originally expected volumes of remedial work that disrupted both development and production activity; delays in sourcing some critical Government Furnished Equipment; and delays to the development programme caused by technical issues and the loss of key contractor flight test personnel in an unrelated fatal helicopter accident. The Review Note, approved in April 2013, forecast Initial Operating Capability (IOC) for March 2015 and Full Operating Capability for December 2015. The Department has accelerated the CROWSNEST Programme, the detailed project schedule is subject to ongoing work. The UK programme remains on track. A Defence Board decision to bring forward 2 aircraft will see the first of these delivered in September 2014. 3 years from start, the Successor assessment phase programme is currently 2 months behind schedule. A push to recover this position has resulted in improvement as Industry manpower reaches target levels. DE&S was established as a bespoke trading entity in April 2014 and plans to transform to be ‘match fit’ by April 2017. T26 remains in its Assessment Phase, maturing the design and driving down costs ahead of the main investment decision towards the end of 2014. The Project remains on track to replace the T23 Frigates as soon as possible after 2020. The 6th T45 was released to service ahead of schedule in common with the remainder of the Class. The support solution in place had the flexibility to deal with all early arrivals and the RN benefitted by having operational assets available sooner than programmed. Three issues are subject to extra-ordinary management action to meet the schedule for the Initial Operating Capability for the Army. First, ongoing development and delivery of the flight simulator. Second, issues with the Mission Support System (MSS) - to support the initial training and fielding of the aircraft, and third is the delivery of sufficient productive flying aircrew hours to deliver the required trained crews. The Wildcat HMA Mk2 IOC remains within its Time, Cost and Performance approval and is independent of the Future Anti-Surface Guided Weapon (FASGW) Programme. Due to delays arising from Release to Service (RTS) evidence gathering, and enhanced training and Duty Holder requirements, the original IOC (February 2014) was not achieved and the programme is currently being rebaselined. Notwithstanding, during FY13/14, the WK programme achieved the following milestones, all of which were on the critical path for the delivery of an operational capability in Q3 2014: Equipment Delivery Date - July 2013, WK Technical Publications - August 2013, Statement of Type Design Assurance - September 2013, Ready to Train Date - January 2014, Release to Service - February 2014, followed by first WK flights from Boscombe Down airfield in March 2014. With the RTS now in place and commencement of flights from Boscombe Down the programme is on course to train sufficient crews to ensure an operational capability is available from Q3 2014. The first phase of the Future Capability Programme has shown good progress over the past year now that the project schedule has been rebaselined, through joint working between the Department and industry. This accommodated the 18-month delay which was highlighted in Major Projects Report 2012. The Typhoon front line fleet continues to build with well over half of the contracted deliveries of 160 aircraft in three tranches now in service with the Royal Air Force. Typhoon Tranche 2 has been declared as multi-role ready for training to further enable the development of the Typhoon Force. Airseeker is on course to deliver early beneficial use ahead of the approved IOC date. Delivery of this early capability may affect the programme of record, the scale of which is currently being analysed. The Project remains on schedule to deliver the remaining 5 submarines within the latest approval, although some substantial risks and challenges remain. The first two submarines have been handed over to the Royal Navy. The current delivery of Fleet Management and JAMES are on track. DRACAS is delivering benefits, but at a lower level than originally planned. The number of vehicles that are required to be stored in CHE has reduced due to the reduction in the size of the Armed Forces. The existing CHE also needs to be relocated due to changes in Army basing. The Civilian Payroll upgrade went live in November 2013. There are no significant current deviations from the planned schedule. The programme end date has now been brought forward to April 2017 to align with its project portfolio timescales. In the light of the above programme considerations, including refining and clarifying its major underpinning assumptions, delivery of CEPP is achievable but considered extremely challenging from technical, programmatic and financial perspectives. Projects to transform Defence Business Services (DBS), including its integration with the Service Personnel & Veterans Agency (SPVA) are proceeding to schedule, with completion expected in April 2014. These projects, with the implementation of an intelligent customer capability in the same timeframe, will mean that delivery against the original programme objectives is expected in mid 2014, two years before planned programme closure. Key to this early programme graduation will be the successful confirmation of financial benefits. Preparation to take forward GRAPEVINE 1 (DII extension) is actively underway for start of service in 2015. GRAPEVINE 2 (DFTS and Local Area Network (LAN) successor) is proceeding to tender. Beyond Line of Sight (BLOS) (Skynet) and Operational Information Services remain embryonic and subject to further requirements definition. EMPORIUM is subject to review. DII Review Note needs to be agreed and submitted to rescope the programme. Delivering the DITP whilst maintaining service delivery and implementing other key DIO change programmes is a significant challenge. The Amber rating recognises the complexity and risk involved with such a programme. To reduce risk and better manage inter programme dependencies as we entered the implementation phase, it was necessary to split DITP into two discrete programmes; the Implementation of the Strategic Business Partner (SBPIP) and the full implementation of the new Operating Model (OMR) which reported for the first time in Q4 FY13/14. The programme closed in April 2014 The Programme remains on track to deliver its benefits, however having reviewed the recruiting environment and analysed recruiting performance since publication of the White Paper, the recruiting profiles for all three services have been adjusted to take into account the lessons identified. These were published on 19 December 2013 in a Written Ministerial Statement by the SofS. As a result, early gains to the trained strengths of the respective reserve forces have been reduced in the near future, with measures identified to increase inflow in later years in order to meet the programme targets. No change The NEM programme remains on track to deliver its agreed remit by 2021. The major change in the last year to the NEM schedule has been the decision to launch the Forces Help To Buy (FHTB) interest-free loan pilot in April 2014, a year earlier than originally planned. A revised 50% risk adjusted programme has been developed and is reflected within the DIO One Journey Plan. The Treasury Clearance Note (TCN) for tranche 1(Regional Prime Scotland & Northern Ireland, National Housing Prime and National Training Estate Prime) and the Main Gate Business Gate (MGBC) for tranche 2 (Regional Primes South East, South West and Central) were approved by the Chief secretary of the Treasury (CST) on 23 April 2014. Contract Award planning dates have been agreed as 9 May 2014 for Tranche 1 and 1 June 2014 for Tranche 2, with ISD due 6 months later. The programme is on track with benefit identification and benefit delivery underway in both financial and non-financial benefits. Identification of enduring benefits has now commenced. The signing of the Rolls-Royce and BAES foundation contracts have been achieved (February 2013 and July 2013 respectively), with the remaining foundation contract with Babcock (the MSDF) due in Spring 2014. The programme is still on track to transition to business as usual following signature of MSDF. The Programme remains on course to deliver the SDSR targets of 50% of service personnel returned from Germany by 2015 and all by 2020. The Programme is seeking to deliver a mandated target of returning the last Brigade from Germany to Salisbury Plain by 2019. Following the Assessment Studies work is on going to confirm the schedule for specific site infrastructure activities and associated Unit moves. On Schedule. The shift from structural design/planning to implementation by the Chain of Command has continued, with the creation of Force Troops Command on 1 September 2013 representing achievement of the first key structural milestone. All Implementation Orders relating to structural, command and control, and location changes to be completed by 31 March 2015 have been issued to the Chain of Command. Direction has also been sent out by Commander Land Forces to implement measures to make Regular/Reserves integration a reality, including arrangements for units to operate with their paired unit. The scale of change facing the Army must not be underestimated, with significant operational commitments; the conclusion of HERRICK; withdrawal from Germany; restructuring in the UK; Regular redundancy; growing the Army Reserve; bringing Urgent Operational Requirements into core; and, implementing Levene's reforms. Work is underway and on-schedule to reach the Main Gate and Contract Award in early 2015. In Germany work to close and hand back estate to the Federal authorities has progressed quickly and Munster Station and the Rheindahlen Military Complex were both handed back ahead of schedule. Following the announcement of the Army Basing Plan it has now been decided to advance the move of 102 Logistic Brigade and to bring it within the scope of the Army Basing Programme, which means it has been removed from the BORONA Programme.
2013/2014 Budget (£million) Exempt under Section 43(2) of the Freedom of Information Act (2000) 249.82 781 102.97 450.09 27.81 137.14 57.3 168.82 79.1 911.74 33.39 2 149 472.46 32.57 87.35 109.67 175.57 79.28 1215.66 141.57 549.02 57.29 9.32 2.5 13.85 33.51 777.49 23.62 1.78 144.24 7.14 16.69 20.84 4.48 0 0 1.31 117.91
2013/2014 Forecast (£million) Exempt under Section 43(2) of the Freedom of Information Act (2000) 247.23 781 102.86 389.59 27.35 141.89 57.3 104.65 101.19 863.11 30.03 3.51 149 507.4 31.35 82.42 85.68 175.57 67.25 1215.57 150.19 534 32.23 9.78 1.5 14.32 29.62 794.8 23.62 1.78 144.24 7.14 17.58 20.84 0.3 0 0 1.48 96.76
2013/2014 Variance (£million) 0 -2.59 0 -0.11 -60.5 -0.46 4.75 0 -64.17 22.09 -48.63 -3.36 1.51 0 34.94 -1.22 -4.93 -23.99 0 -12.03 -0.09 8.62 -15.02 -25.06 0.46 -1 0.47 -3.89 17.31 0 0 0 0 0.89 0 -4.18 0 0 0.17 -21.15
2013/2014 Variance %age 0.00% -1.04% 0.00% -0.11% -13.44% -1.65% 3.46% 0.00% -38.01% 27.93% -5.33% -10.06% 75.50% 0.00% 7.40% -3.75% -5.64% -21.87% 0.00% -15.17% -0.01% 6.09% -2.74% -43.74% 4.94% -40.00% 3.39% -11.61% 2.23% 0.00% 0.00% 0.00% 0.00% 5.33% 0.00% -93.30% 0.00% 0.00% 12.98% -17.94%
Total budgeted whole life costs (£million) (including non-government costs) Exempt under Section 43(2) of the Freedom of Information Act (2000) 1053.87 6221.35 1232.35 15948.67 188.43 15291.29 1664.03 9631.3 755.44 21883.89 265.66 Exempt under Section 43 of the Freedom of Information Act (2000) Exempt under Section 43 of the Freedom of Information Act (2000) Exempt under Section 43 of the Freedom of Information Act (2000) 66.15 Exempt under Section 43 of the Freedom of Information Act (2000) 5610.77 1661.36 1518.26 20147.01 1219.4 9867.58 1448.56 66.55 23.75 41.46 5632.58 7349.97 125.71 4.63 1810.26 Exempt under Section 43 of the Freedom of Information Act (2000) 85.82 3328.79 12.42 0 0 Exempt under Section 43 of the Freedom of Information Act (2000) 1609.49
Departmental narrative on budget/forecast variance for 2013/14 (if variance is more than 5%) N/A N/A N/A N/A The department is managing the underspend through governance processes and liaising with International Partners. N/A N/A N/A The Budget/Forecast will be updated in due course to reflect the final ABC14 profile. This will also provide for more efficient delivery sequences and better alignment with Army 2020. Contract UPC remain extant since contract commenced in 2010. CDEL Variance arises following accelerated performance by supplier in 12/13 as negotiated by DE&S. Exempt under Section 24 of the Freedom of Information Act (2000) The contract held with the Prime Contractor has been renegotiated. This has resulted in a revised funding profile. As part of the work to accelerate the CROWSNEST programme, spend in FY13/14 has increased in comparison to the original budget. N/A The variance arises from increased spend to achieve schedule recovery on Platform design and Horizontal Steam Generator expenditure re-programming. N/A The in-year variance was due to lower than anticipated cost for engaging with current equipment suppliers to pass information to BAE and a slow build up of the industry project team. For future years, ABC14 Q3 costings have been used to inform the profile. The Ship element of the T45 build programme has identified further reductions of circa £33m in FY13/14; this reduction is principally caused by Risk release and greater certainty of future costs following the successful trials programme and Transfer of Asset to the Royal Navy of HMS Duncan in November 2013. However, this is offset by additional costs of circa £11m related to the Sea Viper weapon system. The net result is an overall saving of circa £20m in FY13/14. N/A The FY13/14 Budget was set during ABC13 and prior to the FY12/13 outturn. With the programme experiencing delays to delivery, it was uncertain as to whether the remaining Demonstration, Manufacture & Initial in-service Support (DMIS) milestones would be fully achievable against the schedule. The team took the view that in the absence of further evidence, the FY13/14 budget should be provisioned at a level that would support the worst case i.e. no additional accrued activity at the end of FY12/13 and that the total value of FY13/14 milestones would be payable in FY13/14. Additional evidence was subsequently provided by the contractor to support an increase in accrued activity in FY12/13 against FY13/14 milestone payments and as a consequence, the resource requirement for FY13/14 reduced post Budget, resulting in an outturn/budget underspend. N/A FY13/14 forecast shows an increase as a result of increased levels of safety related activity required to generate an evidence based Initial Release to Service (IRTS), and adverse movements in exchange rates. Pressures remain within the Equipment DLOD (Defence Lines of Development) (due to the cost of additional airworthiness activity) and Infrastructure (due to increased costs for new buildings). Variance in early years is forecast to be recovered in FY16/17+. N/A The variance is due to the reduced requirement to build and operate additional CHE storage due to a reduction in the requirement for additional storage and other reductions in the scale of WFM related activity because of the reduced size of the Armed Forces. Since this data was submitted the programme has successfully negotiated better contract costs and is now forecast to deliver under budget for 2013/14. The figures quoted above are purely CEPP Marginal Costs. The core projects (QEC, Lightning II and CROWSNEST which also submit reports) include the full costs of their projects. These marginal costs are derived from overall Head Office finance costs and based upon approved budget position. N/A Marginally under budget, mainly due to some project slippage. N/A N/A N/A N/A N/A The net increase is a result of additional forecasted costs to implement Future Armed Forces Pension Scheme & Real Time Information (originally funded by NEM) into Joint Personnel Administration (JPA), partially offset by a reduction in forecast NEM manpower costs and External Assistance. N/A The cost variance in 13/14 is attributable to a decrease in technical support for cost modelling and preparation of foundation contracts following signature of the BAES and Rolls-Royce contracts and support for MSDF being provided by another delivery team. At Q2 the ABP was in early stages of planning and a formal budget had not been mandated. Since that time the Department and ABP has made progress to profile planned and actual spend of the programme which will be included in future reporting. N/A The programme is being driven hard to deliver against an aggressive schedule to ensure contract award in early 2015. This has required elements of the technical support and assurance work to be brought forward which has resulted in the variance. The variance was due to a combination of reduced expenditure in Germany, a reduction in bulk lease costs for the Stafford project and a reduction in manpower requirement for the Innsworth project against the original control total.
Departmental narrative on budgeted whole life costs N/A Current forecast is in line with original Main Gate Business Case approvals. Whole Life Costs include funding for the New Buy and Julius Procurement Programmes up to the end of manufacture, excluding in service support costs. Work is in hand to define the in-Service Support Solution which will contribute to the development of the whole life cost model. These include all the costs for sustaining and regenerating the core production capability, including personnel, training, plant, equipment and raw materials The WLC reflect the total of all Cat A & B projects up to the end of the Manufacture phase at this current time. Budgetary alignment maintained. The forecast whole life cost estimates represent the estimated position at the end of the previous Annual Budgeting Cycle (ABC 13) and include all costs relating to procurement, equipment support and sustainment (excluding overhead costs such as manpower and fuel), and basing for the Lightning capability. Planned expenditure is continually subject to review as the cost model matures through the System Development and Demonstration phase of the US JSF Programme. The Whole Life Costs data in this publication reflects the completion of the Department's approval process in December 2012 which confirmed the project baseline. The WLC figure is anticipated to change in next year's publication due to a change in the way WLC are reported. It should be noted that the figures above are for the first ten years only and remain dependant on UV re-profiling. The Whole Life Cost figure includes avionic systems to address obsolescence issues as well as the necessary support products and training requirements. This should reduce through life cost of support. Exempt under Section 24 of the Freedom of Information Act (2000) The programme remains within the Approved Budgetary Limit and is affordable within the funding provision. Whole Life Costs include the funding for costs relating to the Puma Life Extension Programme up to the end of manufacture, excluding in service support costs. Exempt under Section 43 of the Freedom of Information Act (2000) Exempt under Section 43 of the Freedom of Information Act (2000) Stable to date GMPP costs represent Concept, Assessment Phase and planned transition costs. Costs are being updated to reflect the new programme. T26 is being designed to cost within the overall budgeted cost. The Whole Life Cost figure covers all costs until the end of manufacture, including the build, test and delivery into service of 6 T45 Destroyers, but not in service support. Whole life support costs look set to fall slightly at this range due to a re-scheduling of the Platform's Long Term Refit Plan. Although this through life saving is only in the region of £2m - it introduces significant savings in the first decade and increases platform availability through life. The Wildcat Programme procures the aircraft, some initial provisioning spares and the capital training equipment (simulators and courseware) but not the whole life support and training costs as these are funded through the Wildcat Integrated Support and Training (WIST) contract. Using the ABC14 QRPC3 data, the 'Whole Life Cost' figure includes the cost of the Assessment Phase (sunk), the ongoing cost for the DMIS Phase up to 'FOC' and includes provision for engine upgrades from 2016. However, it excludes the significant funding provision uplift from 2021 for mid life upgrades. DG Finance directed at Q2 13/14 that capability programmes should be bounded up to the end of the manufacture phase and therefore In Service (IS) support falls out of scope of a programme, forming MODs business as usual. IS Costs have therefore now been excluded from this return. Work is ongoing to ensure that whole life costs remain within budget. The Fast Air Support Team (FAST) Integrated Transformation activity aims to reduce programme costs whilst allowing recycling of financial headroom to further develop the aircraft. Budgeted whole life costs for Programme AIRSEEKER include the delivery of 3 RIVET JOINT aircraft, associated Ground Equipment and modification to existing infrastructure. This will deliver a rapidly deployable airborne capability configured to provide effect across the spectrum of operations to 2025. No significant change. With 2 submarines now at sea and the remainder under construction, there is a growing basis of historical data on which the forward procurement costs are based. The current forecast remains within the approved budgetary limit and is affordable within departmental funding provision. Once the plan for the re-location of existing storage is known at the end of 2014, including the attribution of costs to the programme, it is expected that the budgeted whole life costs will reduce. The whole life costs for the programme are based on the marginal project costs. They do not include the reduced on-going support costs as a result of implementing the programme which have their own budget lines. The delta has been captured as programme benefits. CEPP only reports marginal costs and the Whole Life Cost above reflects the addition of CEPP marginal costs over the life of the programme - Budgeted Whole Life Costs for the constituent projects (QEP / Lightning II and Crows nest) are included within their own submissions. Across the life of the programme, an overspend of approximately £3.5M is forecast, slightly higher than last year, reflecting the earlier than planned delivery of financial benefits (which outweigh the increased costs). The whole life costs cover the replacement of DECS, DFTS, DII and DHFCS. Because of its early lifecycle stage Skynet 5 replacement costs are not included. Total cost for DII reflects not only the cost of the actual programme but supporting operational costs. The whole life cost for the DITP includes in house programme team costs, external assistance and costs associated with the procurement of an infrastructure management system. Costs reported at Q2 (September 2013) represented resources allocated for external assistance for the Behaviours workstream and a small number of additional staff in the behaviours team. Some additional marginal costs will be included in later reporting. We are investing £1.8Bn over the next 10 years in the Reserves which includes funding for items such as additional recruiting, training and equipment. Exempt under Section 43 of the Freedom of Information Act (2000) The budgeted whole life cost is the NEM ABC13 bid, which includes SPVA JPA change programme costs (e.g. Scheme Pays, Real Time Information & Future Armed Forces Pension). Forecasts listed until 2020 based upon the fact contracts will be let for 5 years with option to extend for further 5 years. ABC13 still extant pending acceptance of ABC14 The following are included in the WLC for SEPP: · Supporting the preparation and signing of the 3 Foundation Contracts; · Insurance; · Support contracts. see above N/A Exempt under Section 43 of the Freedom of Information Act (2000) The figures covered in this publication include an extra ten years, out to the end of the Investment Appraisal, when compared against the 2013 publication to reflect changes we have made to our reporting processes over the past 12 months with 2014 data now reflecting the 25 year Investment Appraisal period. When comparing the whole life costs between 2013 and 2014 like for like, the budget allocation has been reduced to reflect that funding for the move of 102 Logistic Brigade has been removed from the BORONA Programme and responsibility for the move now falls within the Army Basing Programme.