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MOD Government Major Project Portfolio data, September 2015 (CSV)

Updated 7 July 2016
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Project Name Cryptographic Enabling Services Complex Weapons Operational Information Services Lightning II Programme Successor SSBN Army Basing Programme The Materiel Strategy Armoured Cavalry 2025 Armoured Infantry 2026 GRAPEVINE 2 Contracting, Purchasing and Finance EMPORIUM Future Beyond Line Of Sight GRAPEVINE 1 Astute Boats 1-7 Army Reserve Development Programme Merlin Programme Core Production Capability New Employment Model A400M Airseeker MARSHALL Maritime Sustainment Programme Nuclear Warhead Capability Sustainment Programme PUMA Carrier Enabled Power Projection Logistics Commodities Services Transformation Crowsnest Programme CHINOOK (incl. Project Julius) Queen Elizabeth Programme Wildcat Programme WATCHKEEPER Type 26 Global Combat Ship Programme Spearfish Upgrade Programme
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
IPA 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 IPA Annual Report) Exempt under section 26 of the Freedom of Information Act (2000) Amber Red Amber Amber/Red Amber/Red Amber Amber Amber Amber Amber/Red Amber Amber Amber Amber/Red Amber/Red Green Amber Amber Amber/Green Amber/Green Amber/Green Amber/Green Exempt under sections 24 & 26 of the Freedom of Information Act (2000) Green Amber Amber Amber/Green Green Amber Amber/Green Amber Exempt under sections 36 and 43 of the Freedom of Information Act (2000) Amber/Green
Description / Aims To support the Department’s information assurance capability. To realise an improved, affordable and dynamically adaptable military Complex Weapons capability which protects sovereignty and assures operational advantage. To provide a flexible and robust solution that will deliver operational information services to Land, Air, Maritime and Joint users in the deployed environment. To deliver a multi-role, carrier-capable aircraft, to be operated jointly by the Royal Air Force and Royal Navy. The design, development and manufacture of 4 Successor SSBN Class submarines. To enable delivery of the Army 2020 force structure, including support to Service Personnel and their families and the provision of required accommodation and infrastructure in the UK, achieving the policy commitment to withdraw the Army from Germany by 2020. To design, orchestrate and implement transformational change within Defence Equipment and Support, in order that it can operate more effectively and efficiently within a simplified and improved Acquisition System. To deliver an integrated multi-role capability that will include the delivery of AJAX and its training solution into service. To deliver an integrated Armoured Infantry capability that will include the Warrior Capability Sustainment Project (WCSP) and its training solution into service. To provide Defence’s Global Connectivity (GC) and Integrated User Service (IUS) requirements e.g. Wide Area Networks, Telephony and Video Teleconferencing. CP&F will provide a single online end to end procurement system for all MOD procurement activity. All other processes especially paper based systems will be either replaced or subsumed. To provide a suite of cost-effective enterprise-wide application hosting capabilities, covering all security domains, to support current and future applications needs. To maintain the current satellite communications network and develop successor capability. To deliver a cost effective and modern ‘New Style of IT’ across the Defence estate. The design, development and manufacture of up to 7 Astute class submarines The utilisation of Reservist Units by the Army as part of efficiencies in the Armed Forces laid out in the White Paper 'Reserves in the Future Force; Valuable and Valued'. Updates 30 Merlin Mk1 aircraft to overcome existing and forecast obsolescence to ensure sustainment of the required capability until the planned Out of Service date. The phased regeneration of the current nuclear core production facilities on the Rolls-Royce 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 Pressurised Water Reactor 2 and Successor technical specifications. To design and deliver a New Employment Model for Regular and Reserve Service Personnel. The A400M is a versatile airlifter able to perform two types of duty: tactical missions directly to the point of need and long range strategic/logistic missions. To sustain the UK's airborne electronic surveillance capability previously provided by the Nimrod R1 aircraft. To provide a Terminal Air Traffic Management capability for Defence that will ensure that core Air Traffic functions continue to be provided, obsolete equipment is replaced, and new regulatory conditions are met. The Military Afloat Reach and Sustainability (MARS) Tankers will replace the current single hulled tankers operated by the Royal Fleet Auxiliary. 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 – TEUTATES/EPURE To enable Puma to be generated, operated and sustained out to 2025. The scope of the core CEPP Programme is the QEC Carriers, the F-35B Lightning II and the CROWSNEST capability for the Multi-role Merlin. The main focus 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 as key dependencies. The aim is to deliver a successful UK Carrier Strike capability by the end of 2020 followed by enabling the broader CEPP capabilities. The Logistics, Commodities and Services (LCS) Operating Centre in MOD provides commodity procurement, storage and distribution services for the Armed Forces. The LCS(T) programme is designed to undertake a major reform of the LCS, developing a service of the right size for current military requirements and reducing cost through upgrades to both the inadequate current facilities, and the modernisation of the processes in operation. Equips 10 Merlin Mk2 helicopters with an advanced airborne surveillance system to meet the requirement for early threat warning and co-ordination of aircraft. The intent of the programme is to deliver the mandated Chinook capability, within allocated resources, to enable Chinook to be generated, operated and sustained, primarily for operations, out to at least 2040.The Chinook Programme currently includes Projects JULIUS and NEW BUY. Project JULIUS upgrades the cockpit of Chinook helicopters to a common standard in order to maximise the capability and flexibility of the aircraft. It also enables the aircraft (although not the crews) to 'swing role' between Special Forces and traditional Support Helicopter tasks. Project NEW BUY will deliver the requirement (confirmed by the 2010 Strategic Defence and Security Review) for 12 additional Chinook aircraft plus a further two aircraft to replace those lost on operations. This will raise the total fleet to 60 aircraft, with an anticipated Forward Fleet of 41 aircraft. To deliver 2 Queen Elizabeth Class aircraft carriers. Wildcat has been developed to meet the twin requirements for a dedicated small helicopter for deployment in the Maritime (Surface Combatant Maritime Rotorcraft), and the Littoral and Land environments (Battlefield Reconnaissance Helicopter). Defence Equipment and Support 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 January 2012. The infrastructure to support the move of Army Wildcat to RNAS Yeovilton from Germany and Dishforth is being delivered by the Wilcat Infrastructure Project (WINFRA). FLCs are providing the non-Equipment related DLODs (trained people, tactics and procedures, etc...). WATCHKEEPER is an unmanned aerial vehicle (UAV) platform that will provide battlefield surveillance and reconnaissance capabilities to the land tactical commander within the Joint Operations environment. 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. To update the UK's submarine heavyweight torpedo: safety improvements are required to ensure residual risks remain as low as reasonably practicable and improved performance is required against increasingly capable threats.
Departmental commentary on actions planned or taken on the IPA RAG rating. Exempt under section 26 of the Freedom of Information Act (2000) SRO agrees with latest assessment from IPA review in December 2015 that successful delivery is feasible but there are significant issues requiring management attention. These are resolvable at this stage and if addressed promptly, should not lead to a cost/schedule overrun. Programme is currently in concept stage. Its scope has been clearly defined and endorsed by an independent board. Boundary issues are a work in progress. Delivery of the LII Programme remains taut but is achievable. However, there is increasing risk to Initial Capability that centres on having the necessary specialists in place to support the capability. Previous attempts to increase the number of personnel in a few key areas had been unsuccessful; however, appropriate management action is in hand to rectify this situation, with increases (RAF and RN) anticipated later this year. Programme risk management has improved further, with increasingly thorough cross-capability reviews. Uncertainty over detailed support costs is diminishing, with commensurate reduction to the Logistics risks. Issues associated with Information use remain, but are being managed closely. Significant progress has been made on the infrastructure elements of the programme following approval of the Initial Gate Business Case, and as previously reported, the SRO is confident that an acceptable scale of infrastructure will be available for First Aircraft Arrival at RAF Marham in 2018. The SRO has welcomed the small uplift in the Project Management Office staff. SDSR announced intention to improve delivery performance and confidence. In 2015 the latest phase of Unit returns from Germany (returning 5,000 personnel plus dependents) and basing within the UK was completed. The majority of the related 46 infrastructure projects have now reached the detailed design stage and are proceeding into procurement. Agreement to deliver new infrastructure on Salisbury Plain has been received from the Treasury and the programme is placing a high priority on taking this forward to contract let and delivery and the related service families accommodation build to allow the 2019 final return from Germany. The Programme is seeking confirmation of a revised Programme funding profile and greater certainty of our ability to contract for a number of projects in 2016. A comprehensive Implementation Plan was approved by the DE&S Executive in September 2015. This plan is structured around three major Transformation themes: the implementation of a People Model; the introduction of a balanced matrix for staff deployment; and use of a common Process and Control Framework throughout the organisation. The Transformation plan is now progressing into full implementation (starting in January 2016) and is designed to achieve Full Operating Capability ("Match Fit") by April 2017. The programme is subject to monthly review by the Project Board and is underpinned by a formal change control process. The Delivery Confidence Assessment reflects good progress to date but recognises the challenges associated with business readiness and resourcing the change from within DE&S while maintaining business outputs. The Delivery Confidence Assessment for the Programme has remained steady since the programme's inception. With the AJAX equipment project through the Main Gate 2 phase and on contract for manufacture, the focus for 2015/16 has been to support cross-Defence activities to deliver a coherent Armoured Cavalry capability into service. The recent Army Command Review has mandated a change in programme delivery responsibilities which took effect in April 2016. This will require some refinement to the supporting Programme Artefacts, including the Programme Mandate. Improved overall programme Delivery Confidence Assessment is expected once this is complete. The Delivery Confidence Assessment for the Programme has remainded steady since the programme's inception and is likely to remain so at least until contract for manufacture. The WCSP equipment project is through Main Gate but has yet to contract for manufacture - which is a key milestone for the next reporting period. The focus in 2015/16 has been progressing cross-Defence activities to deliver a coherent Armoured Infantry capability into service. The recent Army Command Review has mandated a change in programme delivery responsibilities within the Army HQ - which took effect in April 2016. This will require some refinement to the supporting Programme Artefacts, including the Programme Mandate. It is anticipated that once this is complete, it will be possible to improve the overall programme Delivery Confidence Assessment. Both GC and IUS contracts have been awarded, with Contract Effective Dates in September 2015. This remains in an important planning period to prepare the way for legacy contract exit, transition to the new suppliers and capability migration. Progress has continued on the programme with the first tranche of infrastructure now installed; the Initial Operating Capability (Release 2) Detailed Design is now agreed and build has started; the technical platform is now live and design for Full Operating Capability (Release 3) was completed in March 2015. However, until MOD Investment Approvals Committee and Cabinet Office approval and more progress on delivery is achieved, delivery confidence will not be increased. An Action Assurance Plan review in February provides an independent view of progress. Better alignment is needed between project Emporium with current and expected future corporate as well as operational requirements. Resetting the project to improve alignment is under consideration. The programme is in concept stage and assessing options to succeed Skynet 5, whilst maintaining capability until transition. The main effort during this reporting period has been on contract renegotiation. Contract amendment was achieved on 31 July 2015, within the original financial approval limits. The contract will now deliver a significantly improved capability across Defence. Boat 3 (HMS Artful) exited Barrow in August 2015 and her good material state on sailing has enabled sea trials to progress well with minimal delays for emerging defects. Boat 5 negotiations for a full boat contract have completed and work is underway to confirm full compliance with the newly established Single Source Contract Regulation. This complex programme remains challenging but progress is being made to improve performance across all areas. The programme is well established and progressing the delivery of capability to meet the Army's transformation requirements. Now the SDSR and the first phase of the stocktake (recommended by the External Scrutiny Team) is complete, attention is focussed on implementing the next stage. This includes realising benefits, embedding new the initiatives and creating the conditions for continuing development of Reserves beyond the end of the programme. The Programme achieved its Full Operating Capability (FOC) in August 2015, ahead of the approved timescale. Significant risks to core production and the procurement of equipment for the new facilities remain. CPC remains sensitive to the outcome from the Post-Irradiated Examination inspections on the prototype nuclear reactor core of the type used in Vanguard and Astute submarines. Enhancements that ensure product quality is maximised have introduced cost increases affecting core production which will change the Delivery Confidence Assessment. Substantial progress in the key areas delivered against the NEM vision of balancing the aspirations of Service Personnel with the demands that Service makes of them; in particular delivering greater lifestyle choice and domestic stability. However, the decision on the NEM pay model needed to be considered in the context of the 2015 Spending Review, which introduced a delay against the previously planned schedule. Taking this into account, the overall Delivery Confidence Assessment was downgraded to Amber. The Programme remains on track to meet all its future milestones, but carries risk against supplier dependancies most notably in respect to meeting the planned delivery of aircraft with the required capabilities in time to train sufficient aircrew to undertake tactical flying duties. In mitigation, following the Airbus Defence and Space (ADS) manufacturing delays, that resulted in a 6 month delay to the Programme's In Service Date (ISD), a new A400M senior management team has been appointed who have engaged positively and more transparently, with Partner Nations. The AIRSEEKER Programme has continued to be highly successful, both in terms of the way in which it is being delivered but also in what is being achieved. Two of the 3 Rivet Joint aircraft have now been delivered and both have successfully deployed on operations during 2015. The infrastructure required to support the capability was completed on time and is now being fitted out to support operations from RAF Waddington. The remainder of the Programme, through to the Full Operating Capability milestone of 31 December 2017, will focus on completing the establishment of UK-based training facilities and on receiving the third aircraft: it is likely that this will all be completed ahead of the planned programme completion date. Following the 'Seamless' transfer of responsibility for existing Air Traffic Management capabilities to Aquila (1 April 2015), they have fully achieved the contractual levels of service availability. As we proceed further into the 'Asset Provision Phase', work intensity has increased as Aquila begin providing the wide array of ATM equipment across multiple sites. The introduction of Wide Area Multilateration will be particularly challenging, however lessons are available from both civil and overseas markets to aid the integration of this new equipment. Equipment acceptance activities remain intense with continued strong support from the Military Aviation Authority and the Release To Service Authority. Contract governance arrangements are bedding-in and are integrated with existing capability governance mechanisms, but some work is needed to improve effectiveness. We remain confident that Marshall is well placed to contribute and respond to SDSR decisions; the challenge will be maintaining alignment between Marshall and other capabilities that have a dependency on ATM. This risk will continue to be monitored closely. A Gateway Level 0 Review was held in February 2015 which identified a number of actions including improving documentation, training and provision of Government Furnished Equipment (GFE). These actions are being tracked and actively addressed. A Gateway Level 4 review is planned for Autumn 2016. Exempt under sections 24 & 26 of the Freedom of Information Act (2000) Despite the tragic crash of an aircraft and resulting loss of 2 crewmembers in Afghanistan in October 2015, the programme nevertheless achieved its Full Operating Capability on 8 January 2016 and is now focussed on Programme Closure and transferral to Business as Usual. The following top risks remain: schedule achievability, sufficient trained personal and affordable/effective support solutions. An outturn standard for QEC has been agreed. SRO(CEPP) continues to closely monitor the progress of the CEPP Core Programmes and the related enabling capabilities to ensure that programme milestones are met. The following measures have been implemented to assure continued progress is made: assuring delivery through regular readiness reviews, particularly before any major milestones; addressing individual programme and CEPP level risks to delivery; identifying and addressing key unfunded dependencies; developing UK/US Statement Of Intent (SOI) interoperability opportunities and Implementing the SDSR 15 CEPP measures. Furthermore a National Audit Office (NAO) study is planned for Q1/Q2 2016 and is expected to focus on interdependencies and programme benefits. Good progress continues to be made in regard to programme delivery. Service Commencement Date (SCD) was reached, as planned, on 1 August 2015 with nearly 1200 staff (1600 posts) transferring to the LCS(T) Delivery Partner (Team Leidos). Unions noted the TUPE transfer as an example of best practice. Prior to proceeding with SCD, a Readiness Checkpoint Review (RCR) was undertaken to confirm that both parties were ready to proceed and that there was no increased risk to operational output. The RCR was conducted in early July, with the IPA providing independent assurance, and reported to a specially convened principals’ meeting prior to 1 August 2015. On the basis of the review's findings the recommendation was to proceed to SCD as planned. The programme was reviewed in February 2016 and a further review is planned for July 2016. Recruitment to the Commissioning and Management Organisation(CMO) is progressing well with all posts now being covered (either on a permanent or temporary basis) and the permanent Head of the CMO has been appointed. Building of the Defence Fulfilment Centre commenced 16 October 2015, this is a two month slip in the build programme and will result in a rephrasing of Capital Expenditure costs across financial years FY15/16 and FY16/17. Given the continued progress the team is confident that the programme will deliver the benefits identified in the Main Gate Business. However the transition required is complex. The Delivery Confidence Assessment declined as a result of staff shortages in the programme and risk in the Merlin modification. The competition to downselect the CROWSNEST mission system completed in April 2015 with Thales selected as the preferred mission bidder. Following this milestone the Prime Contractor (Lockheed Martin) worked with Thales to submit a Demonstration and Manufacture bid proposal in October 2015. Commercial and programmatic negotiations achieved Main Gate in May 2016. All 14 Mk6 aircraft have now been delivered under Project NEW BUY. The modifications for 38 of the 46 Mk4 and Mk5 aircraft have been completed under Project JULIUS; the remaining Mk5 aircraft are due for completion by the end of 2016. The Programme assessment was due to uncertainty over the ability to recover the backlog of outstanding work and to control costs. Granularity of Management Information (MI) on finances and schedule was a concern but the MI has been significantly developed. The last three Aircraft Carrier Alliance (ACA) Estimates at Completion have consistently suggested potential build cost overruns but the MOD continues to drive the ACA to the target cost. Since this Delivery Confidence Assessment, infrastructure preparations have made progress, with the replacement BT cable between the Isle of Wight and the mainland being laid, enabling the Portsmouth Harbour dredge project to start. In addition SDSR provided funding to man and operate HMS Prince of Wales. Production continues as planned and the aircraft has been successfully deployed on the Atlantic Patrol Ship for 6 months and has achieved validation of its Littoral Manoeuvre capability. The training capability delivered by the Flight Simulators is expanding but remains subject to higher level management action and is expected to reach a high level of maturity by end 2016. The training has continued with reducing reliance on the aircraft. A recent independent assessment highlighted some minor areas of further work but overall raised no areas of concern for successful delivery of the programme. Delivery challenges identified since the last data release are being addressed and the current increase in delivery confidence reflects the efforts made to gain control of the programme and place it back on a firm footing following its successful deployment to Afghanistan in 2014. Efforts to increase delivery confidence continue in preparation for the next Programme Assessment Review in 2016 We have begun the work necessary to take forward the programme outlined in the SDSR.  Together with industrial partners, a revised programme will be produced and be considered through the normal investment approvals process. Delivery Confidence Assessment is primarily affected by the availability of platforms for trials and the parallel development of the Combat System integration 'Weapon Thread' element. Both of these dependencies are being regularly monitored and reviewed formally at each Programme Board.
Project - Start Date (Latest approved start date) Exempt under section 26 of the Freedom of Information Act (2000) 31/03/2008 01/04/2019 01/10/2001 14/04/2011 22/05/2013 02/05/2011 22/01/2014 04/12/2014 01/12/2009 01/12/2011 21/10/2011 01/01/2011 01/04/2015 17/03/1997 01/12/2014 01/06/2003 23/04/2012 02/05/2011 17/05/2000 18/03/2010 03/04/2006 25/07/2005 01/04/2008 01/02/2007 31/01/2011 01/08/2011 26/03/2013 01/04/2008 01/12/1998 01/12/2001 01/03/1998 21/07/2008 01/04/2008
Project - End Date (Latest approved end date) Exempt under section 26 of the Freedom of Information Act (2000) 01/04/2032 01/04/2024 31/03/2026 Exempt under section 35 of the Freedom of Information Act (2000) 31/03/2020 01/05/2018 30/04/2025 31/12/2026 22/06/2020 31/03/2018 01/12/2017 31/08/2040 05/03/2018 31/03/2024 01/01/2017 31/03/2016 14/11/2028 29/10/2021 31/03/2022 01/04/2018 04/10/2020 30/04/2018 30/04/2025 31/03/2016 01/12/2026 01/02/2018 30/09/2022 30/06/2017 31/03/2023 31/05/2016 03/07/2017 31/12/2034 31/03/2024
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) Exempt under section 26 of the Freedom of Information Act (2000) Programme on track to deliver key milestones as described in Mandate Full Business Case approval is planned for July 2016. Project End date has been amended to 2026 to reflect the point at which the currently planned follow-on development Block 4 weapons capability upgrades will be completed. The Programme remains on track to deliver UK Initial Operational Capability (IOC) by December 2018 and subsequently IOC (Maritime) and Full Operational Capability. Schedule assumptions are maturing, tending towards longer duration, to be assessed and declared at next investment decision. The Programme has exceeded the SDSR10 targets to return 50% of Service Personnel from Germany by 2015. To date almost 15,000 service personnel (74% of the planned total) have returned to the UK, including 5,000 in 2015, and all remaining moves are planned to complete by 2019. The hand back of estate in Germany is proceeding to plan with over half returned by the end of 2015. That said, due to the deferral of funding (mandated by MOD Centre) from FY15/16 and the need to reprofile the Capital Infrastructure Programme (CIP) for future years, subsequent alignment of the supporting infrastructure with the rephased available funding over the life of the Programme has resulted in delays to the completion of infrastructure on a number of sites The programme end date is aligned to the end of the Managed Service Provider Contracts. A staged approach to implementation began in January 2016 and will continue through until March 2017. With the AJAX equipment project under contract for manufacture on a fixed platform delivery timeline, the programme is well placed to meet its schedule. Considerable work is on-going to ensure that supporting activity across Defence is aligned to this delivery timeline. The programme is on track to deliver the planned capability to performance, cost and time. Primary focus for the schedule is the equipment line of development for WCSP. There has been considerable effort in this area, working with the prime contractor to understand their level of confidence in the delivery schedule. While the programme is currently on track to deliver the planned capability to performance, cost and time, this will be confirmed once the equipment is on contract for manufacture and the implications of the SDSR are worked through. On track to meet IUS milestones for transition to new suppliers and GC service readiness. The original planned dates for IOC and FOC were June and October 2016 respectively. The forecasts dates are now September 2016 and December 2016 respectively. The delay has occurred due to a number of reasons including, greater technical complexity being revealed as the design has developed and an aggressive timeline that presented too high a risk to success and subsequent impact on the business. The revised dates reflect a more realistic plan and incorporate an increase in both system and user testing. Also an upgrade to the technical platform has been decoupled form the IOC activity to derisk IOC delivery. Successful delivery of the technical platform upgrade in January 2016 has increased confidence in delivery. Schedule subject to realignment. The programme is in Concept Phase with Initial Gate Business Case approval forecast for mid-2016. A decision was made to include ‘pre-Beta’ testing to ensure a heightened user experience and optimal service across the globe. Pre-Beta began in May 2016, preceding Beta scale rollout planned for the end of June; Live service will follow in summer 2016. The programme schedule will be reviewed during 2016 to ensure that boats 4, 5, 6 and 7 approvals and financial provision are achievable. The programme is making good progress towards Trained Strength targets and as at March 2016 is 2690 ahead of the April 2016 target. Whilst significant improvements to new entrant inflow have been made it remains a significant challenge to achieve the April 2019 target. Programme is awaiting Closure sign off. Delivery of the regenerated facilities continues, although risks are materialising and affecting the programme. However, these risks are not on the critical path to deliver the first Successor core. Programme was on track less concerns over pay reform, on which a decision could not be taken until conclusion of the CSR. The forecast end of the Programme remains unchanged. The transfer of the 7th UK A400M Atlas aircraft to the RAF on 10 September 2015 marked the UK's achievement of In Service Date (ISD). This milestone was six months later than planned due to issues with fuselage production in Bremen and exacerbated by the crash of an Airbus Defence and Space (ADS) operated A400M aircraft in Seville in May 2015. The impact of the ISD delay to subsequent Programme milestones can be contained within the revised ADS aircraft delivery plan due to A400M Programme Board action to gain more efficency from the UK A400M Defensive Aids modification project and implementation of training mitigation plans. Alongside ISD achievement , the full flight simulator was formally accepted on 16 July 2015 and the first line crews commenced training in August 2015. The Programme is on schedule and should complete ahead of the planned date for Full Operating Capability of 31 December 2017. Early indications of the processes involved in the planned management of the Programme are positive, with the Marshall Vesting Day when present ATM capabilities transferred to the service provider occurring as planned on 1 April 2015 The delivery of the Heavy Replenishment at Sea (HRAS) project of MSP has completed and the project has proved that the 5 tonne replenishment at sea capability can be delivered. Overall, the MARS Tanker project is on track to deliver four ships by the project end date. A significant number of key build milestones have been achieved: Cut Steel for Ships 2-4 were all achieved on time (Nov 14, Jun 15 and Dec 15), Keel Lay for Ships 2 & 3 also achieved on time (Jun and Dec 15 ), and Launch of Ship 1 took place as planned in October 2015. However, the build programme is behind schedule due to complexities encountered during construction. This is being monitored and managed in conjunction with the Contractor (DSME). Exempt under sections 24 & 26 of the Freedom of Information Act (2000) The Programme was previously scheduled to complete by 31 December 2015, but this would not have allowed sufficient time to complete the final activities necessary to enable full realisation of benefits and to learn from the experience of the Programme. Approval has therefore been gained to delay the Programme Closure date until 31 March 2016. The Project end date has changed since last report from December 2030 to December 2026 to reflect the point that FOC(CEPP) is achieved. The Amber RAG status reflects the major risks and issues which were apparent in a number of areas. The objectives issued by the SRO are the route to improving the Delivery Confidence Assessment and keeping the programme on schedule, by promptly resolving the risks and issues . This appears feasible at this stage. The Business Case was approved by the MOD's Investment Appraisal Committee and the Defence Board in January 2015. Original Outsourcing Service Commencement Date (SCD) per the Main Gate Business Case was 01/07/15, actual SCD was 01/08/15. Key programme milestones remain unchanged. Mission system down select was completed in April 2015, Main Gate was achieved in Quarter 1, 2016/17. The Programme remains on schedule to achieve NEW BUY Full Operating Capability in March 2017. The Programme was previously scheduled to complete by 31 March 2017, but this would not have allowed sufficient time to complete the final activities necessary to enable full realisation of benefits and to learn from the experience of the Programme. Approval has therefore been gained to delay the Programme Closure date until 30 June 2017. The Maritime Capability Trilas and Assessment (MCTA) team is tracking the ACA progress and we continue to challenge the ACA to deliver HMS Queen Elizabeth to the approved schedule. The programme remains on schedule to deliver an Initial Operating capability by the end of 2020. Initial Operating Capability has been declared for both Army and Navy Wildcat variants within planned timescales and progress continues on schedule towards delivery of the Full Operating Capabilities. The Watchkeeper envelope remains challenging, but it is the SRO’s assessment that Full Operating Capability can be met by April 2017. SDSR outcomes, and the associated budgetary settlement, will require a re-baselining of the Type 26 Global Combat Ship programme. It will take time to work through the detailed changes to ensure a robust baseline, but momentum will be maintained on the critical elements of design and de-risking whilst the new programme baseline is developed. Project end date, based on delivery of all modification kits, has been revised to 31 March 2024 via Review Note dated 20 November 2014. Delivery of full capability is dependent on availability of converted platforms which is outwith the scope of the project.
2015/16 Budget (£million) Exempt under section 26 of the Freedom of Information Act (2000) £444.09 £9.60 £551.47 £770.41 £345.74 £78.00 £245.92 £90.50 £110.03 £38.64 £7.22 £9.84 Exempt under Section 43 of the Freedom of information Act (2000) £638.65 £168.84 £1.00 £170.50 £13.61 £541.67 £134.59 £74.42 £194.98 £1,085.43 £2.16 £1.44 £113.52 £4.08 £97.70 £712.93 £39.46 £61.03 £222.30 £37.40
2015/16 Forecast (£million) Exempt under section 26 of the Freedom of Information Act (2000) £336.84 £9.60 £529.44 £739.34 £146.74 £74.23 £237.06 £84.15 £131.12 £33.85 £7.22 £4.37 Exempt under Section 43 of the Freedom of information Act (2000) £641.67 £162.61 £0.55 £158.13 £8.92 £491.80 £132.06 £70.29 £176.84 £1,009.75 £2.25 £1.44 £119.29 £13.60 £97.70 £687.01 £39.46 £58.94 £222.00 £37.09
Variance Budget / Forecast %age Exempt under section 26 of the Freedom of Information Act (2000) -24.15% Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. -57.56% Budget variance less than 5%. Budget variance less than 5%. -7.01% 19.17% -12.39% Budget variance less than 5%. -55.57% Exempt under Section 43 of the Freedom of information Act (2000) Budget variance less than 5%. Budget variance less than 5%. -45.00% -7.26% -34.44% -9.21% Budget variance less than 5%. -5.55% -9.30% -6.97% Budget variance less than 5%. Budget variance less than 5%. 5.08% 233.64% Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%.
Total budgeted whole life costs (£million) (including Non-government costs) Exempt under section 26 of the Freedom of Information Act (2000) £18,499.66 £73.83 £12,941.61 £31,000 £1,972.11 £379.07 £6,831.53 £2,176.45 £1,334.77 £159.73 £236.48 £7,280.69 Exempt under Section 43 of the Freedom of information Act (2000) £9,935.48 £1,998.39 £718.17 £1,443.46 £202.88 £3,713.09 £757.80 £1,819.96 £596.50 £21,028.75 £374.93 £21.69 £652.42 Exempt under section 43 of the Freedom of Information Act (2000). £1,009.17 £7,289.68 £1,610.84 £1,169.78 Exempt under sections 36 and 43 of the Freedom of Information Act (2000) £415.97
Departmental Narrative on Budget / Forecast variance for 2015/16 where more than +/- 5% Exempt under section 26 of the Freedom of Information Act (2000) The reduction in in-year spend for Complex Weapons is principally due to a central MoD finance request to reduce in-year spend to help meet overall MoD funding priorities. Budget variance less than 5%. Budget variance less than 5%. In February 2016, HM Treasury agreed, as set out in SDSR15, the further investment of £642 million in the Assessment Phase, including further submarine design de-risking and buying essential long-lead items for the fourth submarine. This will take the total cost of the Assessment Phase for the Successor submarine programme to £3.9 billion. Departmental financial pressures in year required a deferral of ABP expenditure from FY 15/16 to the value of £169M.  This funding has been reprofiled in later years providing a revised Programme delivery infrastructure schedule and budget profile. Where this results in delays to infrastructure delivery we are implementing short term plans to mitigate the impact in agreement with the Army. Budget variance less than 5%. Budget variance less than 5%. Variance of -7.01% is mainly a result of the decision to realise Defence-directed in-year savings. The in-year increase in variance is a spike that is offset by reducing forecast against the budget in FY17/18 forward. Overall forecast predicted to be £188M less than initially budgeted for. In year variance is as a result of the slower progress then the original plan and therefore deferral of milestone payments to the contractor into financial year 16/17. Budget variance less than 5%. Overall variance is due to changes to project scope i.e. removal of High Frequency and Very Low Frequency requirements. This has produced the in-year variance. Forecast and budget representative of New Style of IT (Base) only. Forecast includes money for risk which distorts alignment with budget; In-Year variance, however, balances out in future years. Budget variance less than 5%. Budget variance less than 5%. The variance reflects risk retirement associated with the delayed modification of final Merlin Mk2 airframes which had been caused by their deployment on operations overseas. Management action was taken to defer elements of cost to future years as part of responsible Departmental budget 'balancing' activities across the submarine portfolio. Following a comprehensive review of the programmes Joint Personnel Administration (JPA) change requirements, the current profile for JPA funding was reduced. The programme is also bearing several gapped posts. In Year, the favourable programme variance is predominately attributable to Foreign Exchange gains of £43.5M, the benefit of which is scored to MOD centrally rather than to the programme or Air Domain. These Foreign Exchange gains reflect an exchange rate currently at approx £1=€1.36 compared with the rate of £1=€1.20 mandated by Corporate Planning Assumptions. Annual Budget Cycle 2016 costs are also underpinned by a Corporate Planning Assumption of £1=€1.20. Budget variance less than 5%. The variance In Year (£4M) is due to a number of factors including a revised estimate of cost of the end of the Assessment Phase for Marshall which was brought forward, a recalculation of risk following a Project Team review, reduced cost estimate for the Network WAN and the removal of Private Sector Support (PSS). Variance between budget and forecast is due to savings made against the UK Customisation and Capability Trials (UKCCATS) contract placed with A&P Group, and further savings derived on the build programme. Exempt under sections 27 & 41 of the Freedom of Information Act (2000) Variance in the current year relates to screened Programme changes, including the delay of the Hot and High flight trials into 2015. Budget variance less than 5%. At 30/09/15, the FY15/16 Forecast expenditure was expected to reflect a £5.8m acceleration of costs on the Defence Fulfilment Centre (DFC), however, at the time of writing a delay to commencement date of the build will lead to a £27m underspend in FY15/16 with expenditure slipping to FY16/17. The DFC is Firm priced, so the re-profiling from FY15/16 to FY16/17 does not impact the overall cost to the project. Funding to de-risk the CROWSNEST Design and Manufacture phase has been brought forward into FY15/16 explaining the variance of 233.64%. The programme remains within its pre-Main Gate budget. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%.
Departmental Narrative on Budgeted Whole Life Costs Exempt under section 26 of the Freedom of Information Act (2000) The WLC reflect the total of all relevant projects up to the end of the Manufacture phase at this current time. The growth in funding relates to the inclusion of new project funding within the pipeline in the second & third decade. Current forecast in line with budget; no variance in whole life cost. The forecast whole life cost estimates represent the estimated position at the end of the previous Annual Budgeting Cycle 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. Further re-alignment of funding has taken place with platform procurement (URF) costs aligned better with industry activities and payment schedules in year 2 (17/18). Downward pressure has occurred in support due to the reduction of cost estimates following the signature of LRIP non-annualised contracts and increased visibility of contract proposals. The overall result is a variance of -3.99%. It is intended to pursue an incremental approval approach to this programme, in order to maintain better control of cost. The programme estimate published in SDSR is for a 35-year period and includes £10B for contingencies. Budget variance less than 5%. Following implementation planning and Business Case approval, the Budget Whole Life Costs have been amended to reflect the current forecast. The headline budgeted whole life cost for the programme has remained at c.£6.8Bn throughout the reporting period. Within this headline figure, there has been some rebalancing to fund the Extended Initial In Service Support contract, agreed in July 2015, which provides all necessary support to the AJAX platform to the end of the manufacture period in November 2024. With the AJAX project under contract for manufacture, no significant change to budget whole life costs is anticipated. The headline budgeted whole life cost for the programme has remained at c.£2.2Bn throughout the reporting period. The 2015/16 variance is a result of Defence-wide in-year savings. There may be additional rebalancing in early years to support equipment delivery ahead of a manufacturing contract. Whole life cost presents optimal value for money when compared with other options and is markedly less than continuation of the legacy capability. Budgeted Whole Life costs include the up front investment (demonstration and manufacture) and then on-going support costs e.g. licence and hardware maintenance support costs over the 10 years. Existing forecast is equal to available budget. As above. Whole life cost forecast within available budget and presents an opportunity for significant savings in comparison with previous approaches. The availability of resources, particularly in areas of highly skilled manufacturing staff continues to be challenging. It is likely that there will be some changes to the production schedule in the coming 18 months, and with this there is potential for some programme cost growth; this is not expected to exceed 5%. The cost of the current budgeted Whole Life Cost of the programme remains affordable at this stage. These require careful management and regular scrutiny to ensure continued affordability. The Whole Life Cost of the programme will continue to be reviewed in line with the Annual Budget Cycle process and reported upon accordingly. The Whole Life Cost includes the introduction of avionic systems needed to address obsolescence issues, as well as the necessary support products and training requirements. Cost review work is on-going to understand the full impact of the detection of low levels of radioactivity in the coolant for the H1 prototype core. The programmes Budgeted Whole Life costs encompass Pay Reform transition costs, Project Costs (Joint Personnel Administration), Project Teams and Programme Management Office costs & External Assistance costs. The costs are broken down into the following areas: a.production of aircraft; b. Support costs (i. Airbus Defence and Space Support/Airframe Support (Airframe Medium Term Contract, Airframe Design Services Contract), ii. Engine Support (Engine medium Term Contract, maintenance Level 3 Contracts, Engine Design Services Contract), iii. other Support (inc DAS Support, Mission Planning Support and DE&S support and commodities), iv. Infrastructure Support; c. Training Costs; d. other minor projects. Budget forecasts are considered to be mature and accurate; however, costs associated with the Programme's final milestone objective (Full operating Capability) are currently being scrutinised by the Programme Board. Budgeted whole life costs for Programme AIRSEEKER cover the delivery of 3 RIVET JOINT aircraft, associated Ground Equipment and modification to existing infrastructure, together with sustainment costs up to the programme Full Operating Capability of April 2018.  This will deliver a rapidly deployable airborne capability configured to provide effect across the spectrum of operations to 2025. Changes at the end of the Annual Business Cycle round in spring 2015 (ABC15) re-set budgets. Subsequently there have been small budget changes reflecting adjustments to elements of the programme delivery. Current forecast for Whole Life Cost is within budget. Exempt under sections 27 & 41 of the Freedom of Information Act (2000) The Programme remains within its 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, integration and acceptance testing, but exclude In-Service support costs, which are funded separately. Whole Life Cost above reflects the additional marginal CEPP costs over the life of the programme - derived from the overall Head Office finance costs. Budgeted Whole Life Costs for the constituent projects (QEP / Lightning II and CROWSNEST) are included within their own submissions. Total whole life implementation costs are Forecast at £647m, reflecting a small reduction from the Allocated Budget of £652m. Forecast net benefits over the 13 Year appraisal period of £402m reflects an improvement on the Target net benefits of £336m. This largely arises from reprofiling an element of the Service Delivery Benefits. Exempt under section 43 of the Freedom of Information Act (2000). The Programme remains within its Approved Budgetary Limit and is affordable within the funding provision. Whole Life Costs include the funding for costs relating to the Projects NEW BUY and JULIUS up to the end of manufacture, integration and acceptance testing, but exclude In-Service support costs, which are funded separately. The Defence Infrastructure Organisation agreed to fund the risk of damage to the BT cables, increasing the overall budget available. Cost overrun remains a risk but this is to be held as Risk Outside Costing whilst the ACA continues to bear down on the build costs. Programme critical enhancements have been included in the Navy’s Annual Budget Cycle 2016. The Wildcat Programme incorporates the procurement of the aircraft, some initial provisioning spares and training equipment (simulators and courseware). Support and other training-related costs are funded separately through the Wildcat Integrated Support and Training (WIST) contract. Only costs to Full Operating Capability(FOC) are represented; mid life obsolescence work and capability upgrade work planned for the next decade are not. Exempt under sections 36 and 43 of the Freedom of Information Act (2000) Project forecast to deliver within budget and within IAC Approval.