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MoD Government Major Project Portfolio data, September 2018 (csv)

Updated 18 July 2019
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Project Name A400M Armed Forces People Programme Armour MBT 2025 Armoured Cavalry 2025 Armoured Infantry 2026 Army Basing Programme Astute Boats 1-7 Carrier Enabled Power Projection Clyde Infrastructure Complex Weapons Contracting; Purchasing and Finance Core Production Capability Crowsnest Programme Defence Estate Optimisation DREADNOUGHT Fleet Solid Support Future Beyond Line Of Sight Future Maritime Support Programme Joint Crypt Key Programme Land Environment Tactical Communication and Information Systems Lightning Programme Maritime Patrol Aircraft Maritime Sustainment Programme MARSHALL Mechanised Infantry Programme MODnet Evolve New Style of Information Technology (Base) New Style of Information Technology Deployed Nuclear Warhead Capability Sustainment Programme PROTECTOR Queen Elizabeth Programme Spearfish Upgrade Programme Type 26 Global Combat Ship Programme Type 31e WATCHKEEPER
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
IPA Delivery Confidence Assessment (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 on Major Projects) Amber Amber/Red Amber Amber Red Amber Amber Amber Amber/Green Amber Amber Amber Amber Amber/Red Amber Amber Amber/Red Amber/Red Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Amber/Red Amber/Red Amber/Red Amber Amber/Green Amber Amber/Red Amber/Red Amber Exempt under Section 24 of the Freedom of Information Act 2000 (National Security) Amber/Red Amber Amber/Red Amber/Green Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Amber
Description / Aims The A400M is a versatile airlifter able to perform and combine two types of duty: tactical missions directly to the point of need and long range strategic/logistic missions. The Armed Forces People Programme (AFPP) has two primary objectives, as follows: a.Modernise the Offer for the Armed Forces by developing policies that better reflect the realities of modern life and aspirations of our Service personnel and potential new recruits. Support the Services in their activity to attract and retain sufficient capable and motivated people; providing evidence on the offer through qualitative focus groups, quantitative survey data, financial profiling and remunerative comparisons with the wider economy (noting the differences between the Armed Forces and nearest comparator employers), to demonstrate that the policies enhance the people component of military capability. (Attractiveness) b.Implement coherent changes that enables Defence to make ‘the Offer’ affordable in an enduring way and to realise the financial savings agreed in SDSR15. (Affordability) The Programme initially consists of four projects, known as the ‘AF People Projects’, as follows: a.Future Accommodation Model (FAM): We are developing a new accommodation model that will improve choice, help more Service personnel rent private accommodation and better meet their aspirations for home ownership whilst still fulfilling the needs of the Services, and reduces current requirement for capital investment in Service accommodation. b.Flexible Engagements System (FES): We are developing a Flexible Engagements System that will enable Regular Service personnel to vary the nature of their Service, enabling flexible working and exploring the scope to adjust liability for deployment in order to support an individual’s personal circumstances, and provide agility for the Services in terms of employing the appropriate personnel. Flexible engagements will also provide improved opportunities for Reservists to be employed in higher commitment jobs. c.New Joiners Offer (NJO): We are developing a new package for future recruits that will enable the recruitment and retention of sufficient numbers of capable and motivated Service personnel into the future while making sure our new offer is better targeted and more sustainable. d.Enterprise Approach (EA): We are exploring with Industry how to better employ scarce skills across the Defence enterprise and build our, and industry’s, skills base. Pathfinder projects will initially test the concept in priority areas. To upgrade and extend service life of the Challenger 2 Main Battle Tank, a key part of the Army's capability through to 2035. To deliver an integrated multi-role capability that will include the delivery of the AJAX armoured fighting vehicle and its training solution into service. To deliver an Armoured Infantry that is more capable, with significantly enhanced lethality, upgraded situational awareness, better integration with dismounts and improved combined arms cooperation. Utilising advanced training systems and emerging technology to contribute to wider benefits while providing opportunities for greater efficiency. Overall Armoured Infantry capabilities provide a battle-winning contribution to the Division Warfighting line of operation. 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. The design, development and manufacture of up to 7 Astute class submarines. 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 aim of the Programme is to provide infrastructure that is fit for purpose to enable: continuous safe and secure delivery of Continuous At Sea Deterrence (CASD) until at least 2067; continuous safe and secure delivery of SSN operations until at least 2046; establishment of a Submarine Centre of Specialisation from 2020 (Initial Operating Capability (IOC)); readiness to begin Successor related training (2022); readiness to receive Successor FOC (2024); and support of MCMV operations. The scope of the programme includes all Capital Infrastructure projects on the Clyde sites at Faslane and Coulport (bounded by the current CIP line); broadly broken down into categories for: Operational Support (e.g. Berthing and Docking facilities; waste management; weapons processing); Security (i.e. physical security of sites); Training (i.e. individual and collective submarine training); Accommodation and Personnel Services (e.g. living accommodation and sports/welfare facilities); Enabling Works (e.g. roads and utilities) To realise an affordable and dynamically adaptable military Complex Weapons capability which protects sovereignty, assures operational advantage and contributes to prosperity. 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. 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 Dreadnought technical specifications. 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 main aims of the programme are to: • Create a smaller, better estate delivering required Military Capability • Contribute to the defence target of a 30% reduction in the MOD Built Estate by 2040 • Deliver £4.0bn of capital receipts by 2040. This will be achieved by disposing of 91 sites, this will in many cases involve working with TLBs and FLCs to optimise estate usage, move capabilities and re-provision infrastructure where necessary. • Contribute towards Public sector land release and the MOD target to release sufficient land to deliver 55,000 potential housing units in this Parliament. • Contribution to MOD running costs savings totalling over £4Bn by 2040. The design, development and manufacture of 4 Dreadnought Class ballistic missile submarines. The FSS project will deliver the ships to provide the solid sustainment (food, stores and ammunition) required for Maritime Task Groups and Joint Forces to operate at the reach, tempo and for the duration required to poise and deliver effect. FSS is a key enabler to achievement of Full Operating Capability for Carrier Enabled Power Projection (CEPP), provides highly mobile sovereign Access and Basing choices for Defence reducing the demand on the support chain and assuring the highly regulated and constrained movement of munitions. SDSR15 directed the delivery of 3 Fleet Solid Support Ships as part of Joint Force 2025 (JF25). To maintain the current satellite communications network and develop successor capability. The FMSS Programme has been established as the follow-on contract for the provision of engineering support (including deep maintenance) of Complex Warships and Submarines and the provision of Naval Base Services post the expiry of the Maritime Support Delivery Framework (MSDF) contract Mar 20. To support the Departments Information Assurance Capability The LE TacCIS Programme will sustain, evolve and where appropriate replace tactical communication and information systems used across the Land Environment. This includes man-portable systems, those mounted on platforms and those in deployed headquarters. The Lighting Programme will deliver a true multi-role, carrier-capable strike asset to be operated jointly by the RAF and RN, which will provide the UK with a survivable, sustainable, expeditionary, 5th Generation air capability to contribute to the widest possible range of operations. To deliver a Maritime Patrol Aircraft (MPA) to provide persistent, responsive, effective and adaptive Military Capabilities in the Under Water, Above Water, Littoral and Land environments. The Military Afloat Reach and Sustainability (MARS) Tankers will replace the current single hulled tankers operated by the Royal Fleet Auxiliary. 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. Key to the STRIKE Concept and Mechanised Infantry capability, will be the delivery of Mechanised Infantry Vehicle. Mechansied Infantry Vehicle will deliver mechanised platforms that can perform a range of roles across the mosaic of conflict complementing the capabilities provided by Armd Inf forces (Warrior) and Light Forces (Light Role and Air Assault infantry battalions) in combined arms manoeuvre. Although many of the platforms will be for the infantry, they will also deliver significant Combat Support (CS) and Combat Service Support (CSS) capabilities, including sub-unit, unit and formation (brigade) level communications to enable a coherent and credible STRIKE capability. Key to Mech Inf’s ability to achieve and create a rapid effect is its deployability, enhanced network capabilities, operational mobility, and capacity to safely move well-equipped personnel to, and support them in, the battlefield. The overarching objective of the programme is the delivery of a number of services including Hardware, Software and Helpdesk services to be used by all MOD personnel across locations both domestically and overseas. The procurements of such services commenced in Q4 17. As part of this process a number of key activities need to be completed which include (but are not limited to) the following: - Exploiting the more favourable exit conditions agreed from ATLAS renegotiations to facilitate the transition to future service providers. - Execution of the Joint Requirements Oversight Committee-directed study of MOD’s OFFICIAL vs SECRET balance and reflect this in each of the procurements. - Information Systems and Services will consider cross-government collaboration opportunities in the programme. To deliver a cost-effective and modern ‘New Style of IT’ across the Defence estate. The provision of an IT system which will deliver operational information service to Land, Air, Maritime and Joint users in all physical environments. 1. Support in-service warhead and production / transition to Mk4A until the Out of Service Date, safely and securely; 2. Delivery against the NWCSP high-level characteristics; 3. Provide the evidence to support a future warhead decision; 4. Increase engagement with the US to align capabilities and requirements for any future warhead decision / direction; 5. Deliver the hydrodynamics capability with the French; 6. Seek to ensure value for money from the programme and keep to budget. The PROTECTOR Programme will deliver a future UK capability for deep and persistent armed surveillance, target acquisition, and reconnaissance. To deliver 2 Queen Elizabeth Class aircraft carriers. 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 against increasingly capable threats. 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 projection and Joint Force command and control with the flexibility to operate across and within the range and scale of Contingent and non-Contingent operations. This 8 ship programme will deliver Anti-Submarine Warfare capability to protect strategic assets, sustain national shipbuilding capability and increase resilience of the Naval Service. The T31e programme aims to deliver a pipeline of credible, affordable and exportable warships enabling Defence to increase its global footprint, maintaining 19 frigates and destroyers for the Royal Navy and releasing ‘high-end’ warships from baseload tasks. The T31e is the primary means of realising the National Shipbuilding Strategy’s (NSbS) benefits, including transforming warship programme governance and industrial performance. T31e will operate to deter aggression at home and abroad. It will work with military and civilian agencies against a broad range of security tasks and protection and of UK economic interests. 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.
Departmental commentary on actions planned or taken on the IPA RAG rating. The A400M Programme is reaching the conclusion of a Global Re-Baselining. The outcome is looking positive with a commitment from industry to deliver the contracted performance. Aircraft availability poses an immediate challenge but actions are in hand to improve the picture - though this will take time. Hence, the delivery confidence assessment remains unchanged at Amber. The last IPA Review of the programme took place in 2017 (Amber/Red). Since then there have been considerable changes to the programme that has reduced delivery risk (the closure of New Joiner Offer Project) coupled with generally good delivery progress (see schedule narrative). The SRO has recently upgraded the delivery confidence assessment to Amber to reflect this (with the agreement of the IPA which is represented on the Programme Board). Delivery Confidence Assessment remains the same. However, in response to changes and advice from the Treasury the Army decided to further enhance the capability. A Review Note reflecting this has been submitted but is not yet approved. The Delivery Confidence Assessment for the programme has remained steady since the programme’s inception. The most recent Gateway Review in March 2019 reaffirmed the Amber delivery confidence. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The IPA conducted an Assurance of Action Plan review for Army Basing Programme (ABP) in Jan 2018. On 19 Jan 2018, this review returned ABP to a position of AMBER from its previous confidence rating of AMBER/RED. This was due to heightened confidence in the delivery of Salisbury Plain Training Area Service Families Accommodation as the Main Gate Business Case approval was given in Nov 2017 and contract agreed. Twelve recommendations were made and worked through by ABP, some of which began looking towards the critical Summer 2019 Moves window, the transition of personnel from Germany (and UK) to new locations in the UK by 2020. A further Gate 0 IPA review was held in Feb 2019, focusing on assessing confidence in this transition plan. ABP were given a confidence rating of AMBER/GREEN on 14 Feb 2019, reflecting the maturing position of the ABP. This rating has been well received, but ABP are not complacent and continue with detailed preparation, including essential EU-exit contingency and mitigation planning. Dept is working with the key supplier, BAES, to improve delivery performance. Work is ongoing to improve quality, reducing rework and defects. An increased focus on improved Management Information and project controls, is enabling greater insight, proactive decision making and collaborative working. Lastly, internally to MOD continual steps are being taken to improve the resource position, resulting in the project team significantly increasing headcount over the last year. enabling greater scrutiny and collaboarative working. Lastly, internally to MOD continual steps are being taken to improve the resource position. Overall delivery confidence of the Carrier Enabled Power Projection Programme IOC(CS) remains at Amber (and aligns to the IPA RAG Rating). The programme continues to utilise a robust risk based approach. Significant focused management attention across the CEPP enterprise continues to deliver milestones to time. Action taken: Practices & Proceedures embedded from bespoke project execution plan. Action to be taken: Establish audit process to ensure oversight. Work continues on the Action Plan drawn up by the SRO in response to the Sep 18 PAR and has been brief to the CWP’s (Complex Weapons Programme) IPA representative in Mar 19.   These break down into two main areas; those being address by Portfolio Plus programme which seeks to  refresh the current arrangement with MBDA and deliver further efficiencies to defence for the next decade, and to generate a Strategic Outline BC for the whole CWP to streamline the approvals process.  There are a number of additional actions that have been escalated or resolved and the details of these can be found in the Q4 CWP report. Amber IPA RAG . The focus is to finalise System Requirements. Information gathering and review of options to support the delivery approach and gain Approvals in June 19 for the revised delivery timeline, funding profile and procurement route. The 'Amber' Delivery Confidence Assessment recognises the completion of significant work to re-baseline CPC (Core Production Capability) and to enhance governance arrangements. Delivery Confidence remains Amber as ongoing schedule challenges means the programme requires constant management attention to deliver. The DEO Programme continues to report an Amber/Red IPA RAG status, however significant work is underway to ensure the successful delivery of the programme which has included; • A full programme reprioritisation to address the programme affordability issues, moving to a disposal lead structure, included as part of the February update to parliament • Enhancing the DEO governance model to further empower Senior Responsible Officer’s The programme has continued to gather pace in the first year of Delivery Phase 2, the design has matured substantially and build activity escalated significantly: Dreadnought outfitting continues to increase in the Central Yard Complex, the fabrication of units for HMS Valiant will start soon and delivery of components into the shipyard continues to escalate. The Dreadnought Alliance (Ministry of Defence's Submarine Delivery Agency, BAE Systems and Rolls-Royce) stood up on 1 April 2018. Gateway review (Jun 18) provided an improved Amber/Green assessment. Quarterly DMPP (Defence Major Project Portfolio) return continues to be assessed as Amber reflecting challenge in maintaining adequate staffing of the programme and project teams. Active prioritisation of key functions remains ongoing. The Aug 18 Cabinet Office Project Assessment Review (PAR) raised 8 recommendations; all were accepted and are being actively implemented and managed. Two actions are Critical: (1) To ensure there is no gap in specialist support during the transfer from the current interim support partner to the long term delivery partner. (2) To develop a robust realistic and resourced plan to deliver SKYNET 6A (first satellite) on time with appropriate project controls and governance. Exempt under Sections 35 and 43 of the Freedom of Information Act 2000 (Policy Development and Commercial Interests respectively) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) The MOD accepted the recommendations made in the IPA review of the LE TacCIS programme in Oct 17 and has worked to address them. Strong progress has been made as evidenced in the LE TacCIS review in Oct 18, with some work ongoing to close out the remaining recommendations ahead of a further IPA review of the programme in Oct 19. Significant effort has been undertaken with the UK based Lighting Delivery Team and across the wider F-35 enterprise in order to address the key areas of concern in the run up to declaring an Initial Operating Capability (IOC). The UK took delivery of its 16th Lightning aircraft in September, 9 aircraft are now based at RAF Marham and we have commissioned our Integrated Training Centre (ITC). Further progress has been made in the commissioning and testing of the Autonomic Logistics Information System (ALIS) at RAF Marham. The recent opening of the ITC and use of Full Mission Simulators for Pilot training is a welcome achievement. Challenges around delivery of required UK weapons clearance and operational test data to provide evidential requirements to support the acceptance case for IOC (Initial Operating Capacity) have been mitigated and have now met overall requirements to support IOC . As per past reports pressure due to lack of personnel within the Lightning Delivery Team remain extant although work continues to address through recruitment and re-organisation. Substantial progress has been made and the expectation is that we are moving towards an AMBER status for the next reporting period. Gateway Review (Amber/Red) due to the number of dependencies and uncertainty, mainly information and infrastructure. Infrastructure recommendations and findings continue to be addressed with the Lossiemouth Development Programme (LDP) now progressing on a programme footing, and the build of the strategic facility progressing ahead of schedule. Integrating the P-8A into the UK information environment remains a challenge, the pending approval for the Information Systems and Services (ISS) will support this process. The project is now in the final stages of acquisition and focus is firmly on completion of customisation and transition into service. Customer and Project Team are working on agreements to the overall plan to Full Operating Capability. Planning and Scheduling for project evaluation and closure activities are being finalised.   The Latest Marshall Assurance Action Plan report (Amber/Green) provided 4 recommendations, all of which have been implemented. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) An updated Programme Review Note willl be submitted to the Defence Project Assurance and Scrutiny and the Investment Approvals Committee in July 2019. The work detaling MODs requirement for its SECRET network and associated services is ongoing with Joint Force Command and the Office of the Chief Information Officer and will submit its findings and recommendations to the Joint Requirements Oversight Committe in July 2019. The gateway review provided a number of recommendations that have supported the programme, resulting in the improvement of working relationships with DXC. The recommended pausing of Projects within the Deputy Director area has enabled the flexing of resources to prioritised projects. Fortnightly supplier and Chief Executive Officer engagements continue to focus on critical path activities to drive confidence in delivery. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 24 of Freedom of Information Act 2000 (National Security) Financial Review, rebaselining and contract re-negotiations are concluded. Review note is pending approval. New Mandate to be issued in due course. Programme will deliver 2 yrs late and over original predicted cost. Ship's company succesfully increased to 806. Aircraft Carrier Alliance continues efforts to control build cost over-run. Queen Elizabeth/Prince of Wales maintenance periods deconflicted and maintenance load planned The Spearfish Upgrade (SFU) torpedo demonstration phase is progressing towards achievement of Initial Operating Capability (IOC) in 2020. However, delivery confidence has deteriorated from that reported in 2017 owing to technical issues during submarine firing trials. These issues have been mitigated through a re-design of the overall trial programme, including additional non-submarine firings, and engineering activity. That said, the Spearfish Programme achieved the first successful autonomous use of SFU against a submarine target in late 2018. The dependent projects that enable transition of SFU into service once IOC is achieved have also been progressed since the last transparency return. However, significant commercial issues have emerged with delivery of the in-service interface of SFU torpedo to the Combat System and the arrangements to convert torpedoes to the new SFU variant (through an in-service support arrangement). Resolution of these issues are the prime medium-term focus of the Spearfish Programme with Industry Partners having the key role for achieving success. Delivery confidence reduced to Amber following the IPA Project Assessment Review (05/11/2018 ). Progress continues to be made against the recommendations. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Full Operating Capacity achieved on 30th November 2018. Remaining project deliverables ongoing, expected 19/20 and 20/21 embodiment of final functionality.
Project - Start Date (Latest Approved Start Date) 17/05/2000 25/11/2015 04/12/2014 22/01/2014 04/12/2014 22/05/2013 17/03/1997 31/01/2011 07/09/2015 31/03/2008 01/12/2011 01/04/2012 31/03/2013 30/09/2016 14/04/2011 14/03/2016 01/01/2011 26/09/2016 Exempt under Section 26 of Freedom of Information Act 2000 (Defence) 01/05/2013 01/10/2001 08/07/2014 25/07/2005 03/04/2006 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 29/02/2016 01/04/2015 01/04/2015 01/04/2008 30/04/2009 01/12/1998 01/04/2008 21/07/2008 01/04/2016 01/03/1998
Project - End Date (Latest Approved End Date) 31/03/2023 31/03/2021 01/06/2026 30/04/2025 31/12/2026 26/11/2021 30/04/2025 01/12/2030 29/03/2024 01/04/2032 31/03/2018 30/04/2028 30/06/2023 31/03/2041 Exempt under Section 35 of the Freedom of Information Act 2000 (Formulation of government policy, etc.) 30/04/2030 31/12/2041 27/09/2019 Exempt under Section 26 of Freedom of Information Act 2000 (Defence) 31/12/2035 31/03/2035 01/04/2024 28/02/2019 31/12/2024 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 11/07/2022 31/03/2020 25/03/2025 30/04/2025 31/03/2035 31/03/2023 31/03/2024 01/05/2035 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 03/07/2017
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The capability delivery schedule is subject to some risk as a result of poor aircraft availability. The delivery of the last 2 aircraft have been confirmed as moving to later dates. This will result in the aircraft being used to de-risk minor upgrades that will be brought into service before the final operating standard is delivered. The programme has continued to make steady progress against its principal delivery milestones this year (albeit with some slippage in two projects): • Flexible Service for Regulars has gone live on schedule in April 2019. • The Enterprise Approach project remains on track to deliver a cost benefit analysis and outline operating models for three case study areas in Cyber, Complex Weapons and Logistics. This will enable further development, working with industry, of interventions aimed at reducing the skills gaps across the Defence enterprise to be trialled later in the year. • The Future Accommodation Model Project achieved approval for pilot go-live in Autumn 2019 (nine months later than originally planned) following significant additional work to improve pilot affordability and longer-term project benefits delivery. • Following a review of the New Joiner Offer project’s extensive analysis and policy work a decision was made in May 2018 to close this project and develop the opportunities it had identified through two new projects. These will focus on reform of the Early Departure Payment and delivering continued improvements to the pay structure for all Service personnel through the next Quinquennial Review of pay structures in the Armed Forces due in 2021. The Early Departure Payment Project has recently been slowed down to release people to work on higher priority issues across the Defence People area. The main risk to successfully meeting the revised programme schedule remains securing adequate resources to deliver the programme (both financial and many of the skills required remain scarce). The competitive Assessment Phase (AP) completed on schedule and to budget in Jan 19. If the Review Note is approved, the intention is for an extended Assessment phase to inform a main gate business case in Q3 2020. IOC remains in 2025. The programme is well-placed to meet its schedule. The concurrent Demonstration and Manufacture phases add significant risk to the programme; this is being managed. IOC remains July 2020. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The Programme is achievable against a 2020 target and continues to make good progress on the critical path activities. The Programme has exceeded the SDSR10 targets to return 50% of Service Personnel from Germany by 2015 and must return Service Personnel and their families to the UK in summer 2019 to achieve the 2020 target. Boat 4 is scheduled to enter sea trials this year. This is behind schedule, and a reapproval is being sought.. Forecast delivery of Boats 5-7 remain inside their respective approvals. Overall the CEPP Enterprise remains on schedule to achieve Initial Operating Capacity (IOC) in Dec 20. Significant milestones have been achieved during this period, with IOC(Landing Platform Helicopter) declared in Aug 18 and commencement of Phase 1 of Flying Trials in Sep 18. This is a major step for the programme, bringing together F-35Bs (and helicopters) to the deck of QNLZ for the first time. This met the milestone set in 2013. However these successes should not disguise the fact that the schedule to IOC(CS) remains extremely taut. Robust risk management will continue to be necessary to ensure milestones are met and the Programme moves from Delivery to Generate/Operate. Project milestones with RED RAG, recovery plans implemented and co-ordinated with Royal Navy to assure that revised schedules support operations and critical future infrastructure requirements. On track to deliver the planned efficiencies from the Complex Weapons Portfolio Schedule. Release 2 delivered later than expected due to complex nature of delivery. Release 3 was re-scheduled and delivered in the forecast timescale. Subject to approval Release 4 delivery deferred to 19/20 & 20/21 due to dependancies. The CPC schedule has remained stable throughout 2018. Delivery of cores to the Submarine Build programme remains on track to meet Required in Yard dates. Programme management activity addressing schedule risk has been undertaken. It alters the route to the approved IOC (Initial Operating Capacity) milestone however, it does not alter the planned schedule deliverables or date. Following MOD approval, delivery is on schedule to Baseline Version 8, any future changes are subject to robust change control. The priority remains to deliver the build schedule in order to ensure HMS Dreadnought will be on patrol in the early 2030s through the active identifiaction of risks and the prosecution of opportunities. Assessment Phase remains on schedule with competition underway. Delivery schedule of the vessels will be confirmed at Prime Contract Award. All key milestones remain within 50% confidence levels approved by the Internal APrrovals Comittee in Jun 16. Main focus is the negotiation for the first satellite and establishing a contract for a new long-term Delivery Partner. The current Interim Support Partner has been extremely effective in mitigating MOD’s lack of suitability qualified and experienced personnel and has alleviated some of the manpower shortage issues currently being borne due to constraints in recruiting Crown Servants and the lack of in-house SATCOM expertise. There is no deviation expected against the current schedule. Exempt under Sections 35 and 43 of the Freedom of Information Act 2000 (Policy Development and Commercial Interests respectively) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) The MOD has identified LE TacCIS as one of the most important change programmes in the Land Environment and is investing accordingly. The Department will become significantly less reliant on large prime contractors and the 'lock-in' that can result. This new approach therefore represents the best value means of Defence retaining an operational advantage. The funding in later years ensures that new capabilities will be evolutionarily developed so that information advantage is not lost. The programme is executed to a robust risk adjusted schedule following ISS scheduling standards and closely managed between the Army HQ Programme Management Office and the BATCIS Project Support Office. The programme schedule performance risk is briefed at the appropriate governance boards and continually reviewed with risk of delay escalated where necessary. The programme schedule enables the correct activity to be initiated, managed and tracked across the DLoDs to ensure the evolutionarily capability LE TAcCIS will deliver can be effectively integrated into the Front Line Commands. Despite challenges the Lightning Programme remains on schedule to meet all major Programme Milestones. Main Gate Business Case Schedule changed in 2017 to reconcile Joint Forces Command affordability: first aircraft delivery slipped right from April to October 2019. Capability milestones remained on track for delivery, but with increased risk especially to Initial Operating Capacity (1 April 20 at 50%). The ISD for RFA Tidespring was achieved on 14 December 2017.  Tiderace is expected to achieve ISD in late 2018.  The programme to deliver the final two ships to their ISDs, and achieve Full Operating Capability (currently planned for October 2018), is under review and will be subject to an IAC Review Note. The programme is scheduled to deliver Initial Operating Capacity 2 months and Full Operational Capacity 18-24 months ahead of our Approval dates (30 Jun 19 and 31 Dec 24 respectively). Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The programme remains on target to deliver Contract Award for the Productivity & Collaboration Project by Dec 19, and the End User Services Project by July 20. New Office 365 capabilities have been paused to release resources to priority projects. Defect remediation of Secret post testing has not progressed as planned and is delaying Secret United Kingdom project delivery, this is also adding further delay to the MODNet Secret Overseas delivery. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 24 of Freedom of Information Act 2000 (National Security) The re-baselined programme has caused a delay of Interim Operating Capability to Nov 2023 and Full Operating Capability to October 2025. Queen Elizabeth conducted succesful Lightning (F-35B) flying trials Phase 1 enabling reduction in Phase 2 trials. Prince of Wales build focused on schedule to constrain build cost over-run, prioritising acceptance criteria. Whilst SFU is currently on schedule to achieve IOC in 2020, there is significant risk to this milestone from the emergent technical issues and availability of sparse ships & submarines to support trials. Resolution of the technical issues is ongoing through additional engineering activity and asset availability for trials is being mitigated through senior prioritisation within MoD. The challenges to transition of SFU into service, via a new Combat System interface and torpedo support arrangement, are being managed through primarily commercial activity which cannot be commented on in depth. Should a future delay emerge to transition of SFU into service, the MoD is working with Industry Partners to maintain appropriate availability of the Royal Navy’s submarine launched torpedo On track to deliver contract dates but consumption of float in the schedule is higher than expected, with joint actions now agreed to mitigate Key risks. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Full Operating Ccapability achieved against 90% approvals date. Some peripheral functionality (Tactical Party equipment) deferred to 19/20 and 20/21 to align with Annual Budget Cycle 18 enhanced dissemination option (Falcon and Information Exchange Programme connectivity).
2018/19 TOTAL Baseline £m (including Non-Government costs) £118.42 £27.27 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £627.86 £64.17 £630.32 £502.51 £1.86 £161.19 £726.25 £7.87 £182.30 £104.86 £201.05 £1,505.63 £1.97 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) £273.66 £803.33 £186.19 £25.53 £125.71 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £1,065.18 £64.24 £258.07 £38.69 £432.15 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £0.00
2018/19 TOTAL Forecast £m (including Non-Government costs) £95.29 £22.53 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £542.50 £42.79 £499.58 £479.79 £1.82 £155.07 £778.15 £9.12 £182.30 £104.86 £85.35 £1,339.29 £1.97 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) £251.70 £786.50 £177.90 £25.53 £108.22 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £1,039.76 £52.72 £249.43 £37.90 £430.85 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £0.28
2018/2019 Variance %age -20% -17% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) -14% -33% -21% -5% -2% -4% 7% 16% 0% 0% -58% -11% 0% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) -8% -2% -4% 0% -14% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) -2% -18% -3% -2% 0% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 100%
Whole Life Cost TOTAL Baseline £m (including Non-Government costs) £3,394.89 £69.65 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £6,291.94 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £2,059.26 £9,970.77 £21.57 £1,771.62 £26,034.99 £146.73 £1,659.23 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £1,166.87 £30,060.07 £11.78 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) £11,142.64 £10,475.19 £2,048.90 £618.81 £1,807.59 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £19,895.89 £1,039.25 £6,797.64 £413.89 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) £1,117.73
Departmental narrative on budget/forecast variance for 2018/19 (if variance is more than 5%)  The key activities driving the variance are as follows; Production: Forecast reduction due to efficiency trials at Woodbridge, improved contractor performance, and revised estimate of costs for programme trials. Additionally there have been front line activities to review and reduce the forecast costs. Support: Efficiencies in the support contract have resulted in a decrease in the forecast. There has been an improvement in contractor performance - early delivery of engine spares. Training: Firm contract costs have revised the forecast. Front line efficiency reviews have deferred activity. Forex rate fluctuations has impacted all three areas. The underspend has been caused by: the early closure of New Joiner Offer Project, lower than expected costs for IT changes required by the programme, lower than expected spend on external assistance for Future Accommodation Model and higher than planned vacancy rates across the programme. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Programme has experienced delays in Demonstration and Manufacturing Phases. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Variance due to the re-scheduling of work due to contractor's revised estimate of delivery and in line withagreed schedule and projects moving to Defence Estate Optimisation Programme (including Kendrew, Upavon, Leuchars and Dreghorn). Budget variance less than 5% Budget variance less than 5% Budget variance less than 5% The In-Year variance reflects the costing challenge set by the Department plus investment in Future Technologies, Stormshadow MLR (mid-life refurb) on Typhoon and minor movements including FOREX across the programmes. Funding profile changed due to deferal of activity to 19/20 & 20/21. Forecast in 18/19 changed to reprofiling of funding and deferral of activity from previous years. Budget variance less than 5% Budget variance less than 5% The variance has been caused by a change in scope, cost estimates and delivery plan. The change has occurred due to a whole programme review (referred to reprioritisation) and a move towards a programme maturity point. It is worth noting that although Q2 succeeds FY17/18 the baseline forecast was frozen, prior to Q2, whilst the programme underwent the change process. Reduction in forecast driven by accounting treatments, revised US costs and delayed Supply Chain commitments. Budget variance less than 5% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Sections 35 and 43 of the Freedom of Information Act 2000 (Policy Development and Commercial Interests respectively) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Financial Year 2018/19 in-year variance of £21.9M underspend, is mostly due to competition efficiencies, retirement of risk and scheduling changes to a number of projects. Budget variance less than 5% Budget variance less than 5% Budget variance less than 5% The variance detailed above has been driven by slippage in the asset reprovision programme, and has been managed through the Annual Budget Cycle process into later years. The programme remains affordable in profile and through-life. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Budget variance less than 5% Variance attributable to increase in Joint Forces Command Infrastructure costsings and movement in the foreign exchange market rate. Budget variance less than 5% Budget variance less than 5% Budget variance less than 5% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Some peripheral functionality (Tactical Party equipment) deferred to 19/20 and 20/21 to align with Annual Budget Cycle 18 enhanced dissemination option (Falcon and Information Exchange Programme connectivity).
Departmental Narrative on Budgeted Whole Life Costs While changes have been made to the delivery, and therefore funding profile, these movements are within the whole life costs of the programme - changes are negligible. Programme Whole Life Costs are yet to be finalised. This reflects the still relatively early stage of work in the Armed Forces People Programme projects, where the scope of the solutions that they will ultimately deliver/implement are yet to be agreed. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) These costs are solely for the AJAX project which will deliver the Demonstration, Manufacture and In Service Phases for the AJAX family of armoured vehicles and the associated training systems. The figures are fully and independently assured. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The whole life forecast has been extended beyond the end of the programme mandate (31 Mar 2021) as some projects (Kendrew, Upavon, Leuchars and Dreghorn) were delayed as ARMY refined its requirements at those locations due to impact by Defence Estate Optimisation Programme (DEOP). Capital expenditure for these projects beyond Mar 2021 will be transferred into the Army’s Infrastructure Programme (AIP). The budgeted cost line reflects the current Astute Boat 1-7 Control Total. This is still closely aligned to the costed position and hasn’t been uplifted to reflect the 2018 Reapproved position. The approved budget for Boats 1-7 is £10,758M. These costs represent the marginal costs of running the CEPP Programme Management Office. The budget variance reflects the Department’s initiative to reduce operating costs> Individual programme costs for the CEPP Enterprise are reflected within their own Data Sets. Infrastructure on track to be delivered within the Whole Life Cost Budget over the duration of the Clyde Infrastructure Programme. The Complex Weapons programme provides weapons to all 3 Services. Costs are for missiles and their In-Service Support, across the CADMID (Concept, Assessment, Demonstration, Manufacture, In-Service, Disposal/Termination) cycle. Whilst individual constituent weapons programmes have a finite life, the overall programme does not - it is assumed it will continue to deliver all Defence's future Complex Weapons needs within a pipeline of funding that, broadly, increases annually in line with inflation. This accounts for the annual step up in Whole-Life Cost as the programmes life increments by another year. The budgeted whole life costs are not forecast to exceed the approved total. The Ministry of Defence is working with industry to agree an overall funding approach for the Core Production Capability. Following a HMRC ruling, VAT is now applicable to the whole programme. This was identified as a risk in the business case and accounted for within the approved cost envelope. Therefore, the programme remains within its Approved Budgetary Limit. Since Q2, the Programme has undertaken a reprioritisation exercise, in order to improve affordability and deliverability, and build on local authority engagement on future use of planned disposal sites. This has led to the approach of delivery in waves of activity. With the first wave being affordable, programmed and underway. The whole life costs is for the acquisition of the submarines and associated additional infrastructure, beyond that currently in place for the Vanguard class, and the balance between the current in-service costs and those estimated to support the new boats. Current finances represent the allocation against the Programme Assessment Phase. The future Design and Manufacture phase budget will be commercially sensitive until the competition phase concludes and Prime Contract has been awarded(currently scheduled in 2020). Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Sections 35 and 43 of the Freedom of Information Act 2000 (Policy Development and Commercial Interests respectively) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) The MOD has identified LE TacCIS as one of the most important change programmes in the Land Environment and is investing accordingly. The Department’s aim to become significantly less reliant on large prime contractors and the resultant 'lock-in' should represent the best value means of Defence retaining an operational advantage. Furthermore, moving the LE TacCIS programme to smaller incremental capability changes will reduce financial risk and enable better management of Whole Life Costs. The forecast whole life costs continue to deliver the following: a. Production of main phase of approved a/c buy due to be completed in 2024 (Includes Aircraft and Equipment procurement). b. Through life capability development and obsolescence management. c. Delivery of unique sovereignty capabilities. d. UK contribution to production, sustainment & follow-on development. e. UK development & integration (including Ship, Weapons and Main Operating Base). f. UK participation in Initial Operational Test & Evaluation g. Through-life programme sustainment h. Defence Infrastructure Organisation Infrastructure. Current cost model based on business case position (initial purchase of equipment and first 4 years of support). Whole Life Cost Model under development by the Defence Equipment & Support delivery team. The profile for the Budgeted whole life costs has changed to reflect the delay in the MARS Tanker build. (A clerical error is believe to have occurred while profiling the delay in build) This remains within the original approval figures. The programme remains affordable in profile and through-life. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 27 of the Freedom of Information Act 2000 (International Relations) Joint Forces Command confirm that Programme is affordable. The Whole Life Cost is currently being re-assessed, the outcome will be promulgated in the review note requesting a new approvals limit Baseline whole life costs are taken from the review note costs for the Assessment, Demonstration and Manufacture phases. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Only costs to Full Operating Capability (FOC) are represented; mid life obsolescence work planned for the next decade are not.
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The IPA Annual Report publishes the whole life cycle costs on projects, based on figures from their Business Cases, whilst the National Infrastructure and Construction Pipeline (NICP) focuses primarily on the upfront capital investment on a project. Where both documents refer to the same projects, this distinction will be the principal reason for any differences in the data sets published. Other government publications may use different methodologies to derive cost figures Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set Not set