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MOD Government Major Project Portfolio data, September 2017 (CSV)

Updated 4 July 2018
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Project Name A400M Crowsnest Programme MARSHALL Maritime Sustainment Programme Nuclear Warhead Capability Sustainment Programme Queen Elizabeth Programme Spearfish Upgrade Programme Type 26 Global Combat Ship Programme WATCHKEEPER Wildcat Programme Carrier Enabled Power Projection Logistics Commodities Services Transformation Astute Boats 1-7 Complex Weapons Core Production Capability Lightning Programme DREADNOUGHT Army Basing Programme The Materiel Strategy Armoured Cavalry 2025 Armoured Infantry 2026 Contracting, Purchasing and Finance Future Beyond Line Of Sight New Style of Information Technology (Base) Armour MBT 2025 Land Environment Tactical Communication and Information Systems Maritime Patrol Aircraft PROTECTOR New Style of Information Technology Deployed MODnet Evolve Joint Crypt Key Programme Type 31e Armed Forces People Programme Defence Estate Optimisation Mechanised Infantry Programme Fleet Solid Support Future Maritime Support Strategy
Department MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD MoD
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 MPA Annual Report) Amber Amber Red Amber/Green Exempt under sections 24 & 26 of the Freedom of Information Act (2000) Amber Amber/Red Amber/Green Amber Amber/Green Amber Amber/Green Red Amber Red Amber/Red Amber/Red Amber/Red Amber/Green Amber Red Amber/Red Amber/Red Amber/red Amber Amber/Red Amber/Red Red Amber/Red Amber Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Amber/Red Amber/Red Amber Amber Amber/Red
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. Equips 10 Merlin Mk2 helicopters with an advanced airborne surveillance system to meet the requirement for early threat warning and co-ordination of 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. 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. 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. 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. The Wildcat aircraft 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). 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. Logistics Commodities and Services Transformation (LCST) programme provides commodity procurement, storage and distribution services for the Armed Forces. It will deliver significant benefits from the introduction of a streamlined, integrated, flexible and modern logistics service. The design, development and manufacture of up to 7 Astute class submarines. To realise an affordable and dynamically adaptable military Complex Weapons capability which protects sovereignty, assures operational advantage and contributes to prosperity. 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. 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. The design, development and manufacture of 4 Dreadnought Class ballistic missile 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 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. 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 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. To upgrade and extend service life of the Challenger 2 Main Battle Tank, a key part of the Army's capability through to 2035. 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. 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 PROTECTOR Programme will deliver a future UK capability for deep and persistent armed surveillance, target acquisition, and reconnaissance. The provision of an IT system which will deliver operational information service to Land, Air, Maritime and Joint users in all physical environments. 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 support the Departments Information Assurance Capability 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.ÿT31e 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. 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. 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 œ4.0bn 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 œ4Bn by 2040. 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 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). 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.
Departmental commentary on actions planned or taken on the IPA RAG rating. The Programme is on track to meet all the planned outputs but carries risk against certain capabilities and the delivery of those against the current Milestones. During summer 2017, ADS announced the initial results of their Global Rebaselining activity, with further details in Nov 17, and work is underway to fully understand the affect of those changes on the UK programme. Delivery confidence remains Amber as ongoing schedule challenges means the programme requires constant management attention to deliver. Marshall continues to meet its Cost and Perfomance criteria, however lags the Time approval by over 24 months. Re-approval has been sought from the Investment Appraisals Committee (IAC), which will allow Marshall to re-baseline and enable contract relet. Benefitting from 3 years of experience, it is planning to reset the contractual baseline to a taut, realistic and deliverable schedule. As the project moves into the final phase of the shipbuild programme in Korea and the planning for the drawdown of the on-site team, the focus for the project is now on the UKCCATS elements back in UK. As part of the action plan the requirements for the programme evaluation plan and and the programe closure are being assessed. The Project Team is currently working with the Customer to finalise Full Operating Capability (FOC). Exempt under Section 24 of Freedom of Information Act 2000 (National Security) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Of the 6 recommendations contained in the IPA Review 3, those regarding First Entry to Portsmouth (achieved on 16 August 17), a dedicated Pogramme Director for QEC and inclusion of QEC in the Common Support Model, are complete. Progress against the remaining recommendations is on-going and will be reviewed during the IPA Review planned for 5-9 Mar 2018. Delivery Confidence Assessment is primarily affected by: Technical issues experienced during trials, may necessitate Design change(s) to make improvements. Continuation of surface launched trials continue to facilitate development of systems software. Successful HMT/MPRG approval and manufacture contract award (batch 1) achieved Jun 17 Next IPA Gateway Review (GW4) planned for May 18 to assess readiness for service. The programme is now all but complete with all aircraft delivered and Synthetic Aircrew Training Equipment close to being complete. The capability is firmly in the Business As Usual space, having achieved its forecast milestones and the programme is initiating closure. Delivery of the Programme remains challenging as we transition from the ?build phase? of the projects, through trials and testing into operational service. Contractor sea trials for the first carrier, HMS Queen Elizabeth, commenced in Summer 2017,and further planned trials continue. HMS QNLZ is due to commence a planned capability insertion period in spring 18, prior to sailing to the the US for Fixed Wing Flying trials. HMS PWLS was sucessfully floated out from dry dock in Dec 17. Pending evidence from successful sea trial and successfull completion of the CIP, Programme delivery confidence will likely remain Amber. The Department will need to be wary of increasing delivery risk by adding activity to an already taut schedule. As recognised in the NAO Report into ?Delivering Carrier Strike?, and evidenced in the IPA Review of CEPP in Feb 18, the top CEPP Risks are being actively managed and mitigated through robust governance and programme controls that ensure coherence of the core projects and their key dependencies with the rest of Defence. Delivery Confidence remains Amber/Green with the revised IS project plan developed collaboratively by the MoD, DP and Boeing Defence UK currently on track. Service quality to Front Line Commands and Project Teams remains high with performance targets for On-Time-In-Full Immediate, Priority and Routine demands all being achieved. Improved Governance brought about by the introduction of the Defence Nuclear Organisation and the Submarine Delivery Agency has started to pay dividends with improved awareness and engagement among stakeholders. The most recent Infrastructure and Projects Authority Projects Assessment Review conducted in February 2018 reports the RAG as Amber. Work continues on the Action Plan drawn up by the SRO in response to the June 2017 PAR, with progress being monitored by the IPA. Good progress is being made on the 'Essential' and 'Recommended' actions. Most 'Critical' recommendations have been addressed; however, the recommendation that the headcount resourcing shortfall be resolved remains intractable, despite ongoing, continuous focus on the issue, and it remains a significant cause of risk to successfully delivering the programme's outcomes. The 'Red' Delivery Confidence Assessment is due to a Forecast Cost At Completion (FCAC) in respect of the original Scope of Work. Good progress has been made against all Infrastructure and Projects Authority's Project Appraisal Review recommendations. The MOD is considering the overall funding approach to the Core Production Capability. Delivery confidence within the Lightning Programme remains AMBER/RED following a downgrade by the SRO in the last quarter to reflect the significant challenges that exist within a taut schedule. Following significant cross-party effort, progress has been made around UK weapons integration to deliver Initial Operating Capability (IOC). Similarly, although representative simulator training remains as a key risk, the OEM are proposing mitigations which will provide the necessary training to our pilots. Further pressure remains in our Operational Test area, where there is a continued need to ensure that our Test teams have appropriate early access to capabilities; together with DE&S DT Lead, the Team continues to successfully progress these issues with US authorities. The continued uplift of DE&S personnel into the DT is very positive, and, whilst it will take some time to ensure they are fully trained and familiar with this complex programme, will offer enhanced capacity and strategic depth for the UK F-35 enterprise. The standing up of the Defence Nuclear Orgaisation, Submarine Delivery Agency and the formation of the Alliance (MOD, BAE Systems and Rolls-Royce) will improve the collective performance of the Dreadnought submarine programme. The IPA concluded a Project Assurance Review of the Army Basing Programme(ABP) in late Sept 17 and the current uncertainty around timely approval for the Salisbury Plain Training Area Service Families Acommodation project led the Infrastructure Projects Authority to downgrade the Programme?s delivery certainty to AMBER/RED. Approval of the Main Gate Business Case by the Treasury and subsequent contract award in Nov 17 the Infrasutructure Projects Authority concluded 19 Jan 18 the programme was now Amber. A comprehensive Transformation Implementation Plan for FY 16/17 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. An Integrated plan for FY17/18 was developed to implement the changes across DE&S and deliver the expected benefits. This plan is on track and the programme is well on its way to delivering improvements in business maturity and realising the financial savings. The Delivery Confidence Assessment for the Programme has remained steady since the programme's inception. The overall programme Delivery Confidence will be reviewed once the re-cast of the AJAX equipment contract has been formalised. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) ÿA number of the recommendations from the review have been addressed, but until a way forward for delivery of the sourcing solution has been determined and a potential Review Note and ICT submission agreed then the delivery confidence remains Amber/Red. The Sep 16 IPA Assurance of Action Plan (AAP) raised 6 recommendations; all were accepted and are being actively implemented and managed. Those that are critical were: Establish delivery of the capability on to a programme footing which is being driven by Joint Forces command through establishing an SRO Support Team to start work in Jan 17. Manage the governance and transition from BLOS (current capability) to FBLOS (future capability) which is being managed through monthly BLOS/FBLOS governance meetings. Acquisition Partner to be appointed ASAP, which has not yet been appointed, although is being augmented through the Framework Approach for Technical Support (FATS) to provide immediate resource uplift. In June 2017 NSOIT(B) was assessed by the IPA as Amber. An action plan has been developed to address the 8 recommendations made, 5 of which have been successfully implemented. The remainder are being actively managed. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The MOD is accepts the recommendations made in the IPA review of the LE TacCIS programme in Oct 17 and is working to address them. Delivery confidence has remained at Amber/Red this quarter, due to the significant number of dependencies within the MPA Programme, and to improve to Amber, assistance will be needed in a number of areas. Coordination of the infrastructure work at RAF Lossiemouth, which covers a number of different projects including P-8A, will be improved now that this work has been put onto a programme footing and with the appointment of a Senior Responsible Owner. Work to construct the P-8A strategic facility has now commenced, and very significant progress continues to be made on the other programme fundamentals, especially cooperation with other allies who are also acquiring the P-8A (US, Norway and Australia); these nations continue to offer staunch support to the UK. A financial review, re-baselineing of the programme and contract negotiations have been conducted. The programme is now subject to an ABC18 Option to deliver against a new financial profile. This will lead to IAC Approval and the issue of a new mandate in due course. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Actions in progress. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Key actions to improve IPA RAG include resolving programme resourcing and budget issues (including filling some key posts across the programme) and reviewing/agreeing the way forward for the New Joiner Offer(NJO) project. Focus this quarter has been on initiating arrangements for regular challenge, assurance and support between programme and sub-programme SROs and increasing the maturity of programme management and identifying emerging risks at programme level. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Since the IPA assessment in Jun 17, access to programme management skills and resource has been improved through co-location of the programme team with other platfrom programme teams within Navy Command (Type 26, Type 31e). DE&S project team recruitment has improved with a focus on specific key posts and use of contracted support. Release of some of the experienced personnel from MARS Tanker has been achieved, with the transition of further posts now clearer as MARS Tanker project closure timeline matures. IPA Actions from the recent PVR are being progressed, no major items remain outstanding.
Project - Start Date (Latest approved start date) 17/05/2000 31/03/2013 03/04/2006 25/07/2005 01/04/2008 01/12/1998 01/04/2008 21/07/2008 01/03/1998 01/12/2001 31/01/2011 01/08/2011 17/03/1997 31/03/2008 01/04/2012 01/10/2001 14/04/2011 22/05/2013 02/05/2011 22/01/2014 04/12/2014 01/12/2011 01/01/2011 01/04/2015 04/12/2014 01/05/2013 08/07/2014 30/04/2009 01/04/2015 29/02/2016 Exempt under Section 26 of Freedom of Information Act 2000 (Defence) 01/04/2016 25/11/2015 30/09/2016 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 14/03/2016 26/09/2016
Project - End Date (Latest approved end date) 31/03/2023 30/06/2023 04/10/2020 28/02/2019 30/04/2025 31/03/2023 31/03/2024 01/05/2035 03/07/2017 31/05/2016 01/12/2030 01/02/2018 31/03/2024 01/04/2032 30/04/2028 31/03/2035 Exempt under Section 35 of the Freedom of Information Act 2000 (Formulation of government policy, etc.) 28/11/2022 16/05/2018 30/04/2025 31/12/2026 31/03/2018 31/12/2041 05/03/2018 01/06/2026 31/12/2035 01/04/2024 31/03/2035 25/03/2025 TBD Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 31/03/2021 31/03/2041 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 30/04/2030 27/09/2019
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The forecast end of the programme may be extended. During summer 2017, ADS announced the initial results of their Global Rebaselining activity, with further details in Nov 17, and work is underway to fully understand the affect of those changes on the UK programme. The Transfer of Title of the UK's 18th aircraft took place on 11 Oct 17. Key programme milestones remain unchanged. Marshall has now failed to meet its contracted Initial Operating Capability (IOC) milestone, and has sought re-approval from the IAC. Learning from experience will allow Marshall to progress on a more realistic and deliverable footing. Ship 1 ( Tidespring ) has now achieved In-Service Date (ISD) with Ship 2 now completing its UK Customisation. Ship 3 has begun its delivery voyage to the UK andÿShip 4 has completed her Build Trials (CSTs) . Delays experienced on Ship 1 ÿhave been managed during the build and customisation of ÿShips 2 to 4, reducing the impact of the delay during ÿShip 1 Build. The Project Team is currently working with the Customer to finalise Full Operating Capability (FOC). Exempt under Section 24 of Freedom of Information Act 2000 (National Security) Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Queen Elizabeth's ships staff moved on board on 4 June 17 and she sailed from Rosyth, achieving her Ready for Sea date milestone on 26 June 17. She achieved First Entry Portsmouth on 16 August 17 following the first phase of contractor sea trials. Project end date remains unchanged however emergent technical issues have resulted in a rescheduling of the trials plan with extra trials added in as a de-risking measure. Associated submarine interface has progressed with the successful approval of the Initial Gate Business Case (IGBC) which will release funding to develop the initial solution prior to the Main Gate Business Case (MGBC) being submitted to fund the production and final design. Early contract milestones on track to deliver Conditions for Full Operating Capability (FOC1) Milestone in Nov 17 were partially achieved but a decision was made to not declare FOC until a Release to Service has been achieved (now forecast for summer 18). WK incidents in early-2017 and the subsequent investigation and rectification work impacted on planned activity in 2017. Investment Approvals Committee and Infrastructure Projects Authority have been informed of the delay. The programme is on track to achieve Full Training Capability for both Army and Navy Wildcat variants within planned timescales and good progress continues towards delivery of the Full Operating Capabilities. The Project ?baselined? end date remains December 2030. However, the current forecast end date is December 2026, reflecting the point at which the Full Operating Capability of CEPP is planned to be achieved. The Amber RAG status reflects the significant risks and issues which exist in a number of areas, plus the technical challenge of taking a ?first of class? complex warship to sea for the first time. This rating was confirmed by an independant IPA Review of the CEPP enterprise in Feb 18. The objectives issued by the SRO through his Executive Programme Board are the key to improving the Delivery Confidence Assessment and keeping the programme on schedule, by promptly addressing the risks and issues. This appears feasible at this stage. The programme has overcome early IS technical challenges and is progressing to plan. Joint Integration Testing is all but complete and the project is now moving into User Acceptance Testing. Storage distribution and freight stock migration will be enabled in Apr 18, and full commodity demand planning in Jul 18. The Defence Fulfilment Centre will achieve Full Operating Capability in Mar 19 with a Full Service Commencement Date (FSCD) of 31 Oct 19. Boat 4 has launched and will depart Barrow in 2018. Having conducted a comprehensive cost and risk analysis across the Enterprise, it is intended that approval will be sought to deliver Boats 5-7 at revised but realistic schedules. While broadly stable throughtout 17/18, delays to the programme have historically been caused by a combination of factors including Industrial performance and also the late provision of essential components to the Build line (Both Industry and MOD have in the past been liable). The Operational Handover dates sought in the forthcoming Whole Programme Review have been subject to comprehensive Schedule Risk Analysis. The Complex Weapons programme remains on track to deliver its outcomes and benefits. The CPC schedule has remained stable throughout 2017. Delivery of cores to the Refuel and Submarine Build programmes remains on track to meet Required in Yard Dates. The schedule for the UK F-35 Programme is taut, but remains on track to deliver UK IOC by Dec 2018, and also remains on track to deliver IOC-Maritime and Full Operating Capability. Delivery Phase 2 (DP2) is the phase in which the design will substantially reach maturity, and in which build activity will escalate significantly: Boat 1 outfitting will commence in the new Central Yard Complex and the fabrication of units for Boat 2 will start. The priority during this phase will be to protect the build schedule in order to ensure Boat 1 will be on patrol in the early 2030s. The Programme has exceeded the SDSR10 targets to return 50% of Service Personnel from Germany by 2015. To date almost 16,400 service personnel (82% of the planned total) have returned to the UK, 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. The ABP has been impacted by the Better Defence Estate (Nov 16) announcement and the emerging detail of Army 2020 Refine, leading to financial re-profile and programme schedule re-baseline. Further work to refine continues with several projects expected to retire, with the focus remaining on delivery of critical ?live and eat? infrastructure. The programme is on plan to meet all 17/18 milestones. The programme end date is aligned to the end of the Managed Service Provider Contracts. The programme is running a concurrent Demonstration and Manufacture Phase, which adds significant risk to the programme; this is being managed. IOC is not affected at this stage and remains Q2 2020. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) CP&F Release 2 (Initial Opperating Capability) went live in December 2016 and is now operating as Business as Usual. Given the complexity of the system cut-over and transition to the new ways of working the delivery of IOC capability has been a significant step forward for the MOD. A settlement has been reached with IBM for Release 2 Impact Notices. In line with the Programme Board decision and Information Note circulated in August 2017 the phased delivery of the remaining CP&F work packages began on the 11th September 2017 with Demand Capture and Contract Management. The affordability issue in 18/19 due to the slippage of Release 3 (R3) delivery timescales and milestone payments into 18/19 has been addressed within the TLB in relation to Demand Capture and Contract Management. A solution and plan to deliver sourcing needs to be agreed as sourcing is a critical element of the CP&F Programme and underpins delivery of the benefits. Financial challenges will need to be addressed related to affordability and potentially additional funding to deliver the remaining work packages. All key milestones remain within 50% confidence levels approved by the IAC in Jun 16. Continued focus on onboarding the Interim Support Partner in Q1 2018 and the full Acquisition Delivery partner in Q2 2019. This is expected to alleviate some of the SQEP shortage issues currently being borne due to constraints in recruiting Crown Servants and the lack of in-house SATCOM expertise. At the end of September 2017 although a third of Official users (inc a similar number of Devices) had beeen migrated from the legacy IT system (DII) to MoDNET, migration performance by the supplier has not kept pace with the planned delivery schedule. The supplier schedules for the delivery of Secret UK and Overseas sites were baselined and actively monitored by MoD but forecast delivery dates are behind original planned dates. There has been no deviation to the competitive assessment phase. The programme is running in accordance to the planned schedule. The programme has refined its long-term design this year and split into 2 tranches - the first to undertake technical and business transformation to enable open architecture and open competition - effectively achieve a baseline for future evolution - and the second tranche to spirally evolve capability over time. The programme is on schedule as planned. There has been no change to any of the programme milestones or the overall programme schedule. The details of the build-up of the MPA force have not been publicly revealed for security reasons. Initial Operating Capability(IOC) and Full Operating Capability(FOC) based on MGBC are not deliverable. A revised IOC and FOC are subject to an ABC18 Option. Out of Service Date is based on revised IOC and FOC dates. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) The original aim was to start procurement of the first three elements of the MODNET EVOLVE programme: Future Operational Service Management (FOSM), Productivity and Collaboration (P&C) and End User Services (EUS) concurrently. The IAC also directed the SRO to conduct further studies into the balance of OFFICIAL versus SECRET (O v S) ICT provision and into the opportunities for greater convergence with other government programmes whilst ISS was also directed to develop a transition and exit roadmap for the ATLAS contract. The emerging outcomes from the aforementioned work, including the ongoing development of the transition and exit roadmap for the ATLAS contract, have resulted in a delay to the procurements described in the IGBC with a consequential impact on MODNET EVOLVE sequencing and timeframes. The primary drivers for the changes to the programme are: an increased understanding of the complexities to exiting the NSOIT(B) contract; ISS? capacity to deliver multiple simultaneous procurements and transitions; and the need to deliver a stable MODNET platform from which to exit and transition in new services. Accordingly, a revised sequence of procurements and associated timeline is being developed to appropriately balance these drivers for change. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The programme remains broadly on track to meet its principal delivery milestones but tight timelines and delays in agreeing resources mean there is risk in successfully meeting these. Nonetheless, the four projects in AFPP (Future Accommodation Model (FAM), Future Engagement System (FES), New Joiner Offer (NJO), and Enterprise Approach (EA) ? have all made progress on developing their policy design and concepts and overall delivery timescales remain feasible: FES-related legislation commenced its passage through Parliament (and recently completed its Report Stage in the House of Lords; FAM was considered by the MOD Investment Approvals Committee and will probably down select its options for its pilot phase; for NJO, works ongoing to refine and model the policy options that are due to be presented to key stakeholders for final decisions over course of the autumn. EA completed its review of its overall approach for the rest of its concept phase, which will see work expanded to look at other critical skills areas. Not set Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Schedule remains extremely taut, with some Assessment Phase activities hampered through a delay in team recruitment and contracting of project technical support. Schedule currently under review. The risk adjusted schedule to IGBC is challenging but achievable with the AP scheduled to start 1 Apr.
2017/18 TOTAL Baseline œm (including Non-Government costs) œ173.39 œ65.83 œ114.04 œ46.82 œ1,013.69 œ401.08 œ41.05 œ392.94 œ0.98 œ6.22 œ1.77 œ62.28 œ541.08 œ736.16 œ182.96 œ935.45 œ1,004.66 œ417.34 œ79.41 œ512.00 œ80.95 œ13.50 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) œ26.51 œ279.49 œ12.74 œ150.27 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ15.20 Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ11.10 œ- Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ3.27 œ-
2017/18 TOTAL Forecast œm (including Non-Government costs) œ123.76 œ65.05 œ102.52 œ68.19 œ1,024.53 œ402.83 œ39.45 œ382.04 œ2.01 œ9.16 œ1.75 œ61.06 œ562.62 œ704.43 œ187.13 œ903.35 œ1,249.39 œ431.07 œ78.95 œ491.41 œ64.80 œ11.20 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) œ26.02 œ258.44 œ30.56 œ70.67 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ14.87 Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ24.56 œ- Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ3.27 œ-
2017/2018 Variance %age -29% -1% -10% 46% 1% 0% -4% -3% 105% 47% -1% -2% 4% -4% 2% -3% 24% 3% -1% -4% -20% -17% 0% 0% -2% -8% 140% -53% 0% -2% 0% 0% 121% 0% 0% 0% 0%
Whole Life Cost TOTAL Baseline œm (including Non-Government costs) œ3,519.16 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ1,854.82 œ596.38 œ19,894.38 œ6,705.64 œ416.61 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ1,117.73 œ1,607.27 œ21.58 œ640.44 ÿœ9941.96 œ22,179.52 œ1,585.10 œ10,109.38 œ31,497.93 œ2,001.57 œ379.06 œ6,258.19 Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ146.74 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) œ11,063.27 œ2,144.43 œ907.91 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) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ57.38 œ- Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) œ17.27 œ-
Departmental narrative on budget/forecast variance for 2017/18 (if variance is more than 5%) In Year, the favourable programme variance is as a result of the MOD efficiency measures and ADS compensation for previous late delivery, known as Liquated Damages. Budget variance less than 5% The variance in year (-œ11.5M) is principally due to delivery delays associated with the Marshall equipment modernization project. This does not effect the overall value of the programme, but requires funding to be re-profiled into later years, aligned to a revised delivery schedule. Budget v forecast variation driven by previous decisions in prior Financial Years, since Project Start date in 2011 resulting in profile changes in Budget and Forecast. This has had no impact on Whole Life Budget. Exempt under Section 27 of the Freedom of Information Act 2000 (International Relations) Exempt under Section 41 of Freedom of Information Act 2000 (Information Provided in Confidence) Budget variance less than 5% Budget variance less than 5% Budget variance less than 5% Elements of equipment testing delayed from FY16/17 into FY 17/18 resulting in variance from forecast. Variance: Reconciliation of contract prior to closure required minor adjustment to overall project costs including an incentivisation payment, noting that the programme as a whole remains significantly under approval. Budget variance less than 5% Budget variance less than 5% Not set Budget variance less than 5% Budget variance less than 5% Despite exchange rate adjustments now being delegated down for absorption in the Programme, the variance in budget remains within tolerence at less than 5%. Forecast includes additional œ233M uplift agreed with Defence Resources for the Dreadnought programme (including the Next Generation Nuclear Power Plant, excluding the Core Production Capability) for FY 1718. Budget variance less than 5% Budget variance less than 5% Budget variance less than 5% Variance of -20% is mainly as a result of the delays in the Warriot Capability Sustainment Programme Demonstration Phase. Forecast is less than budget this year due to deferral of Release 3 activity into future years. Focus is on delivering the Contract Management functionality this year, with Release 4 following later. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The in year Forecast is 13% lower than the Budget due to delays with the rollout of MODNET. The supplier has not kept momentum with the delivery schedule and subsequently progress made towards milestones has been slower than originally anticipated. MOD has not paid for services it has not received. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 17/18 IY Variance has been driven by œ21M underspend mostly due to retirement of risk, early delivery of some projects resulting in payments in the previous year and some scheduling changes to other projects. Budget variance due to re-profiling of aircraft deliveries Following JFC direction to make savings in years 0-2, recosting and reprofiling of the programme has led to significant underspend against the original 17/18 Control Total (CT) (predominantly due to the delay to the Equipment Procurment Plan delivery schedule). Against the new baseline, CT variance is largely due to FOREX movement, but has been offset partially by changes to the Letter Of Acceptance and Direct Commercial Sales 1 contract. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Budget variance less than 5% Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Budget variance less than 5% The AFPP is forecasting against the agreed FY15/16 budget for the programme and since then programme costs have increased. Key reasons for cost increases include the requirement for more detailed policy work and modelling than originally anticipated (on FAM); delays to policy making down-selection decisions for NJO; and decision to accelerate FES work to meet Parliamentary timescales. Budget variance less than 5% Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) Budget variance less than 5% FMSS was established without comprehensive funding through its life; an initial budget was allocated in three tranches for the Concept Phase, however further funding is now required. Costs have been higher than originally intended as the team have not been allocated sufficent civil service resource and have had to rely on more expensive Private Sector Support. Actions to provide future funding for remainder of Concept Phase and Assessment phase is in hand.
Departmental Narrative on Budgeted Whole Life 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, the strategy for the utilisation of Liquidated Damages (LDs) is still being considered, and the long term support costs arising from any capability insertions funded by LDs will need to be fully explored. The CROWSNEST programme remains within its Approved Budgetary Limit. Changes at the end of the Annual Budgetary Cycle round in spring 2017(ABC17) re-set budgets. Further re-profiling likely following re-baselining. Whole Life Costs unlikely to change after the programme baseline is reset, Mar 18. Current forecast for Whole Life Cost is within budget. Exempt under Section 27 of the Freedom of Information Act 2000 (International Relations) Exempt under Section 41 of Freedom of Information Act 2000 (Information Provided in Confidence) œ694M funding for Queen Elizabeth Class support has been transferred to the Common Support Model and is reported under a separate DMPP programme. Project forecast to deliver within budget and within IAC approval. Submarine interface is subject to a separate approval and has been approved for IGBC at a Navy Command Approvals Committee(NCAC)in Nov 17. MGBC is expected to be presented to the NCAC towards the end of 2019. 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. 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. The Whole Life Costs (WLC) above reflect the marginal costs of running the CEPP Programme Management Office over the life of the programme. The WLC for the constituent projects (QEP / Lightning II and CROWSNEST) are reported within their own Programme submissions. As at 30/09/17 the total whole life implementation costs are forecast to be œ634m, reflecting a reduction from the Allocated Budget of œ640m. This reduction is driven by the removal of CMO costs in years 1 & 2 as these did not form part of the Main Gate Business Case. Forecast net benefits over the 13 Year appraisal period of œ275m reflect a reduction on the Target net benefits of œ348m. This has been impacted by the IS technical challenge explained above and reduced demand for Global Removals and Movement Services. Overall variation to the Whole Life Costs have been influenced by schedule delays, increased labour rates and by an increase of Barrow Build Infrastructure overheads. A Whole Programme re-approval approach in 2018 will deliver an improved assessement of risk management. The Complex Weapons programme provides weapons to all 3 Services. Costs are for missiles and their In-Service Support, across the CADMID 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 Ministry of Defence is considering the overall funding approach to the Core Production Capability. 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. DIO Infrastructure. As the Programme moves through LRIPs, URF costs continue to see a reduction in line with the Cost Learner Curve. The 2015 Strategic Defence and Security Review estimated that the manufacture of the four Dreadnought submarines is likely to cost a total of œ31Bn (including inflation over the lifetime of the programme), with a contingency of œ10Bn. Work undertaken in 2017 confirmed that the the current forecast cost for this scope is œ30,444M. The incremental approval approach has continued with Delivery Phase 1, with Delivery Phase 2 due to start in April 2018. ABP is a CDEL capped programme with limited RDEL budget. CDEL is used to pay for the capital construction of new infrastructure assets, RDEL is used to fund the physical costs of moving Army personnel, their dependents and equipment under the ABP programme. Operating costs of new infrastructure is funded by DIO Service Delivery therefore ABP do not track the WLC of the projects with the exception of Project Allenby-Connaught where the Whole Life Cost out to 2041 are in the region of œ891M. The approved transformation Whole Life Costs include provision for Managed Service Provider support and additional DE&S staff costs. All approved costs have been assured by Cost Assurance and Analysis Service. The programme is on track to outturn within the approved budget. Less c.œ40M for infrastructure, 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) Budgeted Whole Life costs include the up-front investment (demonstration and development) and then on-going support costs e.g. licence and hardware maintenance support costs over the 10 years. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The WLC for the project remains within the original approval value. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 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. Whole Life Costs reflect the MGBC remaining within the total. The Whole Life Cost will be re-baselined during the Review Note and approvals process following implementation of the ABC18 Option. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The Whole Life Costs are being developed in line with the revised procurement plan. Exempt under Section 26 of Freedom of Information Act 2000 (Defence) Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) The Budgeted whole life cost for the AFPP was fixed in FY15/16, when the final scope of policy changes required to deliver programme benefits was unclear and this is not sufficient to cover actual forecast programme costs in the period FY17/18 to FY20/21. We intend to undertaken a bottom-up costing of AFPP requirements based on a more mature understanding of programme scope and delivery plans (e.g. a clearer requirement for IT change). This will be used to construct a revised financial bid for the programme. Until assessment studies are complete the total predicted costs and benefits for each of the sub-programmes remains materially uncertain. As assessment studies complete, funding sources are identified, and budgets are agreed with the sub-programme SROs, confidence in the financial position and delivery of benefits will improve. However, this is also set against a broader context of inflationary pressure as a result of Brexit, amongst other things, which could have an impact on the costs of raising finance whilst also potentially depressing realisable land values and stoking cost inflation. The programme is in the midst of a baseline verification exercise that will update forecasts for these various externalities. Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) 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 for 2020). Programme is pre-IGBC and as such whole life costs have yet to be fully defined.