Memorandum from BAE Systems plc
INTRODUCTION
BAE Systems is the premier transatlantic defence
and aerospace company delivering a full range of products and
services for air, land and naval forces, as well as advanced electronics,
information technology solutions and customer support services.
With 86,000 employees worldwide, BAE Systems' sales exceeded £15.4
billion in 2005.
BAE Systems Land Systems, created following
the acquisition of Alvis Vickers Ltd (AVL), is part of the Land
& Armaments Group within BAE Systems and has some 3,900 employees
across three business streams: Land Systems UK, Land Systems South
Africa, and Land Systems Munitions.
Land Systems UK designs, develops, manufactures
and markets military weapon and vehicle systems. The company's
primary products are indirect fire systems, direct fire systems,
armoured engineer vehicles, tracked and wheeled military vehicles,
military bridging, and logistic support. The head office is in
Farnborough, with sites in Newcastle-upon-Tyne, Barrow-in-Furness,
Hattiesburg (USA), Leeds, Leicester, Ridsdale, Telford and Wolverhampton.
Land Systems UK products include Challenger
2, CRARRV, Warrior, CVRT, FV430, Panther, TITAN, TROJAN, M777,
TERRIER, Panther, bridging systems, Tactica, and 105mm Light Gun,
with through life support services.
EARLY PHASES
OF FRES
The FRES concept emerged during 2001 with small
scale studies. BAE Systems responded with three inputs: one from
each TRACER/FSCS consortium (LANCER & SIKA) and one from BAE
Systems Future Systems. Alvis (including Hagglunds) and Vickers
(as separate companies in 2001) also submitted bids based on new
and existing products.
In July 2002, at the request of the FRES IPT
Leader in DPA, BAE Systems formed a relationship with Alvis, whereby
Alvis would contribute the AFV domain knowledge and skills and
BAE Systems would manage the System Engineering. A non-competitive
contract was let to Alvis in September 2002. The purpose of the
contract was to determine plans for the Assessment Phase of a
FRES programme with a target ISD of 2009. The industry team comprised
60 people and delivered several studies to MoD. GD (UK) joined
the team in March 2003 specifically to help with the Bowman interface.
The contract was terminated in July 2003 by
the DPA after the Procurement Strategy for a non competitive approach
was not approved by the Investment Approvals Board.
ESTABLISHMENT OF
THE SYSTEMS
HOUSE
In August 2004, Atkins was confirmed as the
chosen Systems House to lead a two year initial Assessment Phase
(iAP), with the following broad aims:
— To further define the FRES capability
required within the developing medium-force and network-enabled
operational concepts and thus develop a series of affordable options
for meeting the FRES requirement.
— To develop optimum procurement
and support strategies for future phases in order to present a
robust case at Main Gate.
— To manage technology and supplier
risk to acceptable levels.
Atkins was also tasked to let competitive Technology
Demonstrator Programme contracts to industry as part of a FRES
Integrated Technology Acquisition Plan (ITAP).
BAE Systems established a dedicated FRES team
in September 2004 to coordinate FRES activities across all interested
BAE Systems Business Units.
In the same period the company strengthened
its capability to deliver land systems solutions. First, by the
acquisition of Alvis Vickers (by this time Alvis had acquired
Vickers) in August 2004. This acquisition had the effect of strengthening
its position for taking a leading role on the FRES programme.
Second, by the acquisition of United Defence Industries (UDI)
in June 2005. The integration of these companies with BAE Systems'
existing land sector activities created one of the world's leading
providers of design, manufacturing and support for land and armament
systems.
TECHNOLOGY DEMONSTRATOR
PROGRAMMES
In December 2004, ITTs were issued for a range
of FRES Technology Demonstrator Programmes (TDPs) which were intended
to inform the FRES requirements documentation.
BAE Systems bid for and won:
(a) Chassis Concept TDP—The ITT requested
a proposal for up to two demonstrator vehicles to undertake mobility
trials. At the DPA's request BAE Systems put in separate bids
for Tracked and Wheeled Concepts. After a number of iterations,
BAE Systems was contracted in December 2005 with the aim of evaluating
the ability of the Swedish SEP vehicle electric drive system (designed
for 17-22 tonne vehicle weight) to deal with vehicle weights up
to 25-28 tonne. Phase 2 is under contractual negotiation and is
forecast to complete in 2008.
(b) Gap Crossing TDP—The aim of this
TDP is to evaluate gap crossing in three phases:
— The derivation of gap crossing design
requirements;
— Generation of design concepts against
the requirements; and
— More detailed design of the solutions
encompassing both alloy and composite materials.
BAE Systems Land Systems was contracted in December
2005 and has completed Phase 1 of the TDP; Phase 2 is in train
and will complete in October 2007.
(c) Electronic Architecture TDP—The
aim of this TDP is to define a candidate Electronic Architecture
for FRES and to carry out demonstrations to mature the Readiness
Levels of the Architecture. BAE Systems chose to team with Thales
in bidding for the EA TDP. The Thales team which won one of the
two EA TDPs comprises Thales, BAE Systems Insyte and QinetiQ.
The TDP will inform FRES electronic architecture requirements
by design and demonstration of technology including; Vetronics,
Power Management, CBM(Land) Command and Control, On-platform Command
and Control, Integrated Image Handling (IIH), Local Situational
Awareness, End-to-End Health and Usage Monitoring System (HUMS)
and requirements for a System Integration Lab.
The TDP was contracted September 2005 and is
currently exercising an example electronic architecture at BAE
Systems' System Integration Facility in Leicester. The team is
preparing to embody the architecture in an electric drive vehicle
for testing. The TDP will conclude in March 2007.
BAE Systems bid for but did not win:
(a) Electric Armour TDP—BAE Systems
Land Systems failed to win this against an Insys bid (teamed with
SAIC and QinetiQ). The aim of this TDP was to evaluate the development
and integration issues of electric armour onto AFVs.
(b) Integrated Survivability TDP—After
evaluation of the ITT for this TDP, BAE Systems decided to support
QinetiQ's bid since the scope was predominantly modelling. This
TDP was won by Thales against competition from QinetiQ and Insys.
DEFENCE INDUSTRIAL
STRATEGY STATEMENTS
ON FRES
The Defence Industrial Strategy (DIS) was published
on 15 December 2005. Amongst the key aims of DIS was to provide
greater transparency to the UK's future defence requirements and,
for the first time, to set out those industrial capabilities for
which the UK needs to maintain appropriate sovereignty. Significantly,
it seeks to achieve the through-life management of Armoured Fighting
Vehicles (AFV). Chapter B3 on Armoured Vehicles includes the following
statements about FRES:
"The most likely solution (for FRES)
will be a team in which national and international companies co-operate
to deliver the FRES platforms, including the required sub-systems,
led by a systems integrator with the highest level of systems
engineering, skills, resources and capabilities based in the UK."
"We expect to see a significant evolution
of BAE Systems Land Systems both to deliver AFV availability and
upgrades through life, and to bring advanced land systems' technologies,
skills and processes into the UK. If successful in their evolution,
BAE Systems will be well placed for the forthcoming FRES programme"
The AFV Partnering Agreement was signed on the
same day as the DIS by Lord Drayson (Min DP) and Mike Turner (BAE
Systems CEO) and has the following key objectives:
— Deliver military capability
for demonstrably better value for money.
— Improve the reliability, availability
and effectiveness through-life of existing AFV fleets.
— Transform BAE Systems Land Systems
to achieve better Through-life Capability Management for AFVs.
— Support the Sustained Armoured
Vehicle Capability (SAVC) Pathfinder project.
— Scope any necessary industrial
alliances.
— Ensure the UK has access to
the relevant IPR involved in current and future AFV fleets.
The achievement of these objectives is measured
through 22 Confidence Building Measures (CBMs), most of which
have been completed.
TRANSFORMATION
Under the AFV Partnering agreement BAE Systems
Land Systems has committed to transform its business in four key
areas to support MoD now and in the future:
— Through-Life Capability Management.
— Through-Life Systems Integration.
— Industrial Supply Chain Management.
— Technology Acquisition and Insertion.
The main focus of this transformation is to
ensure effective Through Life Capability Management of the existing
AFV fleet with a further aim of strengthening Land Systems capability
to take a leading role in FRES.
BAE SYSTEMS INVESTMENT
IN TRANSFORMATION
AND FRES
System Integration Laboratories (SILs)
As part of Land Systems transformation, BAE
Systems initiated in January 2006 an investment project to create
a System Engineering Facility at Leicester. The facility builds
on the Leicester site heritage in electronic systems and vehicle
integration (eg radar and naval weapon control system programmes,
TRACER and TERRIER AFV programmes).
The initial phase, completed in September 2006,
has consolidated synthetic environment rigs and tools in one place
for use by engineers throughout the system engineering life cycle
in the concepts, design, risk mitigation, demonstration and integration
of AFVs.
The major elements of the facility draw on BAE
Systems capabilities in UK and US and comprise:
— 3-Dimensional visualisation
facility—to support rapid concept generation from CAD designs
enabling requirement evolution with the customer leading to a
rapid prototyping where required.
— Combat SIL—focussed on
the fighting capability of the vehicle, in particular development
of the crew tasks, human interfaces and effectiveness in battle
simulations.
— Electronic SIL—focussed
on the design of the electronic architecture and (through successive
substitution of models for prototype hardware and software) the
de-risking of the eventual vehicle system.
— Vehicle SIL—a facility
to support the integration, testing and verification of complex
electronic and software based systems into demonstrator, prototype
or in service vehicles (eg for Urgent Operational Requirements—UORs).
The Systems Integration Facility is a unique
UK capability to support the current and future fleet of AFVs.
Platform Development Centre
BAE Systems is planning a substantial investment
to create a Platform Development Centre (PDC) at its Newcastle
site.
Used in conjunction with the Systems Integration
Facility at Leicester, the PDC will:
— Rapidly transform 3-D model
concepts into experimental prototypes and pre-production demonstrators.
— Reduce programme cost, risk
and timescale from inception to production commitment.
— Be exercised in rapid product
development activities where opportunities arise in advance of
FRES programme requirements.
The PDC rapid prototyping facilities will translate
designs to hardware in the shortest possible timescales.
Both of these new facilities demonstrate BAE
Systems' commitment to invest and prepare for participating in
the FRES programme. They will fast track platform design and integration
activities by combining the benefits of:
— Co-located integrated project
team (IPT) resources, using the best available skills, tools and
methods.
— A collaborative environment
that serves to engage partners, strategic suppliers and customer
representatives.
— Lean product development methods.
Wheeled Utility Vehicle
During 2005 it was becoming increasingly apparent
that the most likely vehicle configuration for the Utility roles
of FRES would be an 8x8 wheeled configuration capable of carrying
a two-man crew plus eight-man infantry section. In Sweden the
FMV/BAE Systems Hagglunds SEP programme had been developing a
vehicle system comprising both 6x6 wheeled and tracked electric
drive vehicles. BAE Systems decided in September 2005 to invest
PV funding in the development of an 8x8 conventional drive version
of SEP which will meet the FRES requirements. The 8x8 conventional
drive demonstrator vehicle will commence trials in January 2007
initially in Sweden and then the UK. This project demonstrates
BAE Systems' commitment to product development in advance of MoD
funding and in anticipation of competition for the utility variant.
CAPABILITY INTEGRATION
BAE Systems has also presented MoD with a proposal
for a Industrial Capability Integration Partnership, which would
be led by the company in partnership with GD (UK), QinetiQ and
other firms with a relevant capability, to support the introduction
of Through Life Capability Management (including support, upgrade,
technology insertion and overall fleet coherence) across the current
and future fleets of AFVs, and to ensure the integration of FRES
into the wider Land battlespace.
FRES ACQUISITION
STRATEGY
In November 2006 MoD announced a three tier
acquisition strategy for FRES, with a Systems of Systems Integrator,
Platform Designer, and a Vehicle Integrator/Manufacturer. In accordance
with the declared MoD approach, BAE Systems has intends to compete
for all three levels of the structure and looks forward to taking
a leading role in all aspects of the FRES programme.
24 November 2006
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