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| DIS Commitment
| Milestone | The Current Position
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MARITIME (1)
| We will immediately start negotiations... to achieve a programme level partnering agreement with a single industrial entity for the full lifecycle of the submarine flotilla.
| For the award of the contract for the fourth and subsequent Astute class submarines.
| Ongoing
Engagement with industry continues, and Industry has come to terms with the need to collaborate. We are now beginning to see some promising movement on a multilateral basis.
A Joint Venture (JV) or Alliance would be acceptable subject to satisfactory arrangements and a commitment to continuous efficiency improvements.
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| This will be matched by the implementation of a unified submarine Programme Management organisation within the MoD.
| | Achieved
Since April 2006 submarine program management within MoD has been unified under Director General Nuclear, who is responsible for managing delivery of the submarine program from concept to disposal.
Under DE&S, DG Nuc will be succeeded as an organisational unit by DG Submarines.
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MARITIME (2)
| For surface ship design and build, we aim within the next six months to arrive at a common understanding of the core load required to sustain the high-end design, systems engineering and combat systems integration skills...
| Within six months from publication
| Ongoing
Good progress has been made in developing a coherent view of loading on the industry, which is an essential first step.
We now need a more detailed skills analysis to ensure that we maintain the key capabilities we need. We will be working this out with the companies concerned in the first quarter of 2007.
This complex analysis covers the surface ship, submarine and support programmes.We can then identify the Core Work Load which will sustain key skills and facilities (the Key Industrial Capabilities), both at platform and key equipment level.
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MARITIME (3)
| For surface ship support, we will start immediate negotiations with industry with the aim of exploring alternative contracting arrangements and the way ahead for contracting the next upkeep periods, which start in the autumn of next year. Key maritime equipment industrial capabilities will be supported by the production of a sustainability strategy for these key equipments by June 2006.
| June 2006
| Achieved
The Department has moved forward quickly with the three dockyard companies (Babcock Support Services Limited, Fleet Support Limited and Devonport Management Limited) to put alternative contracting arrangements in place.To assist this process, competition policy has been suspended (an exclusion order to the 1998 Competition Act was tabled by Department of Trade and Industry on 8 March 2006 and came into force on 4 April 2006).
Contracts were awarded for the five upkeep packages in October 2006 and work started shortly afterwards. These projects will be managed through the exploratory phase of the new Surface Ship Support Alliance (SSSA) announced by the Secretary of State on 14 February 2006.
Discussions have started with the Dockyard companies on the workshare of the next batch of upkeep packages, which are due to commence in spring 2007, starting with HMS GLOUCESTER.
In addition, MoD and the three dockyard companies signed a Memorandum of Understanding (MOU), a non legally-binding document, in September 2006.
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FIXED WING (1)
| ...we will work with BAE Systems and the other companies in the defence aerospace sector so that it can reach the appropriate size and shape for demand... we aim during 2006 to agree the way ahead—which will be challenging given the scope of the scale of the transformation that is required—and to implement it from 2007.
| Agreement of LTPA in 2006. Implementation from 2007 onwards
| Ongoing
We remain on course to reach agreement and implement a full Long Term Partnering Agreement (LTPA) by the end of 2007. Earlier this year the teams agreed the aims and objectives of a possible future LTPA—a framework for taking the project forward.
We are now close to reaching agreement on the terms of a Foundation Contract aimed at de-risking the key component parts of the LTPA, provide confidence to both parties and inform detailed negotiations ahead.
Over the coming months a key strand of this work will address the implications of any possible LTPA deal on the Company's supply chain and the wider defence fixed wing sector as we recognise that many of the underpinning skills and technologies reside across a wide range of defence aerospace companies.
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FIXED WING (2)
| ...we intend to move ahead with a substantial Uninhabited Aerial Vehicle Technology Demonstrator Programme in 2006.
| In 2006
| Achieved
We awarded on 7 December a contract for a programme to build an experimental Unmanned Air Vehicle. "TARANIS", This is a jointly funded Technology Demonstrator Programme (TDP) between MoD and a BAE Systems led industry team comprising Rolls Royce, Smiths Industries and QinetiQ.
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AFVs
| We will be working hard with BAE Systems... to give effect to the long term partnering arrangement... We intend to establish a joint partnering team within the early part of 2006 and to establish a business transformation plan underpinned by a robust milestone and performance regime.
| Early part of 2006
| Achieved
An AFV Partnering Agreement between MoD and with BAE Systems Land Systems was signed on 15 December 2005 and a Joint MoD/BAES LS Partnering Team has been established in Andover.
A Joint Business Plan has been developed that identifies the issues facing the Sustainment of industrial capability in the AFV Sector and proposes a strategy for addressing them.
BAES LS have commenced rationalisation of their business in order to reduce their cost base and detailed transformation plans have been developed to enable them to move towards the through life capability management of the current AFV Fleet as required by the Partnering Agreement.
Significant achievements include delivery of the FV 430 BULLDOG against challenging delivery schedules with very positive and encouraging user feedback received on current operations.
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HELICOPTERS
| We hope that by the Spring 2006, subject to value for money having been demonstrated, we will have reached agreement on a Strategic Partnering Arrangement (SPA)...
| Spring 2006
| Achieved
A Strategic Partnering Arrangement (SPA) and contractually-binding Business Transformation Incentivisation Agreement (BTIA) were signed with AgustaWestland (AW) on 22 June 2006 to drive forward business transformation across the full spectrum of the MoD/AW relationship.
These agreements enshrine the demanding partnered relationship envisaged by the DIS and include challenging measures and targets to maintain effective business transformation both within AW and the MoD.
The BTIA provides opportunities for the company to secure bonus payments for performance improvements and default payments, retained by MoD, if the company fails to improve performance.
This balance of challenge and opportunity is key to driving the changes necessary across all our transactions with AW and ensuring the effective through-life support for those elements of our existing helicopter fleet for which AW have a Design Authority role.
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COMPLEX WEAPONS
| We [will establish] a multi-disciplinary team charged with working with all elements of the onshore industry to establish how we might together seek both to meet our ongoing requirements and sustain in an industrially viable manner the critical guided weapons technologies and through life support capabilities that we judge to be so important to our operational sovereignty... Our intention is that we should have a clearer way ahead by mid-2006.
| Mid-2006
| Achieved
At Farnborough in July Minister(DP) announced the formation of Team CW, consisting of MBDA UK, Thales Air Defence Ltd, Thales Missile Electronics, Roxel and QinetiQ, and announced the intention to develop a Strategic Partnering Agreement (SPA) between the MoD and Team CW by the end of 2006.
Work to deliver this is making positive progress but it is now unlikely that we will be in a position to conclude negotiations, particularly relating to the finalisation of legally-binding performance measures and commitments, by that time.
However, we have made significant progress in defining the agreement with the aim of delivering military capability, while sustaining indigenous industrial capabilities, achieving VFM, and delivering industrial transformation in the sector.
Our work in examining options for the delivery and support of underwater weapons is making similarly positive progress.
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GENERAL MUNITIONS
| We will be taking forward Project MASS, with a view to making decisions on how best to sustain our required access to general munitions in the summer of next year... We are also actively pursuing partnering arrangements with other [non BAES] suppliers.
| Summer 2006
| Ongoing
We are working closely with BAES LSM to rationalise its general munitions manufacturing capacity at its Bridgewater and Chorley sites, to improve efficiency and transform their business model to create a viable future for general munitions production in the UK.
Project MASS is progressing well towards its main decision point.
We have agreed a partnering arrangement with Chemring Countermeasures for the future supply of pyrotechnics. A General Munitions and Energetics Technologies Steering Group has been established with industry to deliver DIS and DTS commitments effectively for all general munitions, warheads and rocket motors.
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RESEARCH AND TECHNOLOGY (1)
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We will [complete] the ongoing Science and Technology Capability Study... by Summer 2006.
| Summer 2006
| Achieved
Published as "Maximising the Benefit of Defence Research" on 3 October 2006.
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RESEARCH AND TECHNOLOGY (2)
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We will conduct further work better to understand the underpinning technologies that the UK must have... by Autumn 2006.
| Autumn 2006
| Achieved
Completed with publication of the Defence Technology Strategy, as the output of this action was subsumed into that document.
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RESEARCH AND TECHNOLOGY (3)
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We will by mid-2006 update our Defence Technology Strategy
| Mid 2006
| Achieved
Completed. The Defence Technology Strategy successfully launched by Minister for Defence Procurement on 17 October 2006. Media and industry reception has been broadly positive.
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RESEARCH AND TECHNOLOGY (4)
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We will develop a better understanding of the innovation process and map out the technology trees for major capabilities, systems and platforms in a report, which we aim to produce by the Autumn of 2006.
| Autumn 2006
| Ongoing
Final NDIC R&T sub-group report will be published early in 2007.
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INTERNAL CHANGE (1)
| We will work with industry to develop, roll out and implement a joint plan for embedding the Defence Acquisition Values throughout the acquisition community. We expect to be in a position to launch this within three months and will apply the real commitment of resource, time and effort that will be required to effect lasting change through 2006 and beyond.
| April 2006
| Achieved
The Defence Values for Acquisition are being embedded across the Department and within industry. The DVfA underpins work to take forward DACP.
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INTERNAL CHANGE (2)
| We are currently scoping two Pathfinders programmes to test and de-risk a programme approach to through-life capability management with the intention that the Pathfinder programme teams will launch in the first half of 2006.
| First half of 2006
| Achieved
We have launched two Pathfinder programmes this year: Sustained Maritime Combatant Capability (SMCC) and the Sustained Armoured Vehicle Capability (SAVC) led by the MoD but with significant industrial input. Both are expected to complete their work for the April 2007 deadlines.
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INTERNAL CHANGE (3)
| We will address the shortages in Project Delivery Skills within the Department by building on our existing Project Delivery Skills Strategy to deliver an accelerated pan-Defence Project Delivery Skills programme... Key milestones are to be achieved by April 2006.
| April 2006
| Achieved
The DACP People, Skills and Behaviour (PS&B) workstream is focusing on cultural and behavioural change. An initial skills audit was completed in June 2006. Skills Champions have identified the skills gaps across the MoD and have developed Skills Growth Plans which will propose specific actions to reduce or remove these skills gaps.
In June 2006 we appointed the Defence Commercial Director and established a single senior official responsible for leading on commercial policy and strategy and to act as head of profession and Skills Champion for the entire MoD commercial function.
Options and opportunities for joint commercial skills training, particularly in the area of partnering, are now being actively explored with industry.
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INTERNAL CHANGE (4)
| An evaluation of current incentivisation initiatives will be completed by October 2006.
| October 2006
| Achieved
A package of HR Freedoms & flexibilities, including recognition and reward measures is being formulated to create the right incentives and behaviours within the new organisation and across MoD.
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INTERNAL CHANGE (5)
| The DPA will be piloting the operating framework during 2006, working in conjunction with the other areas of acquisition to ensure consistency and alignment.
| During 2006
| Achieved
The DPA has completed development work regarding the Project and Programme management element of the operating framework, drawing on industry best practice. Over the coming months the Acquisition Operating Framework (AOF) structure will be subject to a number of design reviews. Initial role out of the AOF has been brought forward from Sepember 2007 to April 2007 to align with DACP targets.
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INTERNAL CHANGE (6)
| We will review—so that we are in a position to make judgements about this by May 2006—the extent to which the current process and organisational construct supports, encourages, hinders or obstructs the delivery of excellence in acquisition. This would allow us to commit to changes that are required this side of the summer recess.
| May 2006
| Achieved
The EAC report was published in July 06 and implementation is progressing well. The report made a wide ranging set of recommendations. It is being implemented through the Defence Acquisition Change Programme.
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INTERNAL CHANGE (7)
| We are looking forward to discussing further with Industry—in the first instance through the commercial policy sub-group of the NDIC early in the New Year—our ideas about alternatives to competition as a means where appropriate of assessing value for money, with a view to developing a concrete action plan for taking them forward.
| Early in 2006
| Ongoing
Interim guidelines have been established for a through life approach, and action taken to put in place a joint MoD and industry code of conduct.
A Key Supplier Management initiative has been developed with a comprehensive analysis of market drivers and behaviours planned to start in January 2007.
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INTERNAL CHANGE (8)
| We will start with immediate effect, to deliver on our revised policy of providing industry with a better and longer term understanding of our future plans.
| Immediately
| Achieved
Besides the increased openness in the DIS itself, we have already run several briefings to industry setting out more detail of our forward plans.
Lessons identified from these have informed guidelines on the conduct of information release to embed the revised policy into normal business, and these will be discussed with industry early in the new year.
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| 19 December 2006 | |
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