Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 80-99)

DR IAIN WATSON, DR ANDREW TYLER, MR JONATHAN LYLE AND LIEUTENANT GENERAL ANDREW FIGGURES

27 JUNE 2006

  Q80  Chairman: How is this project going to deal with fast inshore attack craft?

  Mr Lyle: We are putting new barrels on, giving more precise, accurate fire, but more importantly, as you can see in the pictures, we are putting additional sensors on to the mount so we have a forward-looking infra-red imager. We have what we call side lobe suppression in the radar, which means—the engineers in the room will hopefully understand it—that we are looking to direct the beam more clearly so that it gives it a look-down capability to discriminate and pick up targets against sea clutter. The sea produces a scattering effect for normal radars. This gives it an ability to look down more. It is looking up to aircraft threats or sea-skimming threats. It gives it an ability to look down at things coming effectively below the horizon. The system would look down on things on the water. It gives it that additional capability as well as retaining its capability to defend against sea-skimmers and against aircraft.

  Q81  Chairman: At the end of March the projected cost was £63 million, which was £3 million under the approved cost. Does it remain the same? Is that the current forecast?

  Mr Lyle: That is the current forecast, yes.

  Q82  Chairman: At the end of March the forecast in-service date was July 2008. Does that remain the same?

  Mr Lyle: Yes, that is the same.

  Q83  Chairman: Does that in-service date projected relate to both the small calibre gun and the upgrade of Phalanx 1A?

  Mr Lyle: The in-service date is a combination of the two systems. The in-service date is actually driven by the later of the two systems. So we plan to have an initial operating capability with the automated small calibre gun on the Type 23 in the summer of 2007; in July in fact. So that will already be in service in 2008. The ISD is defined as when we have both systems in service, so it is driven by the Phalanx system.

  Q84  Chairman: When the Type 45 destroyer replaces the Type 42, is there still a need to fit the Type 42 with an upgrade to the Phalanx system?

  Mr Lyle: The Type 42 currently has Phalanx 1A systems. A certain number of Type 42s, five in fact, will be upgraded to the Phalanx 1B system and will carry that until they are paid out of the Royal Navy service. When that happens, the Phalanx 1B mounts that we have will be refitted to other ships in the Royal Navy's fleet and a decision will be taken at that time as to which are the priority to receive it. A number of RFAs are receiving modifications to enable them to receive this system. We will take a decision at the time. We will recycle the mounts, as we currently do, on to those ships that are best judged to need the capability at the time. So the assets will be reused.

  Q85  Chairman: What system do other navies use to deal with these threats?

  Mr Lyle: The Phalanx system is very much the market leader. I believe there are about 23 navies who operate the Phalanx 1A and about seven, including ourselves, who operate the 1B. The other contender which we do operate on our ships is the Dutch goalkeeper system, which we operate on some of our larger ships, but the market leader is very much the Phalanx.

  Q86  Chairman: Getting back to the question that Kevan Jones was asking about buying things off the shelf, is there an element here of re-inventing the wheel with this project, or would it be possible to buy something that was already developed?

  Mr Lyle: We are buying this off the shelf. We bought it off the shelf when we originally bought it as a Phalanx system, and we have then followed effectively the Americans. So the mod kit that we are now putting on, the mod 1B, which is part of this fit, is already in service with the United States. So it is off the shelf.

  Chairman: Moving on to the Maritime Composite Training System Phase 1, Linda Gilroy.

  Q87  Linda Gilroy: First of all, could you outline to us what the Maritime Composite System Phase 1 project will deliver, who it is for and what the other phases of the project will deliver?

  Dr Tyler: Again, can I assist you by passing round a couple of pictures? The first one shows what we have presently in our maritime training simulator and the second one is a concept picture showing what we are aiming towards. The best way to describe this is if you imagine—some of you might have visited—a warship, that down in the guts of the warship is basically the nerve centre, the place where the ship is fought from, so it contains the radar systems, the missile control systems and so on, and what we have done in the past, and the existing system which is shown there, that is basically—I have heard it described as a concrete ship. They basically build the entire operations suite that you would find on board a ship at a land-based training centre. One of the key things about that is that each ship has a completely bespoke, unique set-up. So you will have one for the Type 23, one for the Type 22, one for the Type 42 and so on. They are completely inflexible. When the guys and girls go in it to practise and train, you need everybody present that you would have within the operations room, even if you were just using one or two bits of equipment. It has to be used as an integrated suite. What we are doing with the Maritime Composite Training System is we are taking great advantage of commercial off-the-shelf technologies in terms of the hardware, and indeed, this is the direction we are going in on the warships themselves, and you can see from that more conceptual picture there that what we have there is effectively standard hardware units inside of which will be maybe a slightly higher specification but the sort of computer you would expect to have, and all of the training, the systems, are provided as software to that. That has hugely opened up our flexibility for use of the system. We can now take one of those units and configure a classroom with, let us say, a dozen radars in it. So if somebody is getting radar training, we can have 12 of these set up, and you can have 12 people individually being taught how to use a radar. On the other hand, we can set them up and arrange the room and the equipment to simulate a Type 23 or a Type 42 and, even more significantly, what we can do is that when we are doing co-operative training, where we are trying to use more than one ship working together, we can basically set up any permutation and combination we like. At the moment all we can do is have one Type 23 and one Type 42 and one Type 22 working together. So we have enormously opened up our envelope of flexibility for use of the system. We have also, because of the flexibility it has given us, been able to reduce the number of instructional and training staff that we require to do this, the amount of real estate that we are using, so we are getting some very positive efficiency benefits coming out of this as well. The other thing that we have been able to do with this—and this is a subtlety but I think it is very important—is that in the past the training period that individuals would go through contained a relatively small generic training part and then a large specific training part. When I say specific, I mean specific to a particular ship. If that individual was going to move on to another ship, they would then need to go through a protracted specific training period. What we have done now is we have used this project as an opportunity to turn that on its head now and to have a much more protracted general training period followed by a much shorter specific training period. So you can imagine now that our ability to use our sailors more flexibly has been increased, because if they are going to move from one ship to another, they can come back for a relatively short period. I hope that answers the question.

  Q88  Linda Gilroy: That is very clear. Thank you very much. What about the other phases of the project?

  Dr Tyler: Both phase 2 and, being a little bit more visionary, phase 3, are—at the moment phase 2 has a notional amount of money put aside for it but it is not a confirmed project. At the moment all of this training goes on onshore, but obviously, what we would like to do is to optimise the amount of time that our sailors spend at sea, so what phase 2 would do is it that the equipment is actually fitted in the operations room on the ship but instead of being fed by live sensors, by live radar and the missile system, it would be fed by simulated and emulated data so they would sit alongside—this is not while the ship is under way—and take a data feed from the shore, and they would be able to sit in their own operations room and fight simulated conditions. Phase 3, going beyond that, is to do the same thing but at sea. That has quite a lot of quite complex issues associated with it so at the moment that is more of a vision for the future rather than something we have an extant plan for.

  Q89  Linda Gilroy: As at the end of March 2006, some three and a half months into a four to three-month demonstration and manufacture phase, the project was forecast to be £2 million under the approved cost. Is the current forecast the same?

  Dr Tyler: That is the current forecast, yes.

  Q90  Linda Gilroy: The in-service date for initial operating capability for the system is July 2009. Is that right? March? July?

  Dr Tyler: Our current forecast for the ISD is shown in table 3(b) at July 2009, which is seven months beyond our 50% date, as we call it, our most probable date of January 2009. So our timescale has slipped on this programme.

  Q91  Linda Gilroy: What sort of things have caused that slippage?

  Dr Tyler: Some of it we are going to have to put our hand up for here, in the sense that there was a more protracted negotiation. Immediately after we had gone through the main gate process, got the main gate approval, we were a bit optimistic about the time it was going to take to complete the contract negotiation. We have had to add in a three-month additional period into the acceptance process. The reasons for this are somewhat complicated but related to the changing of the way we are doing the training. I talked earlier about the generic training and the specific training. One of the implications of that means that instead of being able to accept the different ships' simulators one after the other, we basically have to have them all ready at the same point in order to be able to accept them, and that has effectively added three months into our acceptance process before we would actually be able to declare the initial operating capability.

  Q92  Linda Gilroy: Can I just be clear? The initial operating is July 2009 but that has slipped?

  Dr Tyler: Originally it was January 2009 for our most probable and it has now slipped to July 2009.

  Q93  Linda Gilroy: Full operating was October 2010. That has slipped back.

  Dr Tyler: Yes, by which time we would have ... We are working on that at the moment. We are at very early stages in the project here so we are just working through the specific implications of whether that slip would then track through the whole of the programme.

  Q94  Linda Gilroy: What is the impact of that slippage going to be in terms of people who are expecting to be able to use it and are planning for it?

  Dr Tyler: Two things. I would like to make a point here, because I think it comes to one of the more general things that we were talking about earlier. One of the things I think this project can be held up, as a good example of, is the application of a technique which we are now mandating in all projects called Earned Value Management, which, put simply, is basically gauging the stage you are in the project by the actual real value that has been executed in the project to that point in time. What that does is it forces you to be extremely rigorous about understanding very, very early on in the project how your programme is likely to develop. In times gone by, I am sure you have heard in the past of projects where we found out that things were slipping rather late in the event before we were able to really explore options about what we were going to do about it. What we have done is we have realised that there were some programme issues in this project at a very, very early stage, so that is allowing us to do two things: first of all, it is allowing us to obviously look within the project itself as to how we can get some of that time back, and I think there is a real prospect of doing that with our contractor, who is being very co-operative. The second thing it allows us to look at is what contingency plans we might need to have in place in order ensure that the customer is not going to be without their capability, and in fact, there are a couple of strands to that. First of all, we were originally due to be vacating the Southwick Park premises—it used to be HMS Dryad—but now that is staying in MoD's hands so that the enclave, as we call it, where the current simulators are based is going to continue to be available to us if necessary. The second thing is that we have some slippage in the Type 45 destroyer programme, which is the other critical date to have the simulator ready for the training for Type 45. So essentially, that has bought us a little bit of time on the programme. We can call that serendipity but that gives you some idea of the contingency plans that we are able to build in order to make sure that, whatever happens, we are not getting a situation where we do not have our sailors trained and ready for action.

  Q95  Linda Gilroy: I am curious as to how the programme can slip but can become less expensive at the same time. I would have thought it would be the other way round.

  Dr Tyler: It depends. This is a lump sum, fixed price contract that we have with the contractor. If the contractor determines that it is going to take him three months longer, that is his risk that he is taking.

  Q96  Linda Gilroy: So his reward basically comes with meeting the deadline, and if he does not do that, he is losing something.

  Dr Tyler: Of course, and one of the things he is going to have to do is to sustain his project team for a longer period than he had budgeted for, and so there will be a financial penalty to him for that.

  Q97  Chairman: Have you built into this training system, training for the future aircraft carriers?

  Dr Tyler: Not at this stage. However, one of the beauties of the maritime composite training simulator is now all the new classes, instead of us having to build a concrete CVF on some land site somewhere, what we will basically be able to do is, as somebody put it to me the other day, bring the CD, load it in and then reconfigure the floor space with those standing units that you saw in the picture to replicate the floor space at the CVF operations room, and the same for any other ship.

  Chairman: Moving on to the thermal sighting system, David Borrow.

  Q98  Mr Borrow: I was at TADL in Belfast yesterday so I have had a demonstration of this kit. I was a bit perplexed to understand why this sort of kit was not fitted in the first place with the SP HVM.

  Dr Watson: It was an aspiration when the original project was carried forward. At that time the technology was not mature enough and the risk, both technical and financial, was excessive for that original project, so it was therefore postponed to a later date, and when we felt the technology was ready, we chose to take it forward.

  Q99  Mr Borrow: At the end of March this year, the project is forecast to be £2 million underspent. Is that still the case?

  Dr Watson: That is correct.


 
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