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DIS Commitment
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Milestone
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The Current Position
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MARITIME (1)
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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.
This will be matched by the implementation of a
unified submarine Programme Management organisation within the MOD.
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For the award of the contract for the fourth and
subsequent Astute class submarines.
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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.
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)
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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...
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Within six months from publication
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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)
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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.
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June 2006
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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 Mar 06 and came into force on 4 Apr 06).
Contracts
were awarded for the five upkeep packages in Oct 06 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 Feb 06.
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)
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...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.
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Agreement of LTPA in 2006. Implementation from 2007
onwards
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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)
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...we intend to move ahead with a substantial
Uninhabited Aerial Vehicle Technology Demonstrator Programme in 2006.
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In 2006
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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
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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.
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Early part of 2006
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Achieved.
An AFV Partnering Agreement
between MOD and with BAE Systems Land Systems was signed on 15 Dec 05 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
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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)...
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Spring 2006
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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
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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.
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Mid-2006
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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
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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.
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Summer 2006
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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.
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Summer 2006.
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Achieved
Published as "Maximising the Benefit of Defence Research" on
3rd October 06.
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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.
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Autumn 2006
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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
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Mid 2006.
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Achieved
Completed. The
Defence Technology Strategy successfully launched by Minister for Defence
Procurement on 17th 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.
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Autumn 2006
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Ongoing
Final
NDIC R&T sub-group report will be published early in 2007.
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INTERNAL CHANGE (1)
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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.
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April 2006
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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)
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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.
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First half of 2006
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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)
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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.
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April 2006
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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)
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An evaluation of current incentivisation
initiatives will be completed by October 2006.
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October 2006
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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)
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The DPA will be piloting the operating framework
during 2006, working in conjunction with the other areas of acquisition
to ensure consistency and alignment.
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During 2006
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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 Sep 07
to Apr 07 to align with DACP targets.
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INTERNAL CHANGE (6)
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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.
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May 2006
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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)
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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.
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Early in 2006
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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 Jan 07.
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INTERNAL CHANGE (8)
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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.
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Immediately
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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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