UK NSR 04

 

Memorandum from VT Group

 

 

1. Executive Summary

 

This memo:

 

a. Provides an introduction to VT Group, its vision and values;

 

b. Provides some examples of VT 'Homeland Security' services;

 

c. Identifies VT Group's approach to remaining a key partner in an increasingly challenging security and economic environment;

 

d. Makes a number of suggestions for action.

 

 

2. Introduction to VT Group plc

 

a. VT Group is a leading defence and support services contractor that provides engineering focused, mission critical support to the defence, nuclear and secure communications sectors, supported by a comprehensive specialist training business. The Group employs over 14,000 people and has a turnover of over £1.2bn. Its vision is "to be recognised as the number one international government services group", which VT aims to achieve by living its core values:

 

· People - the quality of VT's people contributes directly to business success; VT is committed to enabling people to release their full potential and realise their goals;

· Performance - as the business grows, VT is committed to delivering excellence to both internal and external customers, and to ensuring employees are focused on performance;

· Partnering - VT has played a ground-breaking role in developing and applying approaches to partnering with the customer; its trusted and reliable processes deliver on time and to budget. VT is committed to remaining an innovative and best practice partner.

 

b. In recognition of VT's approach to partnering, the July 2007 MoD Directorate of Supplier Relations (DSR) performance review rated VT as "the MoD's highest performing company". In particular, the review noted:

 

"the company has a culture of developing professional, open and honest relationships, and actively encourages an atmosphere of mutual trust and support. This was particularly demonstrated in those relationships based on a 'partnering' approach. Comments received also indicated that in most cases these relationships stand up to strong debate and issues are jointly resolved as one team."

3. VT 'Homeland Security'

 

a. VT 'Homeland Security' brings together expertise from across the Group to make a wide and diverse contribution to UK national security and resilience. This contribution is underpinned by a long-standing appreciation of military and 'blue-light' ethos, and a genuinely impartial take on equipment that enables VT to broker differences between the customer and the original equipment manufacturer.

 

b. VT's contribution includes the provision of communications infrastructure, nuclear engineering and technical services, fire fighting training facilities, military training, aircraft and ships.

 

c. Communications infrastructure, for example, spans the design, build and operation of mission critical communications for long-standing customers such as national intelligence agencies, the UK Armed Forces, including the RN's submarine fleet (as well as the national strategic deterrent), and other NATO militaries. Advanced technological solutions are complemented by full through-life maintenance and support services.

 

d. Nuclear engineering and technical services, by way of further example, include the monitoring of radioactive materials in and out of Sellafield and the provision of emergency response capabilities. Working for the UK Government under programme Cyclamen, our emergency response teams ensure specialist expertise is on hand 24/7/365 to deal safely with a radiological incident, both by identifying and disposing with any suspect materials.

 

e. A number of examples of VT 'Homeland Security' solutions are set out in the table below. VT's complete contribution, from design and build through to maintenance and support, is set out at Annex A.

 

4. Examples of VT 'Homeland Security' Solutions

 

SERVICE	DETAIL	COMMENT	CONTRACT TYPE/PERIOD
Secure and resilient communications	VT provides the UK and NATO militaries with High Frequency communication. The secure and resilient service can be used to contact ships and aircraft.	Min(DES) Acquisition Award for Excellence, May 08. Special Min(DES) Acquisition Award for Partnering, May 08. 270 military personnel returned to high priority duties. 2000 acres of land returned to MoD.	15-year PPP let in June 2003.
VT delivers secure communications to the RN's submarine fleet (including the national strategic deterrent). The service is based on the message 'always getting through'.	Winner 'Most Innovative PFI Contract' 2001. £1m returned to MoD through innovative re-financing in 2007.	PFI let in Jan 2004.
Broadcast services	VT delivers the BBC World Service globally, as well as programming for a number of other broadcasters.	The global service is often the only communications medium available instantly in the event of major incidents, where television and telecommunications networks are the first casualty.	10-year contract let in 1997. Extended to 2012.
Cyclamen emergency response service	VT provides an emergency response capability on a 24/7/365 basis across the UK in the event that suspect radioactive material is found.	Cyclamen capability is available at ports, airports and temporary/mobile locations throughout the UK.	£11m. 2006-2017.
Securing critical infrastructure	VT has supplied, installed and commissioned a radiological and nuclear monitoring system to detect illicit radioactive movements onto or from the Sellafield nuclear licensed site.	The system is one of several that help deter nuclear material proliferation. The system also detects movements onto site which might be associated with a "dirty bomb" or "improvised nuclear device".	£6m. Supply contract.
Personal and environmental radiation monitoring	On behalf of various nuclear licensed sites, VT provides radiation monitoring for over 15,000 people. This covers "film badges" through to complex internal dosimetry.	The recent Polonium 210 poisoning incident was confirmed by using internal dosimetry, which is also capable of detecting many other radioactive substances.	£4.7m pa. 3 year + 2 extension.
Through-life capability support	VT provides the Met Police with through-life capability support (inc. surge capacity) for some 3,600 vehicles.	The Olympics 2012 is an example of surge requirement.	£25m contract. 2005-2015.
VT leases 3 off-shore patrol vessels (OPVs) to MoD and maintains these in aid of, among other things, drug interdiction, anti-terrorism and submarine support duties. VT also leases an OPV with helicopter carrying capability to the MoD for the purposes of patrolling the Falkland Islands' waters.	Commander HMS Clyde and former commander HMS Mersey, Lieutenant Commander Jonathan Lett RN: "These are modern, fast, agile and versatile platforms. [...] In my two commands, I have built up a close relationship with VT and genuinely feel I am in partnership with the company."	OPVs: output-based contract. 2002-2013.   Falkland Islands vessel: output-based contract. 2007-2013.
Training facilities	VT provides the following Fire and Rescue services with state-of-the-art training facilities: Somerset, Avon, Gloucester, Devon and South Wales.	Contract with Gloucs FRS covers Devon, Somerset, Gloucs and Avon services.	£42m PFI contract with South Wales Fire and Rescue Services (2005-2030). £72.5m PFI contract with Gloucs Fire and Rescue Service (2003-2028).

1.

5. The Future of UK National Security and Resilience

a. As the National Security Strategy notes, the UK's security landscape is increasingly complex and unpredictable. Interconnected threats and risks have the potential to undermine stability both here and abroad. Just as VT responded quickly and pragmatically to developments in Government defence industry policy, e.g. by constructing BVT Surface Fleet, the maritime joint venture between VT Group and BAE Systems, the Group is poised to respond to developments in Government homeland security policy. Indeed, in many regards (as evidenced in this memo), VT is already at the forefront of efforts to address and manage the interconnected threats and risks identified by the National Security Strategy.

 

b. Going forward, as the Government shapes its approach to homeland security, VT will continue to provide:

 

i. Best value for money partnering arrangements, where behaviours include taking the long view, establishing shared goals, operating open book accounting, contracting for availability, gainsharing, driving thought leadership and continuously reviewing progress and processes;

ii. Unique delivery capability, where practice includes equipment impartiality, proactive through-life servicing, a whole-life cost outlook and making use of bespoke technology to capture management information and drive thought leadership;

iii. Cutting-edge innovation, whether it applies to the application of new technologies or the development of commercial models.

 

 

6. Suggestions for Action

As the National Security Strategy also notes, "To deliver [...] in a challenging environment, we are reforming the approach to defence procurement and our relationship with the defence industry, with more hard-headed prioritisation and a greater emphasis on value for money." (p. 46). VT Group welcomes this commitment and suggests a strategic alignment with first procurement principles in order that industry makes the necessary investment to meet the Government's homeland security requirements. To promote efficiency and to give industry direction, aspects of an aligned approach to homeland security could include:

 

a. A homeland security procurement strategy;

 

b. A procurement model that takes the best of the defence procurement and through-life support model and applies it to homeland security;

 

c. A central homeland security procurement agency;

 

d. A Government/industry contact programme;

 

e. A capable UK supply chain, in order to ensure we, as a nation, are as self-sufficient as possible.

e.

ANNEX A

 

SERVICE	DETAIL	COMMENT	CONTRACT TYPE/PERIOD
Secure and resilient communications	VT provides the UK and NATO militaries with High Frequency communication. The secure and resilient service can be used to contact ships and aircraft.	Min(DES) Acquisition Award for Excellence, May 08. Special Min(DES) Acquisition Award for Partnering, May 08. 270 military personnel returned to high priority duties. 2000 acres of land returned to MoD.	15-year PPP let in June 2003.
VT delivers secure communications to the RN's submarine fleet (including the national strategic deterrent). The service is based on the message 'always getting through'.	Winner 'Most Innovative PFI Contract' 2001. £1m returned to MoD through innovative re-financing in 2007.	PFI let in Jan 2004.
Broadcast services	VT delivers the BBC World Service globally, as well as programming for a number of other broadcasters.	The global service is often the only communications medium available instantly in the event of major incidents, where television and telecommunications networks are the first casualty.	10-year contract let in 1997. Extended to 2012.
Secure positioning	VT provides the UK eLoran navigation signal, which is a highly resilient terrestrial back-up to GPS. The service also has the capacity to broadcast to users in the event of a major incident when telephone/mobile networks are otherwise down.	GPS can be easily jammed and is not always effective in built-up areas. eLoran, on the other hand, has no problem penetrating built-up areas.	15-year PFI contract let in 2007.
Secure and resilient networks	VT provides the MoD and a national intelligence customer with regulation compliant network infrastructures, which it also designs and installs.	The services are delivered by security-cleared technicians and are designed hand-in-hand with the customer.	Contract let in 1995.

UK time signal	On behalf of the National Physical Laboratory, VT provides the UK national time radio signal. The service also has the capacity to broadcast to users in the event of a major incident.	The service currently controls a number of systems, including railways, telecommunications networks and logistic distribution systems.	10-year contract let in 2006.
Specialist vehicles	VT designs and builds specialist communications vehicles for the MoD and security services. The vehicles are designed to operate in the most demanding environments and have minimal radio frequency leakage.	These vehicles are easily deployed to the scene of a major incident in order to set up a communications infrastructure as rapidly as possible.	Contract let in 1995.
Cyclamen emergency response service	VT provides an emergency response capability on a 24/7/365 basis across the UK in the event that suspect radioactive material is found.	Cyclamen capability is available at ports, airports and temprary/mobile locations throughout the UK.	£11m. 2006-2017.
Securing critical infrastructure	VT has supplied, installed and commissioned a radiological and nuclear monitoring system to detect illicit radioactive movements onto or from the Sellafield nuclear licensed site.	The system is one of several that help deter nuclear material proliferation. The system also detects movements onto site which might be associated with a "dirty bomb" or "improvised nuclear device".	£6m. Supply contract.
Personal and environmental radiation monitoring	On behalf of various nuclear licensed sites, VT provides radiation monitoring for over 15,000 people. This covers "film badges" through to complex internal dosimetry.	The recent Polonium 210 poisoning incident was confirmed by using internal dosimetry, which is also capable of detecting many other radioactive substances.	£4.7m pa. 3 year + 2 extension.
Tactical radiation monitoring equipment	VT supplies and supports MoD with critical radiation monitoring equipment. This includes supply, calibration, maintenance and repair, simulators and training.	Used by front-line troops in their active operations world-wide.	£14m.

Managing counter-proliferation	VT is the managing agent for DBERR's counter-proliferation activities in Russia. This includes letting contracts for physical protection equipment and nuclear materials accountancy, as well as the provision of specialist training for Russian guards at sensitive sites.	Nuclear materials accountancy is the process where receipts and exports of nuclear material are verified to ensure that all material is accounted for and any attempts at illicit or willful diversion are detected and stopped in a timely manner.	£4m. 2005-2010.
Through-life capability support	VT provides the Met Police with through-life capability support (inc. surge capacity) for some 3,600 vehicles.	The Olympics 2012 is an example of surge requirement.	£25m contract. 2005-2015.
VT leases 3 off-shore patrol vessels (OPVs) to MoD and maintains these in aid of, among other things, drug interdiction, anti-terrorism and submarine support duties. VT also leases an OPV with helicopter carrying capability to the MoD for the purposes of patrolling the Falkland Islands' waters.	Commander HMS Clyde and former commander HMS Mersey, Lieutenant Commander Jonathan Lett RN: "These are modern, fast, agile and versatile platforms. [...] In my two commands, I have built up a close relationship with VT and genuinely feel I am in partnership with the company."	OPVs: output-based contract. 2002-2013.   Falkland Islands vessel: output-based contract. 2007-2013.
'White Fleet' vehicles	VT provides the MoD with up to 15,000 non-military vehicles, which are continually upgraded to meet changing emissions targets.		2001-2011.
Construction equipment	In partnership with Amey, VT provides the MoD with construction and engineering equipment (most of which is military) world-wide.	Voted 'best deal to reach financial closure' in 2006 and 'best operational defence scheme' in 2007. Both awards made by Public Private Finance.	PFI contract. 2005-2021.
Engineering training	On behalf of MoD, VT operates the engineering school, REME at Arborfield and Bordon, and the Armour Training School at Bovington. VT provides training in support of UORs at all locations.		2000-2010.

Aircraft	VT provides the RAF with up to 50,000 flying hours per year on light aircraft (for training purposes). VT also provides the necessary support services.	The Authority has stated complete satisfaction with the contract at every annual contract review.	PFI contract. 1999-2009.
Support services	VT operates the Tucano Total Support Programme, which delivers 13,500 flying hours per year to the RAF on RAF-owned aircraft.	This was the July 2007 DSR's highest scoring contract.	Output-based contract. 2002-2010.
Training facilities	VT provides the following Fire and Rescue services with state-of-the-art training facilities: Somerset, Avon, Gloucester, Devon and South Wales.	Contract with Gloucs FRS covers Devon, Somerset, Gloucs and Avon services.	£42m PFI contract with South Wales Fire and Rescue Services (2005-2030). £72.5m PFI contract with Gloucs Fire and Rescue Service (2003-2028).

 

16 May 2008