Written evidence from the Ministry of
Q9. Stock Deterioration in Op HERRICK
There are multiple causal factors for the degradation
of stock on Op HERRICK, either by 'life expiry' or by environmentally
induced physical degradation. High ambient temperatures and harsh
operating conditions, particularly in forward locations, has resulted
in some degradation of stock in the past. Until late 2010, some
Theatre Force level stocks held in Camp Bastion were kept in sub-optimal
storage facilities. Storage of supplies in Theatre has been addressed
as part of the HERRICK Campaign Support Plan (HCSP), established
as a recommendation of the HERRICK Campaign Support Review in
June 2009 initiated by the Defence Logistic Board in January 2009.
Since 2010, the Bastion Supply Solution has improved
the storage of General Stores, Equipment Support materiel and
aviation stores with the provision of purpose built storage facilities
in Camp Bastion. These facilities have enabled the move
of stock that was previously stored in ~1,000 ISO containers.
The Force Primary Depot build commenced in October 2010 and this
will eventually hold all Theatre Force General Service stocks,
less some commercial stocks such as bottled water and rations
(held under commercial arrangements in Afghanistan). Further improvements
in temperature controlled storage within the Force Primary Depot
are planned in 2011 which will further improve the lifespan of
specified stocks. Additionally, the establishment of Logistic
Support Teams with each Theatre Force battle-group in 2010 has
enabled logistic specialists to deploy forward to improve logistic
arrangements in forward locations. Management of stock has improved,
enabling the backload of surplus stock to Camp Bastion and better
rotation of stock subject to degradation including ammunition
The level of deterioration of stock in theatre has
improved by these measures. Within the next 12 months the Department
will take further action to establish a system to derive reliable
cost data across all the materiel accounts to enable more accurate
tracking of materiel written off.
Q32. What is the cost of the Supply Chain for
UK operations over Libya, Op ELLAMY, and the overall cost of Op
Op ELLAMY Supply Chain Costs.
Total (to date 13 Mar13 Jun): £3.3M.
The current estimate of the total net additional
costs of military operations for six months in support of Operation
ELLAMYthe United Kingdom's contribution to coalition operations
in support of United Nations Security Council Resolution 1973is
in the region of £120 million. This excludes costs associated
with capital munitions expended.
Based upon current consumption rates we estimate
the cost of replenishing munitions may be up to £140million.
The Treasury has agreed to meet these costs from
Q's 104, 111, 174. Which IT systems are currently
at Critical and what actions are the department taking to reduce
the severity. How much money we are investing in these systems,
who are the SRO's accountable for the projects by individual name
and project, and what is going to be delivered by what date (key
The major Logistics Information Systems projects
to replace key systems are all being delivered within the Joint
Support Chain, with Major General Ian Copeland, Director Joint
Support Chain, as the senior officer responsible.
The key systems to be replaced are the base inventory
and warehousing systems, which are at risk of catastrophic failure
due to the age and obsolescence of these systems and the associated
infrastructure on which they are hosted. These systems are:
System 3, BODMS, AMANDA (Land).
The projects to introduce new Logistics Information
of the Joint Defence Inventory (MJDI)£183 million
Asset Management and Engineering Solution (JAMES)£83
million investment (2008-15).
Movements Operations (AMO)£65 million investment (2008-18).
Inventory and Warehouse Management Service (BIMS), to replace
the key systems listed above:
A. Costs for BIMS-A are embedded within the Delivery Partnership
contract with Boeing Defence UK. This £803 million Delivery
Partner contract has been funded through the brigading of existing
funding, with the efficiencies achieved from this exercise funding
the new BIMS-A capability.
Additional funding of £75 million has been agreed in the
2011 department budget for the remaining critical systems to be
replaced via the Delivery Partnership arrangements.
The major milestones of these projects and further
details are summarised at the Annex.
Q128. The committee requested to know when will
we be in a position not to release stock without a Nato stock
number. PUS's statement was that operational requirements would
mean that the possibility of un-numbered equipment being sent
to operations would always remain. Therefore what criteria determined
when stock/assets were issued without Nato stock numbers.
Current policy is that all items entering the Supply
Chain must be codified when an item is contracted, or the first
time an item is demanded, prior to deployment. In agreement
with Chief Joint Operations, no new item is to deploy to theatre
un-codified without express authority. The codification of existing
equipment already in theatre which had not been previously codified
is currently being addressed. However, it is acknowledged that
not all equipment components will be codified when fielded in
theatre due to two main factors:
urgency to field new battle-winning capability into theatre quickly,
within budget, will limit the level of support solution and reduce
the level of codification possible on that equipment.
level of parts to be codified will be based upon the anticipated
repair and support arrangements for that equipment. The failure
of some individual components will not have been predicted, especially
for new UOR vehicles, which will necessitate new spares to be
In addition, the Theatre Temporary NATO Stock Number
process enables previously un-codified materiel to be managed
once in Theatre. Recent DE&S activities have focussed on reducing
the number of un-codified equipments being deployed. These improvements
have seen increasing numbers of UOR equipment items (such as Protected
Mobility Vehicles) being suitably codified prior to deployment.
In the past 12 months over 18,000 UOR equipment items have been
Q178. How many consignments
went missing on operations in FY 2010-11?
The question related to the amount and cost of materiel
lost in transit, referring to the number of pallets lost during
Operation Granby in 1991. The relevant metric used for current
operations is the number of consignments, measured by the number
of ISO containers transported and held in theatre, which indicate
the amount and cost of materiel that has gone missing in the period
quoted. In FY 2010-11, for Op HERRICK, the number of containers
in the supply chain that were lost was 41, with a total value
of materiel lost of £358k. The total value of these losses
is therefore 0.7% of the total amount of materiel transported,
and 1.4% of containers transported. These were due to a combination
of theft, enemy action and damage in transit.
Q145. A comparison is to be made of the department's
logistics arrangements with international partners.
This work has been initiated by ACDS Log Ops, Air
Vice-Marshal Graham Howard, and an update to this action will
be reported in two months' time.
LOGISTICS INFORMATION SYSTEMSMAJOR
|1||Management of the Joint Deployed Inventory (MJDI).
||MJDI is the new system is being implemented in light of the operational shortcomings in the management of deployed assets and will contribute to improved materiel accounting in the deployed area across the three Services. MJDI is currently being rolled out incrementally, with the first variants already in service and delivering operational benefit, and will be fully rolled across Defence by March 2014.|
MJDI is already in use on Op ELLAMY and is currently being rolled out to Op HERRICK. MJDI remains on track to deliver Initial Operating Capability in Oct 11.
| Jul 11Increment 1.|
Oct 11Initial Operating Capability.
Feb 12Increment 3.
Mar 12Full Operating Capability.
Apr 12Increment 4.
Mar 14Increment 5.
| £183 M total through life.|
(FY 08-09 to 17-18).
£101M invested between
FY 08-09 to 10-11 to develop new capability.
|2||Joint Asset Management Engineering Solution (JAMES).
||JAMES is the Engineering and Asset Management application designed to provide equipment asset managers, engineers and commanders with the information needed to increase equipment availability and optimise asset usage and maintenance.|
It is a tool for the three front line services, DE&S and Defence contractors involved in the through life engineering and support of land-based equipment. The first increment of JAMES is already in service. The second and final major increment of JAMES was introduced into service in Dec 10 and is being rolled out over the next two years. JAMES is on target to achieve its Full Operating Capability on 31 Mar 14.
| Mar 10JAMES(1) Full Operating Capability (achieved).|
Dec 10JAMES(2) Service Commencement Date (achieved).
Mar 14JAMES(2) Full Operating Capability.
| £83M total through life|
(FY 07-08 to 14-15).
£65M invested between
FY 08-09 to 10-11 to develop new capability.
|3||Air Movements Operations (AMO).
||AMO will provide a passenger and freight management, capability to ensure the sustainable, safe and efficient operation of the Air Transport Fleet and MoD full air charter aircraft. It will deliver comprehensive air movements information enabling Commanders to make better informed and timely decisions based on an enhanced shared view of the logistic situation.
|| Jul 13AMO Initial Operating Capability.|
Dec 13Full Operating Capability.
| £65M total through life|
(FY 07-08 to 17-18)
£33M invested between
FY 07-08 to 10-11.
|4||Base Inventory and Warehouse Information Management Service (BIMS).|
To replace the following critical systems:
SCCS, WTMS (Air)BIMS-A
CRISP, WITS (Maritime)BIMS-B.
Stores System 3, BODMS, AMANDA (Land)BIMS-B.
|The Base Inventory & Warehouse Management Service (BIMS) is the major IS-enabled transformation programme to produce a single modern inventory management & warehouse information service for the base areas. It addresses the catastrophic risk, identified by the NAO, and will also be a significant contribution to achieving coherent materiel accounts. This project will be delivered incrementally:|
BIMS-A will replace the most fragile inventory systems and will de-risk the subsequent phases of the BIMS project
BIMS-B will replace the remaining base inventory and warehousing systems in an incremental manner.
| Mar 13BIMS-Afirst increment of the BIMS project replacing the Air base inventory systems at Full Operating Capability.|
2014 tbcBIMS-B. (Detail for BIMS-B milestones are subject to more detailed planning and formal project approval in autumn 2011).
| BIMS-A Costs £43M|
(FY 11-12 to 12-13).1
BIMS-B(up to £75M).
|5||Logistic Network Enabled Capability (Log NEC) Delivery Partner:|
Boeing Defence UK (BDUK).
|The Log NEC Delivery Partnership with BDUK is the major business change programme involving the rationalisation of the previously complex, cumbersome and inefficient information service provision arrangements into one which provides a continuity of service and can deliver the necessary transformation to support the increasing pace of wider Defence Logistics Transformation.|
BDUK's two new purpose-built data centres will provide a robust Business Continuity capability that mitigates the risk associated with the ageing data centres where the critical systems listed above (serial 4(b) are currently located.
BDUK is already contracted to deliver the first increment of the BIMS project (BIMS-A) which will see the replacement of the Air domain base inventory systems.
| Nov 10Contract Award (achieved).|
Mar 11Initial take-on of legacy service provision arrangements (achieved).
Apr 11 Establishment of first new Data Centre (achieved).
Mar 13Full Operating CapabilityBIMS-Afirst increment of the BIMS project replacing the Air base inventory systems.
| Total: £803M.2
£43M3new capability costs (BIMS-A).
£760M through life
(FY10-1121-22) sustainment funding for delivery of logistics information.
1 BIMS-A is funded within the £803 million
BDUK Delivery Partnership arrangements.
2 The new capabilities delivered by MJDI, JAMES
and AMO were established prior to the BDUK Delivery Partnership
arrangements and are therefore currently funded and contracted
separately with separate suppliers (Lockheed-Martin, HP(ES) and
THALES UK respectively).
3 An indicative figurethe £803 million
Delivery Partner contract has been funded through the brigading
of existing funding, with the efficiencies achieved from this
exercise funding the new BIMS-A capability.
These costs are the cost of military air transport, civilian air
charter and surface freight costs. Back
MJDI, JAMES and AMO were initiated prior to the Boeing Defence
UK Delivery Partnership and are currently funded and separately
contracted with Lockheed-Martin, HP(ES) and THALES. Back
The question related to the amount of materiel lost in transit.
It is considered that the number of consignments, measured by
the number of ISO containers transported and held in theatre,
provide the more relevant and significant measure to indicate
the amount of materiel that has gone missing in the period quoted. Back