Appendices and project summary sheets

244 Pages·2015·1.75 MB·English

Report
by the Comptroller
and Auditor General
Ministry of Defence
Major Projects Report 2015 and
the Equipment Plan 2015 to 2025
Appendices and project summary sheets
HC 488-II SESSION 2015-16 22 OCTOBER 2015
Our vision is to help the nation spend wisely.
Our public audit perspective helps Parliament hold
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The National Audit Office scrutinises public spending for Parliament and is independent
of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB,
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on good practice help government improve public services, and our work led to
audited savings of £1.15 billion in 2014.
Ministry of Defence
Major Projects Report 2015 and
the Equipment Plan 2015 to 2025
Appendices and project summary sheets
Report by the Comptroller and Auditor General
Ordered by the House of Commons
to be printed on 22 October 2015
This report has been prepared under Section 6 of the
National Audit Act 1983 for presentation to the House of
Commons in accordance with Section 9 of the Act
Sir Amyas Morse KCB
Comptroller and Auditor General
National Audit Office
20 October 2015
This volume has been published alongside a
first volume comprising of – Ministry of Defence:
Major Projects Report 2015 and the Equipment Plan
2015 to 2024 HC 488-I
HC 488-II | £10.00
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10814 10/15 NAO
Contents
Appendix Five
Definitions and classifications of cost,
time and performance causal factors 4
Appendix Six
Project summary sheets 6
The National Audit Office study team
consisted of:
Alex Black, Jeremy Gostick,
Matt Hemsley, Will Rollo, Michael Slater,
Rohan Soni, Lee Staley, Daniel Vulkan
and Tom White, under the direction of
Lee Summerfield.
This report can be found on the
National Audit Office website at
www.nao.org.uk
For further information about the
National Audit Office please contact:
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4 Appendix Five Major Projects Report 2015 and the Equipment Plan 2015 to 2025
Appendix Five
Definitions and classifications of cost, time and
performance causal factors
1 These classifications represent a broad categorisation of cost, time and performance
variations in the project summary sheet. The Department attributes these categories to
time, cost and performance variations in the project summary sheet. We validate the
appropriate use of each category. These categories are grouped into three broad headings:
• corporate decisions, that is decisions that are taken at the top of the Department
by senior management or ministers;
• project/technical issues reflect variations at a lower project level; and
• macro-economic or accounting adjustments, mainly resulting from changes the
Department makes in assumptions regarding exchange rates and inflation.
2 Three categories (receipts, changes in associated projects and HM Treasury
reserve) do not fit within these classifications. Variations attributed to these are often
relatively small.
Major Projects Report 2015 and the Equipment Plan 2015 to 2025 Appendix Five 5
Corporate decisions
Changed Capability Requirement Variations due to changes in the customer’s requirement for the
equipment, flowing from operational reassessment rather than
budgetary factors or because of support to current operations.
Budgetary Factors Variations due to changes in the customer’s requirement for
equipment, flowing from changed budgetary priorities.
Project or technical issues
Technical Factors Variations which are due to changes in technical ability to deliver
the project. This includes additional requirements specified by
safety regulators/inspectors.
Procurement Processes Variations due to changes associated with the contractual process
including time taken in contract negotiations and placing contracts,
effect of comparing contractor bids to estimates and variations
due to changes in overall procurement strategy, eg change to
collaborative options, or from competitive to single source.
Procurement Processes – As above, but relating to international contract negotiations.
International Collaboration
Contracting Process Variations due to changes associated with the contractual process,
(not included from 2009 onwards) including time taken in contract negotiations and placing contracts,
international contract negotiations and effect of comparing
contractor bids with estimates.
Macro-economic or accounting adjustments
Inflation Variations due to changes in inflation assumptions.
Exchange Rate Variations due to changes in exchange rate assumptions.
Accounting Adjustments and Variations that do not reflect any substantive change, and result
Redefinitions from changes to accounting rules, or adjustments to reflect
changes in defining terms.
Other (not classified into the three broad headings)
Receipts Variations due to changes in expectation of receipts, eg liquidated
damages, commercial exploitation levy.
Change in Associated Project Variations due to changes in an associated project eg availability of
equipment from another project for trials.
HM Treasury Reserve Recovery of additional costs incurred in support of current
operations.
6 Appendix Six Major Projects Report 2015 and the Equipment Plan 2015 to 2025
Appendix Six
Project summary sheets
Post-Main-Gate projects 7
A400M 8
Astute Class Submarines 26
Complex Weapons Pipeline 54
Core Production Capability 79
Lightning II 90
Marshall 108
Military Afloat Reach and Sustainability 116
Queen Elizabeth Class Aircraft Carriers 126
Scout Specialist Vehicles 143
Type 26 Global Combat Ship 154
Typhoon 162
Future Strategic Tanker Aircraft (Voyager) 189
Warrior Capability Sustainment Programme 201
Assessment phase projects 213
Apache Attack Helicopter Capability Sustainment Programme 214
Crowsnest 220
Morpheus 226
Successor 233
Post-Main-Gate projects
7
A400M
Project Name
A400M

Team Responsible
A400M

Senior Responsible Owner Date Appointed Planned end date
Air Commodore David Lee 20 July 2015 July 2018

Project/Increment Name Current Status of Projects / Increments
A400M Post-Main Investment Decision
Training Service Post-Main Investment Decision
In Service Support Post-Main Investment Decision

8