Appendices and project summary sheets - National Audit Office

249 Pages·2015·1.66 MB·English

Report
by the Comptroller
and Auditor General
Ministry of Defence
Major Projects Report 2014 and
the Equipment Plan 2014 to 2024
Appendices and project summary sheets
HC 941-II SESSION 2014-15 13 JANUARY 2015
Our vision is to help the nation spend wisely.
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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, is an Officer of the House of Commons and leads the
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public services, and our work led to audited savings of £1.1 billion in 2013.
Ministry of Defence
Major Projects Report 2014 and
the Equipment Plan 2014 to 2024
Appendices and project summary sheets
Report by the Comptroller and Auditor General
Ordered by the House of Commons
to be printed on 13 January 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
8 January 2015
This volume has been published alongside a
first volume comprising of – Ministry of Defence:
Major Projects Report 2014 and the Equipment Plan
2014 to 2024 HC 941-I
HC 941-II | £10.00
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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:
Sarah Bryant, Jackie Chu,
Jeremy Gostick, Helen Holden,
Matt Hemsley, Rachel Hollway,
Michael Slater, Mohammed Surti
and Martin Wheatley, 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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Enquiries: www.nao.org.uk/contact-us
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4 Appendix Five Major Projects Report 2014 and the Equipment Plan 2014 to 2024 – Glossary and project summary sheets
Appendix Five
Definitions and classifications of cost, time and
performance causal factors
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.
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 2014 and the Equipment Plan 2014 to 2024 – Glossary and project summary sheets 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.
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, e.g. 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 Variations that do not reflect any substantive change, and result
and 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, e.g. liquidated
damages, commercial exploitation levy.
Change in Associated Project Variations due to changes in an associated project e.g. 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 2014 and the Equipment Plan 2014 to 2024 – Glossary and project summary sheets
Appendix Six
Project summary sheets
Post-Main-Gate projects
A400M 2
Astute Class Submarines 17
Complex Weapons Pipeline 50
Core Production Capability 74
Future Strategic Tanker Aircraft (Voyager) 83
Lightning II 96
Military Afloat Reach and Sustainability 119
Queen Elizabeth Class Aircraft Carriers 127
Scout Specialist Vehicles 147
Typhoon 157
Warrior Capability Sustainment Programme 183
Assessment phase projects
Cipher 196
Crowsnest 203
Marshall 209
Morpheus 215
Successor 221
Type 26 Global Combat Ship 229
Concept phase projects
Attack Helicopter Capability Sustainment Programme 238
Post-Main-Gate projects
1
A400M
Project Name
A400M

Team Responsible
A400M

Senior Responsible Owner Date Appointed Planned end date
Air Commodore Jon Ager 25 April 2013

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

2