British Defence Staff Defense Related Policy and Procurement Developments in UK as well as within US...

British Defence Staff

Defense Related Policy and Procurement Developments in UK

as well as within USBritish Embassy team:

Jonathan Hoyle – Minister (Defence Materiel)

Adrian Baguley - Defence Science and Technology Counsellor

Andrew Radcliffe – Defence Equipment Counsellor

Bill Cruickshank – Attache Defence Equipment (Legal)


Agenda

• General Policy Overview & Global Context

• Facts & Figures• Procurement• Science & Technology• Industrial Strategy• Conclusions


General Policy Overview & Global Context


The UK Defence Policy Vision

• Defending the UK and its interests• Strengthening international peace and

stability• A force for good in the world• Achieved by being:

– Fit for the challenge of today– Ready for the tasks of tomorrow– Capable of building for the future


New Threats and Instabilities

• We face new challenges and unpredictable conditions.

• Strategy must evolve to reflect these new realities.

• This means:– Evolving strategy and military doctrine

that is flexible and geared to changing conditions.

– Behaving with speed, flexibility and creativity.


Military Imperative – since 1900(areas in red where US & UK forces have fought together since

1900)


Combined UK & US Ops Since 1990

UNMIL

Operation Enduring Freedom

ISAF

UNTAET

Operation Iraqi FreedomOperation Active Endeavour

KFOR

SFOR II

IFORUNOMIGUNPROFOR

UNIKOM

Operation Desert Storm

Operation Desert Shield


UK Defence Policy vis-à-vis US

“ Maintenance of the transatlantic relationship is fundamental to our security and defence policy”

“ Our Armed Forces will need to be inter-operable with US Command & Control structures”


March 2003 - Iraq

15 Marine Expeditionary

Unit

3 Commando Brigade

1 Marine Expeditionary

Force


Facts & Figures


DoD / MoD Comparison

• $442Bn ($148Bn proc/RDT&E)

• 3.3% of GDP

• Single-services train and equip

• Widespread acquisition community

• Several major prime contractors

• Strong Congressional influence

• $57Bn ($16Bn procurement, etc)

• 2.4% of GDP

• Tri-service reqs, research and acq.

• Focused acquisition community

• Single major national defence prime contractor

• Little legislative influence


Per Capita Defence Spending ($)


Defense Expenditure per Head of Armed Forces ($k)

USA

Japan

Italy

Russia

ChinaIndia Iran

TurkeyBrazil

Israel

Canada

France

South Korea

Saudi Arabia

UK

Germany

0

50

100

150

200

250

300


Equipment Expenditure per Head of Armed Forces ($k)

Australia

UK USA

Canada

Italy

France

Germany

0

10

20

30

40

50

60

70

80

90

100


Procurement


Public Perception


SMART Acquisition

• Deliver within time, cost and performance parameters

• Integrate• Reduce risk• Cut the time for new technologies to be introduced• Whole life approach• Clear customer / supplier relationship

“To acquire Defence capability faster, cheaper, better and more effectively integrated.”


A Vision…

ends

reduced by more than

Joy

delivery of

thrilled by the news that the DPA had yet again succeeded in delivering key

Cost reductions welcomed by defence chiefs


Major Project ReportHeadline Performance - Post Main Gate Projects

MPR 2003 MPR2004 In-Year Cost Variation £3,121m £1,731m In-year ISD slippage 144 months 62 months


Improve through-life management

Improve relationship with industry

Increase early investment to de-risk projects

Improve approach to project approvals

More effective performance/time/cost trade-off

Better skills planning, development & incentives

Improved corporate approach to business

Still More To Be Done . . .


Project Review & Assurance ‘Dashboard’

P r o j e c t { n a m e } - i l l u s t r a t i o nK e y P e r f o r m a n c e I n d i c a t o r s

T e c h n i c a l F i n a n c i a lR i s k M a n a g e m e n t M a t u r i t y

T h r o u g h L i f e M a n a g e m e n t

S e c u r i t y

S t a n d a r d i z a t i o n

T e c h n o l o g y

P r o d u c t i o n R e a d i n e s s

Q u a l i t y

C o s t e d P r o j e c t P l a n

P l a n n i n g a n d S c h e d u l i n g

I n t e g r a t i o n

C o m m e r c i a lS u p p l i e r C a p a b i l i t y / P e r f o r m a n c e

C o m m e r c i a l S t r a t e g y

T e n d e r P r o c e s s M a t u r i t y

C o n t r a c t T e r m s

P e r f o r m a n c e a g a i n s t K e y U R s / O u t p u t s

A s s e t D e l i v e r i e s

I n Y e a r M a n a g e m e n t

P o s i t i o n a g a i n s t K e y M i l e s t o n e s

C u s t o m e r a n d P a r t n e r R e l a t i o n s h i p O t h e r L i n e s o f D e v e l o p m e n t

P e o p l e a n d S k i l l s

F o r e c a s t a g a i n s t A p p r o v a l

R e l i a b i l i t y a n d M a i n t a i n a b i l i t y

E s t i m a t i n g

A f f o r d a b i l i t y

F i n a n c i a l G o v e r n a n c e

A c c o u n t i n g T r e a t m e n t s

I n v e s t m e n t A p p r a i s a l

S y s t e m M a t u r i t y

O v e r a l l R i s k E x p o s u r e

S a f e t y

R e q u i r e m e n t s M g t a n d I T E A

P r o g r e s s i n g s a t i s f a c t o r i l y

T i m e l y a c t i o n r e q u i r e d

P r o m p t a t t e n t i o n r e q u i r e d

I m p r o v i n g N o C h a n g e D e t e r i o r a t i n g

I n s u f f i c i e n t E v i d e n c e

A s s u r e d b y F u n c t i o n a l E x p e r t

N / A

S u p p o r t S o l u t i o n

M a t e r i e l F l o w

E n g i n e e r i n g & A s s e t M g t

L o g i s t i c S u s t a i n a b i l i t y

D i s p o s a l o r T e r m i n a t i o n

O p t i m i s i n g t h e S u p p o r t S o l ’ n

S u p p o r t t o C u r r e n t O p e r a t i o n s

F a c i l i t i e s

L e a r n i n g f r o m E x p e r i e n c e

I n f o r m a t i o n a n d K n o w l e d g e M g t

V e r s i o n 2 S e p 0 4


Joint Strike Fighter• UK requires 150 JSF:

– Replace RAF & RN Harriers– Equip 2 new carriers

• US lead co-operative venture• UK is sole Level 1 Participant• BAES is major contractor


Future Strategic Tanker Aircraft

• Replace 28 VC10’s / Tristars• High replacement capital cost• AirTanker Consortium Selected

– Airbus A330

• FSTA contracts for a ‘service’:– 5-8 aircraft needed for training etc.– Rising to ~20 during peak

operations– Contractor uses aircraft

commercially (for freight and passengers) when not required by RAF


ASTOR• World-leading airborne Ground

Surveillance system– First to interleave Ground Moving Target

Indication (GMTI) & Synthetic Aperture Radar (SAR)

– 3 operators (c.f. E10’s 35)– 5 aircraft, first flight imminent

• Contract is with US firm (Raytheon)


A400M• European

Multinational Airlifter– 7 nations– 180 aircraft

• Clear requirement for European airlift capability– Only current capability

is small UK C-17 fleet


Network Enabled Capability


Science & Technology


UK Defence Science & Technology Budget

• Annual UK Defence S&T Spend: $880M / £480M

Sustaining the

ability to

provide Advice

(22%)

Provision of

Advice (57%)

Technology

(21%)


UK Science & Technology Priorities

For Directed Research

• Command structures and decision support for NCW• Information and data management• Detection and identification of difficult targets, BDA and Combat

Id• Unmanned systems• Precision weapons, including for HDBT• CBR detection and countermeasures• Improved mobile communications• Recruitment, retention, reduced manning and duty of care• Detection and disruption of explosive devices• Technology Insertion• Modelling and simulation for effects based operations,

experimentation, urban ops, human systems and logistics supply chain


UK Science & Technology Priorities

For Innovative Research

• Autonomous systems• Wireless sensor networks• Generic biological detection and countermeasures• Novel sensor and processing technology• Active or Multifunctional material technologies• Technology enabling low cost, low maintenance or high

availability systems• Technologies to reduce environmental impact• Information systems• Power Sources


Towers of Excellence– Partnership with industry– Focus resources on priority

areas

•

– Improve transition and pull-through


Defence Technology Centres– Development of enabling-level

technologies– Formal collaboration between

MoD, industry and academia

Data Information Fusion Defence

Technology Centre


US - UK Collaborative Framework

The Technical Cooperation Program

120 Information Exchange Agreements

30+ Active Collaborative Research Programs

24 Collaborative Acquisition Programs


Cooperative Research Programmes

(12 new programmes totaling >$230m commenced in 2004)


Industry’s role in Cooperation

• Seeking to increase involvement of UK/US supplier bases in S+T collaboration– National research is being increasingly

contracted out to non-government bodies– Better prepare for technology transition– Early engagement increases viability of

downstream procurement collaboration

• Can be achieved:– Via government – industry contracting – Through government and industry partnerships


International Technology Alliance

• A new model of collaboration• UK/US government, industry and

academic partnership• Network & Information Sciences

– Network Theory– Security across a system of systems– Sensor information processing and delivery– Distributed coalition planning and decision making

• Competition in progress – ITA begins work early 2006


Industrial Strategy


UK Defence Industrial Policy

• Healthy & globally competitive defence industry - to provide the Armed Forces with:– the equipment they require– at best value for the taxpayer

• UK defence industry = suppliers who create:– value– employment– technology– intellectual assets

• Open & fair competition is the bedrock:– improved flow of info / tech across borders– no market distortion but wide range of factors


UK Defence Industrial Strategy (DIS)

• Recently announced.• Will build on the Defence Industrial Policy.• Address some of the more difficult

questions surrounding future of the defence industrial base.

• Intended to develop clearer joint understanding between Gov & Industry of essential technologies and capabilities.

• Publish before end 2005.


DIS Way Forward

• Will not address all industrial sectors by year end to the same depth.

• Work has to be prioritised.• Major decisions required shortly on key

acquisitions such as the Future Carrier project.• DIS will concentrate on:

– Shipbuilding and support– Fixed wing aircraft (Inc. UAVs)– Rotorcraft– Guided weapons– General munitions– Armoured fighting vehicles


DIS Expectations

• DIS will require change for MoD and wider government as well as supply side.

• This will include:– Reassessing the use of competition at different

stages.– Optimising contract durations to encourage

investment.– Fresh approaches to demonstrating value for

money.– Challenging structures, policies and processes.– Being more open and transparent.


DIS International Context

“We also need to be clear on the relationship with other technologies and equipment, developed by our allies. We – the MoD and industry – need to think carefully about where, and how, we match, complement, or disinvest in areas compared to key allies. I explicitly include continental Europe in that.”

Lord Drayson, Minister (Defence Procurement)15 September 2005


Conclusions


Immediate Challenges• Sustaining an adequate defence industrial base on an

inadequate defence budget

• Investing in new technology, developing new processes:– NCW / NEC– UAVs / UCAVs / UUVs– Pulling R&D through into production

• Interoperability and transatlantic cooperation:– Making the JSF work– Protectionism– Information sharing– Technology transfer restrictions

• Growing the talent - skills for industry & government


Why Cooperate?• Military Imperative

– Improved interoperability – More capable allies – increased burden-

sharing– Lessons identified / learnt

• Fiscal Imperative– Reduced research and acquisition costs

• Intellectual Imperative– Wider intellectual pool – Peer review

• Technology Imperative– Access to unique capabilities – Improved technology access


Questions?

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