british defence staff defense related policy and procurement developments in uk as well as within us...
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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)
British Defence Staff
Agenda
• General Policy Overview & Global Context
• Facts & Figures• Procurement• Science & Technology• Industrial Strategy• Conclusions
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General Policy Overview & Global Context
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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
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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.
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Military Imperative – since 1900(areas in red where US & UK forces have fought together since
1900)
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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
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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”
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March 2003 - Iraq
15 Marine Expeditionary
Unit
3 Commando Brigade
1 Marine Expeditionary
Force
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Facts & Figures
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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 ($16Bn procurement, etc)
• 2.4% of GDP
• Tri-service reqs, research and acq.
• Focused acquisition community
• Single major national defence prime contractor
• Little legislative influence
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Per Capita Defence Spending ($)
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Defense Expenditure per Head of Armed Forces ($k)
USA
Japan
Italy
Russia
ChinaIndia Iran
TurkeyBrazil
Israel
Canada
France
South Korea
Saudi Arabia
UK
Germany
0
50
100
150
200
250
300
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Equipment Expenditure per Head of Armed Forces ($k)
Australia
UK USA
Canada
Italy
France
Germany
0
10
20
30
40
50
60
70
80
90
100
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Procurement
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Public Perception
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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.”
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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
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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
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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 . . .
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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
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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
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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
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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)
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A400M• European
Multinational Airlifter– 7 nations– 180 aircraft
• Clear requirement for European airlift capability– Only current capability
is small UK C-17 fleet
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Network Enabled Capability
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Science & Technology
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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%)
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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
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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
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Towers of Excellence– Partnership with industry– Focus resources on priority
areas
•
– Improve transition and pull-through
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Defence Technology Centres– Development of enabling-level
technologies– Formal collaboration between
MoD, industry and academia
Data Information Fusion Defence
Technology Centre
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US - UK Collaborative Framework
The Technical Cooperation Program
120 Information Exchange Agreements
30+ Active Collaborative Research Programs
24 Collaborative Acquisition Programs
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Cooperative Research Programmes
(12 new programmes totaling >$230m commenced in 2004)
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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
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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
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Industrial Strategy
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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
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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.
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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
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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.
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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
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Conclusions
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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
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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
British Defence Staff
Questions?