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This paper sets out to identity the potential domestic market for military shipbuilders
in coming years. By summarising material available in the public domain on
present/future shipbuilding contracts in the defence sector. The paper is sourced
wherever possible.

The RAND Corporation has been asked by the Ministry of Defence to investigate
whether the UK has enough shipyards and skilled workers to supply the series of
contracted ships for the Royal Navy. The announcement was made as part of a one
year review of the Defence Industrial Policy between the MoD and Department of
Trade and Industry amongst concerns that the new ships to be built (including the
Type 45 Destroyers, the future aircraft carriers MARS and the Astute submarine
programme) will overwhelm the capacities of British shipbuilding especially in the
period 2007-2012. There are strong indications that two yards face very low order
books in the period 2005-2007 but their capacity will be required thereafter if all
future warships are to be built in British yards.

The paper covers the following projects:

   •    Type 45 air defence destroyer
   •    Future Surface Combatant
   •    Military afloat reach and sustainability (MARS)
   •    Maritime Aviation Capability
   •    Joint Casualty Treatment Ship
   •    Future mine countermeasures
   •    Inshore boats
   •    Astute class submarine
   •    Maritime underwater future capability
   •    Fast lift concept
   •    NATO submarine tender

   •    Surface warships – Warship support modernisation initiative
   •    Invincible class carriers – SLEP
   •    S & T class submarine update

Type 45 air defence destroyer

   •   The Prime Contractor is BAE Systems Electronics, who took over Marconi
       Electronic Systems (the prime contractor for Horizon). There is a large pull-
       through from the Horizon work into Type 45, for example PAAMS and some
       internal architecture.
   •   Originally Class of up to 12 ships. Cost of construction of the 12 ships is
       approx. £6Bn.
   •   The DPA has placed an order for six T45s at an expected cost of £4.3 billion.
   •   Demonstration, first of class manufacturer of Vessels (DFM) contract for first
       three ships valued at £1.2Bn .
   •   In Service Date of First of Class 2007.
   •   Main Gate Approval July 2000, DFM contract let December 2000.

   •   Design and construction of the six ships is to be split between BAE Systems
       and VT. Overall project management is the responsibility of BAE Systems.
   •   July 2001 & February 2002: announced that six ships would now be ordered
       and that the DFM contract with BAE Systems Electronics had been amended
       from three to six platforms, 3 years earlier than planned.
   •   It was also announced that the Prime Contractor had agreed and signed
       subcontracts with BAE Systems Marine and VT for construction and outfitting
       work on the first six ships.
   •   The work is expected to sustain about 2,000 jobs on the Clyde, 900 at
       Barrow-in-Furness, and 650 at VT.
   •   The first of the Type 45s, HMS Daring, will be assembled and launched at
       Scotstoun, and the Design Centre will remain there for the whole programme.
       For HMS Daring, VT will build and outfit the forward section of the ship, masts
       and funnels. These sections will be taken to Scotstoun for final
       assembly. BAE Systems Marine at Govan will produce all other steelwork
       which will be transferred to Scotstoun for building, assembly and launch.

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      •   The shipbuilding strategy announced in July 2001appears below.

      This schedule was changed on 21 January 2003 with the substitution of the BAE
      Sea Systems Clyde (Scotstoun) yard for Barrow.

      •   BAE Systems confirmed on 21 January 20031 that the final assembly of all
          Type 45's would now be done at Scotstoun. The change resulted because of
          the occupation of facilities by the delayed Astute Class submarines; the on-
          going difficulty of scheduling both Astute and Type 45 assembly in the
          Devonshire Hall; the poor track record of Barrow on surface ship construction;
          the logic of the yard concentrating just on submarines; and the economies
          resulting from consolidating all BAE's Type 45 work on the Clyde.
      •   The construction approach will see a modular block system in which different
          parts of the vessels could be built by different yards before being brought
          together for construction.
      •   After the first-of-class ship, VT will still build the same sections as for Daring,
          but outfit them to a much greater extent before shipping to Scotstoun. All


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        other Type 45 steelwork will now be supplied by just Govan. Scotstoun will
        assemble Block A (the stern block, including steering gear stores and
        accommodation) and Block D (the heart of the ship including the Operations
        Room and the Bridge).

    •   Steel working began on HMS Daring on 28 March 2003 at BAE's Scotstoun
        (formerly Yarrow) shipyard. The steel is actually being cut across the river at
        BAE's Govan yard and will be shipped to Yarrow for assembly starting
        Autumn 2003. Daring will enter service in 2007,
    •   The second, HMS Dauntless, will enter service in 2008. The third, HMS
        Diamond will enter service in 2010, HMS Dragon in 2011, and Defender and
        Duncan in 2012.
    •   For all ships of the class after HMS Daring a similar construction approach
        will be used (VT building and outfitting the forward section of the ship, masts
        and funnels).
    •   Stage one ship performance trials will be done at Scotstoun and stage two
        combat system performance trials will be done at VT in Portsmouth.
    •   Uncertainty remains over whether a final three will be ordered; the MoD's
        Equipment Plan 2003 does not include them and a final decision was
        expected in the Autumn 2003 Defence White Paper2, but is now likely to be
        announced in mid to late 2004. Recent prospects of a cut in the defence
        budget threaten to cut the projected number of Type 45s from 12 to 8.3

    •   A joint team of BAE Systems Combat and Radar Systems and Alenia Marconi
        Systems will supply the combat management system (CMS) and fast ethernet
        data transfer system for the T45s.

  The Defence White Paper: Delivering Security in a Changing World, December 2003, was more a
presentation of the policy base-line for future defence decisions.
  See ‘UK Minister hints at defence cuts’, available at

                                            4 of 35
•   Thales Communications Ltd are leading the team, which includes BAE
    Systems Avionics, which will provide the Fully Integrated Communications
    System (FICS).
•   Astrium (a joint venture of EADS and BAE Systems) has been awarded a
    contract to provide SCOT 3 satellite communications systems.
•   Raytheon Systems Ltd will supply the integrated navigation system.
•   Northrop Grumman (formerly Litton) Marine Systems with Rockwell
    Automation will provide the platform management system.
•   Alenia Marconi Systems will provide the METOC (Meteorological and
    Oceanographic) system.
•   The primary weapon system, the Principal Anti-Aircraft Missile System
    (PAAMS) - a tri-national programme involving France, Italy and the UK - has
    entered the full-scale engineering development and initial production phase.
    The prime contractor is Europaams SAS, a joint-venture company owned two
    thirds by Eurosam (MBDA and Thales), and one third by the UKAMS
    subsidiary of MBDA. The missile contract was placed the Organisme Conjoint
    De Cooperation En Matiere D'Armament on the 13 November 2003. The total
    value of the contract - which includes missile systems for France and Italy is
    £2.8bn. The UK contribution, for the purchase of the missiles themselves, is
    £278m. UKAMS are the prime contractors for the UK requirement.
•   The UK PAAMS has the BAE Systems Sampson multi-function, dual-face
    active array radar operating at E/F bands.
•   Alenia Marconi Systems, teamed with Radamec Defence Systems will
    provide the Electro-optical Gunfire Control System (EOGCS).
•   Wide-area long-range search is provided by the Alenia Marconi Systems
    S1850M radar operating at D-band, an enhanced version of the Thales
    Nederland (formerly Signaal) SMART-L.
•   Raytheon Systems Ltd will supply the Identification Friend or Foe system.
•   Ultra Electronics (with EDO Corporation of the USA) has been selected to
    provide the Type 45's Surface Ship Torpedo Defence (SSTD) system.
•   Thales Sensors (formerly Racal Defence) will supply the Type 45's radar
    band electronic support measures (RESM) system.
•   The vessels will have the Royal Navy's Outfit DLH active naval offboard
    decoy system from BAE Systems.
•   The Type 45 will be powered by two WR-21 advanced cycle gas turbine
    engines with intercooler and recuperator (ICR) heat exchangers. The engines

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           will be built by a team led by Rolls-Royce and Northrop Grumman. Alsthom
           Power Conversion Ltd will provide other elements of the power and
           propulsion system, including the electric propulsion motors.

       •   BMT Defence Services, in collaboration with Quintec Associates Ltd. and
           Devonport Royal Dockyard Ltd., has been awarded the Type 45 Destroyer
           Specialist Technical Support Contract by the MoD Type 45 Destroyer
           Integrated Project Team (IPT).

Beedall, Richard provides an in depth overview of all available sources in, Type 45.
                       Parts of his article are reproduced here.

Future Aircraft Carrier (CVF)

       •   Teams led by British Aerospace (now BAE Systems) which had teamed with
           Marconi Electronic Systems, and Thomson-CSF (now Thales) which had
           teamed with BMT Defence Services Ltd and Raytheon, responded in May
           1999 to the Invitations to Tender for an Assessment Phase (AP).
       •   Firm price contracts for the AP were awarded to both teams in November
           1999, each worth £30 million. BAE subsequently merged with Marconi, and
           Lockheed Martin joined the Thales Naval Ltd team in February 2000.
       •   The four year AP intended to place an order with a single Prime Contractor
           for delivery of the first of the two vessels in 2012 (in service date for the
           second vessel is 2015). The first AP stage was completed in June 2001.
           Stage 2 considered contractor views on the level of work needed to de-risk
           the programme sufficiently.
       •   The requirement to have the first carrier in service by 20124 means that
           production has to begin around early 2006 at latest. To achieve sufficient
           design maturity it was decided to award the Demonstration and Manufacture

    There has been a slight slippage, and ISD for the first CVF is now likely to be 2014.

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    contract in Spring 2004, meaning that the Main Gate would be no later than
    the turn of 2003/2004.
•   The ‘Future Carrier Alliance’ was formed, led by BAE Systems as the prime
    contractor with responsibility for project and ship building management.
    Thales assumed the major role as key supplier of the whole ship design. The
    MoD will provide necessary assets such as trained manpower and JSF
    aircraft, and manage appropriate risk contingencies.
•   The third stage of the AP has seen contracts totalling around £50 million in
    value being placed with BAE Systems and Thales UK in September 2003.
    The aim is to increase the maturity of the CVF design, optimise capability and
    value for money and reduce risks, paving way for a fully costed proposal for
    the Demonstration and Manufacture of the two carriers by late 2003.
•   AP3 will be completed by March 2004. The MoD’s business decision on CVF
    will be in 2004 and, assuming positive, the D&M contract will be awarded in
    Spring 2004.
•   COST: In June 2003, BAE Systems informed the MoD that the D&M Phase
    would cost £3.8bn compared with the budgeted £2.8Bn, making the total
    project cost for the two aircraft carriers £4bn.
•   With this cost increase, the Chief of Defence Procurement ordered an urgent
    review of the CVF project. The Future Carrier Alliance undertook a 'quick-
    look' study into a smaller and less sophisticated design which, while retaining
    provision for catapults and arrestor gear, would have a reduced air group.
•   During the summer of 2003, several options were considered because of cost
                -   Option 1 Two large adaptable carriers. Continuing with the
                    current 60,000+ tonnes design but subjecting it to a ruthless
                    cost-benefit analysis and a paring away of non-essential
                    features and capabilities without reducing size.
                -   Option 2 Two smaller ‘optimised’ carriers. In order to further
                    save costs and try to get with in budget the CVF design is
                    shrunk to the minimum practical size (about 50,000 tonnes
                    displacement) needed to retain ‘adaptability’ and still meet
                    most other key requirements.
                -   Option 3 Two smaller STOVL-only carriers of 40,000-45,000
                    tonnes displacement. The future proofing ‘adaptability’ is

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                         dropped to allow a further reduction in size and cost. This is
                         effectively a final fallback option.
                     -   Option 4 One large adaptable carrier. Just one large
                         'adaptable' carrier is ordered, and greater co-ordination is
                         sought with the French to help fill the gaps when she's not
    •   Option 4 was ruled out by the RN and MoD. Any move to shrink the ships
        (Option 2 or 3) would reduce their effectiveness. Full RAF support for both
        the CVF concept and the use of RAF aircraft and personnel for naval
        operations became crucial if Option 1 was to be viable, but this support was
        not forthcoming.
    •   During August/September 2003 a decision was apparently made in favour of
        option 2, and by October 2003 it appeared that a decision had been made to
        reduce the size of CVF from the original 290 metres in length to 265 metres5.
        This will reduce the amount of build work by about 20%, but a formal decision
        on the size, design and cost of the CVF's has now officially been deferred to
        completion of AP3 in early 2004.

    •   The Commons Defence Select Committee6 concluded that the main problem
        related to building the CVF's was of securing sufficient labour capacity in the
        shipyards at that time7, and that there were very few issues relating to
        facilities other than that of modernisation.
    •   The carrier alliance required a joint construction approach, combining BAE’s
        multiple shipyard modular construction approach and Thales’ “superblock’
        approach.8 Press releases at the end of January 2003 stated that the ships
        will be designed and built entirely in the UK, and indicate that shipyards at
        Babcock BES at Rosyth on the Firth of Forth, BAE Systems on the Clyde
        (both its Govan and Scotstoun shipyards), Swan Hunter on the Teeside and
        Tyneside and VT Group at Portsmouth will play a key role. The four yards will
        be allocated specific ship sections, but it is understood that half the value of

  The new ‘optimised’ length is the minimum required for the fitting of catapults, but favours the
STOVL option. STOVL aircraft have greater flexibility than CTOL aircraft, can operate in worse
weather conditions and have a higher launch rate.
  Defence Select Committee, Warship Building Strategies, Fourth Report, July 2002, Session 2001-02.
  The CVF contract is expected to create about 2,000 jobs and to secure a further 10,000 at UK
  A modular construction approach has been chosen because there are no longer any UK shipyards with
the capacity, facilities, and requisite design and construction skills for a project of this size.

                                             8 of 35
           the contracts they receive will be subcontracted by competition. The final
           assembly and hook-up will be done by Babcock BES at Rosyth using the
           modules supplied by BAE Systems, Swan Hunter and VT Group. Other
           shipyards have not been ruled out completely, but there seems little
           opportunity left for any substantial work.
    •      VT has been assisting both BAES and Thales in their initial ship studies
           and is keen to contribute its design, construction and support expertise to
           the programme. VT would carry out construction of blocks at its new
           state-of-the-art Portsmouth Shipbuilding Facility (PSF). This is likely to
           necessitate future expansion of the facility. In a similar build strategy to
           the Type 45 destroyer, the sections of the CVF built by VT would be
           transported by barge for subsequent assembly in Scotland. With the
           ships being base ported in Portsmouth, VT’s joint venture Fleet Support
           Limited (FSL) is also ideally placed to play a significant role in their long-
           term support.
    •      The first steel cut is to be in 2005.

    •      Design will ensure maximum flexibility for a service life of up to 50 years.
           Design will be for STOVL but optimised for future conversion for CTOL.

    •      The STOVL variant of the US JSF has been chosen to succeed the Harrier
           from 2012. The MoD is providing 10% of the cost of the STOVL concept
           demonstration phase of the JSF programme.

    •      The Maritime Airborne Surveillance and Control (MASC) programme is
           currently in the Concept Phase, with an Initial Gate decision planned for 2003,
           followed by a Main Gate decision in 2006. An in-service date of 2012 is
           planned for the AEW aircraft selected.

    •      The carrier's propulsion system will be Integrated Full Electric Propulsion
           (IFEP) based on four gas turbines; Nuclear propulsion was deemed too
           expensive. The optimum location, not yet decided, will maximise the hangar
           space below decks. CVF range will be 8,000 miles.

                                             9 of 35
Subcontracts & Prime Contractor Team at January 2003
   •   BAE Systems Future Carrier Office - Prime Contractor, design authority.
   •   AMS - C4ISR, Information Systems and Systems Engineering.
   •   Babcock BES - Ship Build Strategy (including final ship assembly) and
       Collaborative Through Life Support.
   •   BAE Systems - C4ISR, Collaborative Through Life Support.
   •   BAE Systems Sea Systems Group - Ship Design and Build Strategy.
   •   EDS - Systems Integration.
   •   Fleet Support Ltd - Collaborative Through Life Support.
   •   Lockheed Martin - Program Management, Systems and Requirements
       Engineering, Carrier Air Group Optimization, C4ISR.
   •   Northrop Grumman - Mission Planning, Air Traffic Control, Ship Build
       Strategy, C4ISR.
   •   QinetiQ - Technology Insertion and Test & Evaluation Programmes.
   •   Rolls-Royce - Propulsion and Through-Life Support.
   •   Strachan & Henshaw - Munitions Handling and Waste Management.
   •   Swan Hunter - Ship Build Strategy.
   •   VT (Vosper Thornycroft) Shipbuilding - Naval Architecture, Ship Build
       Strategy, Human Factors, Through Life Support, Control Systems.
   •   Thales Naval Ltd - provision of whole ship design, and a "key supplier"; and
   •   BMT Defence Systems - naval architects.

Baghaei, Ali: ‘Innovating to bring the best out of both teams’, Excellence in Defence
              Procurement, 2003.

Beedall, Richard provides an in depth overview of all available sources in, The
                  Future Aircraft Carrier. Parts of his article are reproduced here.

                                        10 of 35
Future Surface Combatant
Future Surface Combatant (FSC) – Replacement for T22 & T23 Frigates
   •   SDR recast the 1994 Future Escort programme as the FSC.
   •   FSC is currently in the Concept Phase. Prime Contractor selection is
       estimated in 2007. Initial Gate is not anticipated until Spring 2004 and Main
       Gate an optimistic late 2008. The ISD of the first unit into service has slipped
       to December 2015 or later. The number of units planned has been reduced
       from 20 to 18.
   •   October 2001 - Delays resulted examination of options for an Interim
       Capability Frigate to bridge the gap between the out-of-service date for Type
       23s (2013) and the introduction of the FSC in late 2015. A T23 Ship Life
       Extension Programme (SLEP) was investigated, as were buying or leasing
       foreign warships, new build frigates based on the T45 hull, and advancing
       FSC. As of July 2003, pay-off without replacement and ad-hoc measures to
       extend the service life of the T23's seem to be the selected solution.
   •   A draft document of User Requirements for FSC was circulated in early 2003.
       Further refinement has continued through September 2003 with the goal of
       making the resulting User Requirements Document the baseline for the
       beginning of formal acquisition (Initial Gate) in early 2004. A four-year AP will
       lead up to a submission for Main Gate approval in late 2008. This will be
       followed by the Demonstration and Manufacture Phase, currently scheduled
       to meet a tentative ISD for planning purposes of December 2015.
   •   A final decision on the FSC hull configuration was originally expected to be
       taken in 2002, but this has slipped to 2005. By this time the demonstrator
       vessel RV Triton should have fully proven whether a trimaran solution does
       indeed give the advantages that its supporters advocate, at an acceptable
   •   The FSC programme remains poorly defined and it will not become a top RN
       priority until the new CVF aircraft carriers are firmly on order (scheduled for
       Spring 2004) and USN's direction towards future warships is clear.

Trimaran Hull Design
   •   One design option for the FSC is the trimaran hull concept with a slender
       main hull and two outriggers.
   •   Work by QinetiQ (formerly DERA), UCL and VT has confirmed that a trimaran
       hull form does reduce drag by about 20 percent at high speeds compared to a

                                       11 of 35
       single hull. The lower resistance will permit higher speeds to be achieved, or
       a reduced machinery fit leading to lower through-life costs.
   •   Research Vessel Triton: Launched as a demonstrator model in July 1998,
       designed by the UK's Defence Evaluation and Research Agency (now
       QinetiQ) and built by VT under contract (£13m contract from DERA).
       Constructed to examine the costs and risks to structural integrity associated
       with a novel trimaran hull solution. RV Triton is under authority of QinetiQ for
   •   The first phase of the trials began in October 2000 and will last until mid 2003.
       The second phase of the trials, which will be carried out from 2003 to 2004,
       emphasises the installation and trials of high technology systems.
   •   The third phase involves the Trimaran becoming a general trials ship. The
       ship will be used as a testbed for a range of naval systems
It is still not certain that a trimaran hull will be selected rather than a more
traditional mono-hull design.

Alternative: Alternative Platform (Type 45 derivative)
   •   BAE Systems prefer a monohull design for FSC.
   •   It is being investigated whether the large Type 45 hull design may form a
       suitable basis for the FSC, with its role changed from an emphasis on area air
       defence to land-attack, ASuW and ASW.

Alternative: Mother Ship Design
   •   In March 2003 BMT Defence Services Ltd was awarded a quick study
       contract by the MoD to explore the feasibility of 'mother/ daughter' ship
       concepts as a potential solution for the FSC capability requirement.
   •   BMT DSL will lead a team including University College London and BM
       Consulting for the Concept Design for Heavy Lift Mother-ships for the DPA.
   •   BMT's Future Fast Flexible Frigate (F5): In August 2003 BMT DSL and BMT-
       owned Nigel Gee and Associates (NGA) unveiled a pentamaran frigate
       matched to the notional requirements for the FSC.
   •   The F5 frigate synthesis work by BMT DSL and NGA has drawn on the
       latter's earlier commercial pentamaran design studies.

Design & Systems
   •   The FSC design will almost certainly use a new full electric propulsion system
       (IFEP) that is also being developed for the CVF.

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   •   Missiles - Possible fits are 24 Raytheon Tomahawk Block IV (TacTom) or
       MBDA SCALP Naval for LACM; 32 Europaams Aster 15 for SAM; 8
       McDonnell Douglas Harpoon Block II for SSM; 2 x 11 Raytheon Sea RAM for
   •   Radars – Possibly the Alenia Marconi Systems S1850Mfor the Long Range
       Air/Surface Search; the BAE Systems Sampson Smartello MFR for D-
       band Surveillance & PAAMS Fire Control; the Racal Decca Type 1008 E/F
       band Navigation.
   •   Sonar - Either the Ferranti/Thomson Sintra Type 2050 or a new bow-mounted
       active search and attack system; the Thomson-Marconi Type 2087 active
       low-frequency towed body with a VLF passive array.
   •   Aircraft - Large flight and hanger for 2 Westland Lynx HMA.8, or 2 x EH101
       Merlin, or 2 x V-22 Osprey, or Unmanned Air Vehicles. (Stingray ASW
       torpedoes and Sea Skua ASuM missiles).
Beedall, Richard provides an in depth overview of all available sources in, The
                Future Surface Combatant. Parts of his article are reproduced here.

Military Afloat Reach and Sustainability (MARS)
   •   The MARS IPT, formed in July 2002, is conducting studies into the capability
       required to provide logistic support to Royal Navy vessels at sea. The initial
       focus will be on the ability to Replenish At Sea (RAS).
   •   The project is still in the Concept phase and has now started to engage with
       industry. MARS could provide orders for between eight and twelve ships over
       the next 15 years.

MARS shipbuilding & ownership
   •   There is currently a debate over hull ownership for future MARS vessels.
       Possible alternatives are a Public Private Partnership scheme, the use of
       sponsored reserves, or the hulls being owned and operated/crewed by the
   •   One option for construction is to build the hulls abroad and to then complete
       the high value fitting out work in the UK. Construction of the hulls will be

                                      13 of 35
        subject to European procurement rules unless they are considered to be
    •   Such a construction option would be similar to the Roll-on Roll-off (RoRo)
        Strategic Sealift ship programme. As the requirement was non-warlike,
        competition for the RoRo contract was conducted under EC Treaty and public
        procurement rules. Four companies bid for the contract: NOVOMAR, The
        Maersk Company, A.W.S.R. Shipping Ltd, and Sealion.
    •   On 26 October 2000 it was announced that A.W.S.R. Shipping Ltd had been
        selected as the preferred bidder for the 25-year RoRo PFI contract9. Under
        their plan, two ships were to be built at the Harland and Wolff shipyard in
        Belfast and four ships at the Flensburger Schiffbau-Gesellschaft shipyard in
        Germany. This would provide earlier availability.
    •   June     2003:     The     MoD      took     delivery    of    its   Strategic     Sealift
        service 20 months ahead of its target date, following delivery of the
        final RoRo cargo vessel to the contractor.
    •   AWSR Shipping Ltd is responsible for the provision of the crews, operation
        and maintenance of the RoRo ships. When in MoD use, AWSR must provide
        completely British officer and merchant seaman crews for the ships, and after
        a phase in period these seafarers will be eligible for call out as Sponsored
        Reserves for operational requirements.

Royal Fleet Auxiliary (RFA) single-hulled vessels
    •   The formation of MARS is partly the result of a need to replace the presently
        operated ageing single-hulled vessels of the RFA.
    •   MARPOL (the International Convention for the Prevention of Pollution from
        Ships 1973 and the Protocol of 1978) provides for the phased introduction of
        double-hulled tankers.
    •   The RFA has nine single hull oil transporters10, and the MoD’s current target
        date for replacing the fleet with double hull tankers is not until 2010. 11
    •   If the RFA were to observe the single hull phase out, three of their smaller
        tankers, with International Maritime Organisation category two status, would
        have to be abandoned in 2004. A further six category one tankers would be
        replaced by 2005.

  The contract will be worth approximately £950M over 25 years (until December 2024), depending
upon the amount of operational usage.
   Approximately 30 single hull vessels overall.
   …although such planning is subject to change according to changes in public opinion.

                                            14 of 35
   •   A MARS defence review of the Royal Navy’s future requirements is in its
       initial stages, and plans are to gradually bring in double hulled vessels to
       replace the ageing flotilla. The first such compliant vessels, the Auxiliary
       Oilers RFA Wave Knight and RFA Wave Ruler, entered service in 2003 and
       are the most modern ships.
   •   There is preliminary consideration for a SLEP for the present Wave Class
       Tankers to increase their capacity without changes to any propulsion or main
       systems. The aim would be to fit them within then scope of MARS thinking.
       SLEP is being considered because the ministerial exemption from EU
       regulations regarding single-hulled vessels until 2010 is a date before which
       MARS ships would be available.

Wave Class RFA Large Tankers
   •   BAE Systems was awarded a £200 million contract for the construction of
       RFA Wave Knight and RFA Wave Ruler in 1997. Wave Knight was built in
       Barrow-in-Furness, launched in September 2000 and transferred to
       Inchgreen, Greenock, under her own power in September 2001. Contractor's
       sea trials took place in the Firth of Clyde and she was accepted off contract in
       October 2002. Wave Knight was commissioned in March 2003
   •   RFA Wave Ruler was built at BAE's Govan yard. Wave Ruler was launched in
       February 2001 and commissioned in April 2003.
   •   The project is being managed by the Auxiliary Oiler IPT.
   •   The 30,000t large fleet tankers replace the Olna and Olwen, built at Swan
       Hunter and Hawthorn Leslie in the1960s.
   •   The tankers may be deployed away from the UK for the complete period of its
       docking cycle, which at present is every 2.5 years.
   •   In Spring 2001 it emerged that BAE Systems had placed an unsolicited bid
       with the MoD to build a further two Wave Class tankers. This speculative
       tendering seems to result from the fact the BAE is struggling to provide
       enough work to keep its three yards at Govan, Barrow and Scotstoun afloat.
       Reportedly, Govan is not in a position to begin cutting steel for the two Bay
       Class Landing Ships and, with only a tug (being built for Stirling Offshore )
       and ten small landing craft (for service with Albion Class Assault Ships) under
       construction, has extra shipbuilding capacity. BAE believe that experience
       gained in the construction of Wave Knight and Wave Ruler will allow
       significant savings to be made in the construction of additional vessels.
       However the MoD have indicated they are unlikely to accept the bid because

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       of the cost overruns and claims on the MoD from the present Wave Class

Capability of Wave Class Tankers
   •   The ships have the capacity to transport 616,000m³ of issuable cargo fuel
       which has a minimum flash point temperature of 60° .
   •   The RASCON RAS equipment is supplied by Rolls-Royce (Clarke Chapman).
       The package of abeam and astern re-fuelling systems includes the RAS
       system, an ammunition handling crane specially fitted out for abeam re-
       fuelling,   steering   gear    and    rudder    packages,   thyristor-controlled
       winch/windlasses and double drum mooring winches.
   •   The ship, equipped with onboard reverse osmosis equipment, has the
       capacity to manufacture 100³ of potable water per day, and is capable of
       carrying and delivering 380m³ of potable water. The ships can also transport
       and deliver other fluids in bulk tanks and in barrels.
   •   The dry cargo capacity is 500m³ together with space, access and power for
       eight 20ft refrigerated container units.
   •   The ship is armed with two 30mm cannon and can be fitted with two
       Raytheon Phalanx Mk 15 close-in weapon systems (CIWS). The ship will be
       fitted with air/surface search and navigation radars.
   •   The tanker is capable of supporting the Merlin helicopter and is capable of
       operating a Merlin-sized helicopter in high seas up to Sea State 6.
   •   The ship is equipped with an Integrated Bridge Navigation System (IBNS),
       supplied by Kelvin Hughes. The IBNS has a Digital Programmable Primary
       Internal Communications System (DPPICS) and an Integrated Platform
       Management System (IPMS) including: machinery control and surveillance,
       damage surveillance and control, electrical power control and management
       and refuelling at Sea/Cargo Ballast Control (RASCON) functions.
   •   The communications suite covers a very wide band, MF/HF and V/UHF, with
       external military and civil communications and a civil satellite communications
       system (SATCOM).
   •   The ship's diesel-electric propulsion system is based on a 14MW ALSTOM
       variable speed, bi-directional AC electric drive motor, controlled by a
       CEGELEC synchro-converter. Four generators, supplied by ALSTOM and
       each providing 4.69MW, are driven by Wartsila V12 VASA32 (Lox Nox) diesel
       engines. The engines drive a single fixed pitch propeller and shaft. The ship is

                                        16 of 35
       equipped with an 18t thrust electric bow thruster and a 12t thrust electric stern
       thruster. The ship's auxiliary diesel engine provides 1.6MW.
   •   The ships propulsion system provides a maximum speed of 18 knots and a
       minimum sustainable speed of 4 knots for up to 12 hours, without detriment to
       the machinery. The range exceeds 8000 nautical miles.

Maritime Aviation Training Capability (MATC)
   •   MATC is presently an open forum for debate. Assuming that funding is
       available, the first stage of concept studies will begin in 2004 and continue
       through 2005.
   •   MATC could be a ship or simulator, or a combination of both. There is a
       significant question over the appropriateness of using an Argus replacement
       for training helicopter pilots. Some question its operational utility, since
       helicopters will actually be landing on warships that are less visible and
       probably smaller – a simulator able to imitate operational conditions may a
       better alternative, or a land based landing strip capable of mimicking
       operational, at sea conditions.
   •   The concept studies phase will examine both extremes; simulation potential
       using a mobile platform with current ship assets, or a fixed platform.
   •   Methods of funding will also be examined during this concept studies phase.
       There is a possibility of a PFI solution and/or the formation of an IPT. At
       present MATC falls under the auspices of the Future Business Group (FBG).
   •   MATC is intended to replace the aviation training role of RFA Argus, which
       underwent a difficult and expensive four year conversion (from 1984) worth
       £50 million at Harland and Wolff in Belfast that saw her rebuilt as an Aviation
       Training Vessel. The rebuild involved the sealing of her bow doors and the
       building   of   a   large   forward   superstructure,   which   included   extra
       accommodation. A flight deck was constructed and strengthened with a
       concrete underside 5ft thick. Two aircraft lifts were included to provide access
       to four hanger spaces beneath the flight deck, each of which can be secured
       with watertight doors

Interview with Tony Friday of FBG, 21 November 2003.

                                         17 of 35
Operational Maintenance and Repair (OMAR)
   •   A suggested replacement for RFA Diligence, OMAR is presently a debate in
       its infancy under the auspices of the FBG.
   •   OMAR is presently aspirational and has no funded line.
   •   As a replacement for RFA Diligence, current thinking on the role of OMAR is
       on first stage repair.
   •   First stage repair will aim to keep frontline ships operational, and focuses on
       maintenance and low scale repairs. OMAR is not envisioned to fulfil any
       salvage role.
   •   A concept studies phase, which should begin when OMAR receives funding,
       will determine funding options for OMAR and the construction approach.
   •   Presently two areas of construction are being focused on; a hull and/or
       modular approach. Possible alternatives at this stage include a combination
       of both approaches, two small hulls to enable concurrency or one dedicated

Interview with Tony Friday of FBG, 21 November 2003.

Joint Casualty Treatment Ship
This facility has had a number of names in the past such as Primary Casualty
Receiving Capability

   •   SDR called for the upgrading of the 100-bed surgical facility aboard the
       Aviation Training Ship RFA Argus and ‘the procurement of a 200-bed Primary
       Casualty Receiving Ship, with a second one available on contract at longer
       notice if required’ by 2005.
   •   The notice envisaged for this second vessel was a year, and early work
       indicated that simply chartering a hull when needed for conversion would be
       no less effective than having a specific vessel under contract with a view to
       conversion. The project is therefore based on developing one facility, which is
       now referred to as JCTS (Joint Casualty Treatment Ship).
   •   The IPT was formed in 1999 to undertake the Concept Phase during which
       the requirement was refined using OA, a User Requirement Document was
       generated and the procurement strategy was determined.

                                      18 of 35
   •   Stage I of the Assessment Phase to identify practicable technical concepts
       began in December 2001 immediately after Initial Gate Approval.
   •   A contract was let with BMT DSL to first generate a generic hospital layout, as
       a baseline for considering how such a facility might be deployed afloat.
   •   A contract was let in July 2003 for support to the completion of the System
       Requirement Document (SRD), which will occupy much of the IPT’s effort
       over the next twelve months.
   •   In August 2003 Atkins Aviation and Defence Systems won a contract to
       develop a detailed SRD following on from earlier assessment activities
       exploring generic platform and medical complex options.
   •   Current plans envisage the issue of Invitations to Tender for the design and
       construction of the ship in mid 2005. Down selection is planned for 2006.
   •   The ISD for JCTS will not be set until a contract is let for its development and
       manufacture, as this will depend on the technical approach adopted.
       However, the planning assumption is towards the end of the decade.
   •   RFA Argus was refitted during 2000-01 under the direction of a different IPT,
       and is currently scheduled to remain in-service in her medical role until JCTS
       enters service.

   •   Early thinking envisaged a PFI solution, with a service-provider making use of
       spare capacity to generate third-party revenue. However, studies have
       demonstrated that there would be no genuine likelihood of risk transfer, nor
       could third party revenue be generated from non-governmental sources. The
       MoD has considered use of the civilian Hospital Ship Africa Mercy. However,
       her facilities and capacity fall short of the MoD's requirements.
   •   The project is therefore proceeding as a conventional procurement, although
       investigations are continuing into using spare capacity once JCTS is in-
       service to generate third party revenue.

Other JCTS Roles
   •   As guaranteed peacetime usage of JCTS is limited to some eight weeks
       training per year, consideration has been given to using an existing naval ship
       and making it capable of taking a modular hospital when required. It has been
       determined that no vessel would be available and such a solution has been
       found to be high risk.

                                       19 of 35
   •   Consideration is still being given to combining JCTS with another capability,
       such as the forward deployment of aviation.


Future Mine Countermeasures – a replacement for the Hunt Class
   •   The DPA issued an invitation to tender for the Assessment Phase of the
       Royal Navy's projected Replacement Influence Minesweeping System (RIMS)
       programme in January 2001.
   •   RIMS proceeded to Initial Gate approval in April 2001, with two parallel 24-
       month Assessment Phase contracts being awarded in June 2001. A
       competitive bid evaluation should then determine the selection of a sole prime
       contractor to proceed into the Demonstration and Manufacture phase.
   •   Main Gate approval was received in June 2003, with an in-service date of
       October 2007 currently planned. The RIMS budget is put at about £150
   •   The initial assumption, based on present sweeping capability and the
       operational flexibility offered by the new equipment, is that the RN will require
       four RIMS to replace the current 13-ship Combined Influence Sweep (CIS)
   •   Concept Studies will be managed by the Project team with DERA and
       Industry involvement.
   •   RIMS is intended to replace the CIS capability currently provided by the Hunt-
       class mine countermeasures vessel (MCMV). RIMS will be required to
       operate in mine setting, target setting and mine neutralisation modes. The
       system should have the capacity to be upgraded by technology insertion to
       counter future threats.
   •   It is understood that Germany's Troika is representative of the baseline
       performance level which the RN wishes to improve on.
   •   Among the additional capabilities required is control of up to four drones. It is
       likely that the study will note proposals put forward under the NATO NIMS
       and US ALISS programmes, the UK having lately been allowed to take part in
       the   US      DoD's   Joint   Countermine   Advanced    Concepts    Technology

                                        20 of 35
       Demonstration (ACTD). The RIMS staff requirement should have been
       defined in 2000, enabling production systems to start delivery in 2005.

Inshore Boats – Minor Warships, Auxiliaries and Boats IPT

Motorised Canoes
   •   Contact placed for the requirement of up to approximately 20 motorised
       canoes suitable for inshore waters and for use with 15hp OBM.

Safety/Training Boat
   •   Safety/Training Boat for use by Naval Cadet Force Units. Requirement for 10
       per annum. ITT Mid 2003.

5.4M Petrol RIB
   •   GRP RIB for use by the RN and Defence Police. For the RN diesel propulsion
       would be preferable. ITT expected mid/late 2003, requirement for
       approximately 5 per annum. It is suggested that 70% of the number required
       are for the RN role.

Inflatable Boats
   •   Tenders for the next generation of up to 70 Inflatable Boats for the RN and
       RM are currently being assessed by the Minor Warship, Auxiliaries and Boat
       (MWAB) Integrated Project Team.

Offshore Raiding Craft
   •   Hard-hulled raiding craft with high load capacity, for use by RM to deploy
       troops onto shore from ships. Requirements currently met by RC Mk3
       (diesel/propeller drive). A larger craft with water-jet is the likely replacement
       requirement. ITT is expected mid/late 2003, with a requirement for 6 – 8 per

Diesel RIB (SOLAS ‘Fast Rescue Boat’ / Ships’ Seaboats)
   •   Requirement currently met by PACIFIC 22 RIB for lager RN sips. A contract
       has been placed for a new design craft to be evaluated for selected ships,
       with an approximate requirement of 12 – 14 per annum.

                                       21 of 35
6.5M/7.0M Petrol RIB
   •   RM high speed boarding boat. Requirement currently met by ARCTIC 22 RIB.
       Future requirements are under review, and may result in more than one
       variant being required.

Type 45 Seaboat – Diesel RIB
   •   New design sea-boat for Type 45 Destroyers. Higher performance and
       capacity required compared to existing RN Seaboats – waterjet propulsion
       may be required. Requirement for approx. 15 with an initial order of 1 boat for
       extensive evaluation prior to production order. ITT mid 2004.

14M Army Workboat
   •   Workboat capable of being deployed from ships to support amphibious
       landing operations. Requirement currently met by steel workboat fitted with
       single diesel engines. ITT late 2003, 4 required.

Police launch
   •   Patrol launch for year-round operations in UK and Gibraltar waters. User
       requirements under review – possible mixed fleet required. ITT late 2003, with
       an initial order of 1 boat with options for up to 8 additional craft.

Sail Training Craft
   •   Replacement for Nicholson 55 STC for operations up to MCA ‘Category 1’ –
       smaller craft likely to be suitable. Requirement for up to 4. Funding priorities
       presently under review.

Pacific seaboat
   •   The Royal Navy's latest high-powered seaboat, the Pacific class, are £80,000
       vessels    optimised    for   boarding    operations.    Equipped       with   special
       communications and GPS receivers the boats have been developed by the
       MWAB IPT and Halmatic Ltd.

In service support
   •   VT Integrated Logistics has secured an enabling contract to survey and repair
       nearly 1,000 Royal Navy small craft based throughout the UK. VT Integrated
       Logistics has carried out a similar activity in the South and South West for the
       past six years, with the work being undertaken by VT Halmatic at Portchester
       and the VT Marine Services facility at Sandquay, Dartmouth. Under the new

                                         22 of 35
         contract, VT is offering this service nationally and will have responsibility for
         performing a similar activity in Scotland where it has entered into a partnering
         arrangement with Silvers Marine Ltd., Helensburgh. The £5m. p.a. contract
         covers MoD Power Boats up to 16 metres in length and applies to 28 different
         types of craft. VT Integrated Logistics ability to offer the service on a basis of
         integrated national cover along with value for money were two key factors in
         securing the contract.
   •     A feature of the contract could involve expanding facilities at Sandquay to
         include a new slipway and dry dock. This would improve VT Marine Services
         ability to bid for more commercial boat maintenance and repair such as RNLI
         lifeboats and HM Customs and Excise craft.

Hydrographic and Oceanographic Survey Vessels
   •     VT Integrated Logistics has introduced a sponsored reserve scheme to
         enhance its 25-year Contractor Logistics Support commitment to the new
         oceanographic and hydrographic survey ships Echo and Enterprise.
   •     The sponsored reserves will offer valuable on-board support to the existing
         VT Contractor Logistic Support engineers who provide a 24-hour service.
   •     The support service will operate worldwide and the VT team will work closely
         with the MWAB IPT. It will cover all aspects of support for the ships including;
         maintenance     support,   spare    parts   supply    and   delivery,   technical
         documentation and specialist training.

MWAB IPT Seawork Exhibition presentation to industry, June 2003. Contact: Allan

Astute Class Submarine

   •     The order for the first three Astute units (with an option for a further two) was
         placed with GEC-Marconi (now part of BAE Systems) on 17 March 1997 and
         the value of the contract was put at £2 billion, including a Swiftsure and
         Trafalgar Final Phase Integration Task and Contractor Logistic Support (CLS)
         for the first 4.5 years from the ISD. The contract is incentivised through a

                                         23 of 35
           shareline arrangement which allows the company and MoD to share cost
           under/over-runs up to a maximum price.
       •   The total programme cost of the first three units was expected to be
           £2,698m12. On 19 February 2003 it was announced that, in the face of
           disastrous cost overruns, the government had agreed to increase its funding
           to BAE Systems by around £430m, while BAE would also contribute (or write-
           off) £250m.
       •   Under the terms of the renegotiated contract, the Design and Development
           phase of the programme is now separated from the Production phase. Design
           and Development will be completed under new Target Cost Incentive Fee
           (TCIF) arrangements.
       •   BAE Systems and the MoD have established new Target Costs and Fee
           levels for the programme.
       •   Including government supplied equipment (e.g. sonars and the Tomahawk
           control system), the out-turn cost of the first three Astutes now seems set to
           reach £4 billion.

       •   The Prime Contractor (BAE Systems Electronics Ltd – Astute Class Project)
           is responsible for the design and build of the vessels and provision of all
           equipment,      including   the   combat     system,   demonstrating   functional
           performance, and supporting the submarine during an initial period of in-
           service life.
       •   The boats are actually being built at the BAE Systems Marine (VSEL)
           shipyard in Barrow-in-Furness. First steel for HMS Astute was cut in
           November 1999 but the keel (actually the first hull section) was not formally
           laid down until 31 January 2001.
       •   Fabrication of the second submarine HMS Ambush started in August 2001,
           although progress was slow because of the design problems being
           experienced Astute, and her ceremonial lay down had still not been
           announced before the suspension of all fabrication work in February
           2003. Work on the third boat, Artful, was due to commence in 2003, but will
           now be delayed until 2006.
       •   It had been anticipated that an order for a further three Astute class
           submarines would be placed in late 2002 at an estimated cost of £1.7bn, but

     Major Projects Report 2001, November 2001.

                                             24 of 35
         this order has now been delayed indefinitely13 and their cost will be re-
     •   Programme Problems: BAE Systems was making slower progress in the
         detailed design and build up of production than had been anticipated, and the
         approved ISD of June 2005 could not be achieved.
     •   November 2002: The Astute programme was in severe difficulties and the
         MoD informed BAE Systems the Second Buy order would not be placed until
         project problems had been rectified to a satisfactory level.
     •   On 19 February 2003 the MoD and BAE Systems announced that all
         construction has been halted while design issues are resolved, and the first
         submarine will not enter service until at least 2008 (three years later than
         planned). The cost of the Astute submarine programme - already running at
         over £2.5bn - was also to rise by almost £700m.

     •   In March 2003 it was announced that the General Dynamics Electric Boat
         Division would provide design assistance and also reinforce BAE's Astute
         team. An agreement finalised in April 2003 will see up to 10 designers and
         engineers assigned to BAE Systems' Barrow-in-Furness shipyard for two
         years. A number of American engineers and designers from EB will also be
         familiarised on BAE Systems' computer-aided design system and produce
         initial output drawings. When they return to Groton USA, these employees
         will assist in familiarizing the main body of EB designers with BAE Systems'
         design system and methods.
     •   On 23 October 2003 General Dynamics EB announced that it had received a
         $23 million contract modification which brings the total value of the work to
         $52.7 million. Under the contract, EB will provide the resources required to
         complete drawing outputs to support the production program of the Astute-
         class submarines. 90% of the work will be performed in Groton, USA; the
         remainder will be done in Barrow-in-Furness.

     •   A 30-year contract, worth about £300 million, to train crewmen for the Astute
         class submarines was awarded by the MoD in September 2001 to the UK-
         based FAST consortium. The FAST consortium is composed of AMS (a joint

  Probably until 2010,, a date viable if the decision is made to run the RN's SSN force down to 7 boats
as proposed in the MoD's draft Equipment Plan 2003. Otherwise Main Gate seems likely in 2005.

                                               25 of 35
       venture company owned by BAE Systems and Finmeccanica Spa of Italy),
       CAE Inc of Canada and Flagship (a joint venture company owned by BAE
       Systems, Vosper Thornycroft and Johnson Controls of the US).
   •   In light of the slippage, a submission for re-approval of ACTS via a Review
       Note was expected in early 2003. Should further Astute class boats be
       ordered, the ACTS contract could be extended to run for 40 years.

Subcontracts and subcontract opportunities
   •   BAE has personnel co-located at sub-contractor locations, or vice versa.
   •   It is suggested that ALSTOM can provide a solution, from initial design to
       installation, commissioning and through life support, for electrical propulsion.
   •   AMS, an equal shares joint venture between BAE Systems and Finmeccanica
       of Italy, is expected to contribute towards the Astute Combat Management
       and Countermeasure systems.
   •   BAE Systems Combat and Radar Systems, under instructions from the Astute
       Prime   Contract    Office,   is   currently   developing   the   Astute Combat
       Management System (ACMS).
   •   BAE Systems Customer Solutions & Support (CS&S) provides tailored
       through-life support and service solutions, and is expected to contribute
       towards Navigation systems.
   •   CAE has been contracted to supply Controls & Instrumentation (C&I)
       Integration for the Astute Class submarine.
   •   Darchem is active in the development of Darmet all metallic insulation
       systems which are currently fitted to primary and secondary systems on
       Swiftsure, Trafalgar, and Vanguard class submarines and is being
       manufactured for Astute class also.
   •   EADS(UK) is supplying the complete External Communications System
       (ECS) for the Astute class submarines to BAE Systems.
   •   HM Naval Base Clyde will be the location of in-service support.
   •   Rolls-Royce is supplying the nuclear steam raising plant which powers the
       main propulsion system and the associated propulsors for all three Astute
       Class submarines.
   •   Rolls-Royce is also designing the software for the central control consul and
       start-up panel.

                                          26 of 35
   •   Strachan & Henshaw are providing the Weapon Handling & Launch System
       and SSE systems for the first three Astute Class submarines, and the weapon
       integration systems for torpedoes.
   •   The Astute Class radar band above water sensing requirement is satisfied by
       the Thales Sensors RESM Outfit UAP(4).
   •   Thales Optronics designs and manufactures electro-optical (EO) systems and
       equipment, modules and components, and will provide non-hull penetrating
       masts for the Astute class.
   •   Thales Underwater Systems has been selected to provide the sonar system –
       Sonar 2076.
   •   Ultra Electronics will provide Astute submarines with weapons interfaces,
       static converters and degaussing.

Beedall, Richard provides an in depth overview of all available sources in, Astute
                Class. Parts of his article are reproduced here.

Maritime Underwater Future Capability (MUFC)

Formerly the Future Attack Submarine (FASM)
   •   FASM, intended to replace the last four or five of the seven Trafalgar Class
       nuclear powered submarines, was renamed the MUFC. MUFC is designed to
       define and produce the principle capabilities to replace Astute.
   •   The original FASM programme reached the Concept Phase, with Initial Gate
       and entry in to the Assessment Phase scheduled for December 2001. This
       date is now unachievable for MUFC and is being reviewed. The In Service
       Date for FASM was the middle of the second decade of this century. The ISD
       for MUFC is being reviewed.
   •   MUFC is examining a range of remote-controlled underwater robots. Manned
       submarines are now expected to be used for command and transport roles
       rather than fighting sea battles. In place of traditional submarines, the RN is
       considering a range of nautical weaponry including robot drones that detect

                                       27 of 35
       and destroy mines; unmanned intelligence-gathering underwater vehicles;
       and remote-controlled underwater missile and torpedo platforms.
   •   Unmanned Underwater Vehicles (UUVs) are not expected to start entering
       service within the next 10 to 15 years, and it may be as long as 30 years
       before a full capability can be provided. It is unclear how much of the FASM
       work will be re-used by the MUFC project, and whether MUFC will incorporate
       Manned Underwater Vehicles (MUV's) as well as UUV's.

BAE Systems Concept Submarine
   •   BAE Systems has investigated the concepts of Directional Waterjet
       Propulsion Pods (ultra-quiet directable podded water jet propulsion units that
       rotate at the root to provide vectored directional thrust and unparalled
       high/low speed manoeuvrability in conjunction with single lower rudder for
       stability and steering) and Sensor Arrays (ultra-sophisticated all-round sonar
       coverage achieved through platypus bow sonar and after fin arrays).

Fast Lift Concept, DEC DSR
   •   The Director Equipment Capability Deploy, Sustain, Recover is interested in
       Fast lift to either replace or complement present RoRo and strategic sea lift
   •   At this stage the DEC is watching, primarily in the commercial sector, for a
       solution to the concept in conjunction with other DECs. If any other DECs
       commission a research vessel, DEC DSR would analyse the findings.
   •   Presently available Fast ships in the commercial sector do not meet the size
       and magnitude requirements for DEC DSR (i.e. DEC DSR require a 10,000
       tonne vessel, and all that are available are 1,000 tonne vessels), or shape
       requirements for speed.
   •   The possibility of enlarging commercial Fast vessels is not entirely viable; as
       their size increases so will their fuel consumption, and this will reduce
       container capacity.
   •   Fast lift is very much a concept at this stage. There is no official funded line
       and the DEC seems to be watching for any commercial and/or technological
       advancements that may meet future requirements.

                                      28 of 35
Interview with Wing Commander John Jenkins, DEC DSR, 04 December 2003.

NATO Submarine Tender
   •   The NATO Submarine Rescue System (NSRS) is a multi-national project
       managed by the UK DPA on behalf of France, Norway and the UK.
   •   A number of studies have been conducted over the last few years, with the
       participants recently reaching the end of the Project Definition Phase.
       The three nations have now moved into the Design and Manufacture Phase.
   •   NSRS will be a single system jointly operated and funded by the Participant
       Nations. A Memorandum of Understanding was signed by the three
       Nations on 6 June 2003, covering general principles for the 29-year
       programme and specific arrangements for the D&M Phase.
   •   Invitations to Tender for the D&M Phase Contract was issued in June 2003.
   •   The likely future timescale is as follows: Award D&M Contract - March 2004;
       Achieve Initial Operating Capability - December 2006; Achieve Full Operating
       Capability - March 2007. The expected in-service life is 25 years.

   •   NSRS is being procured under a 'Government Owned, Contractor Operated'
   •   The D&M Phase Contract will include an in-service period, giving an initial
       contracting period of 8-10 years.
   •   Following a pre-qualification process, seven potential prime contractors have
       been invited to tender.
   •   The D&M Phase of the NSRS project is being conducted as a partnership
       between France, Norway and the UK, with the UK acting as contracting
       authority and host nation for project management. This arrangement will be
       reviewed for future phases.
   •   Turkey, a participant during the Project Definition Phase, will remain an
       Observer   Nation    whilst   they   consider   future   financial   involvement.
       Opportunities exist for other nations to join the project through signature of
       further phase MoUs, and participation in the In-Service operation of the
       rescue system.


                                       29 of 35
Surface Warship Refits

Warship Support Modernisation Initiative14
     •   Under the Warship Support Modernisation Initiative (WSMI), Devonport
         Management Ltd will provide engineering and other support at Devonport
         naval base, Fleet Support Ltd at Portsmouth, and Babcock Engineering
         Services (a subsidiary of Rosyth's owners) at the Clyde bases (Faslane and
         Coulport). Naval base commanders will continue to determine what work is
         required, and the execution of that work will be delivered by the commercial
         partners. The three contracts came into effect in September 2002.
     •   The MoD expect savings from the WSMI of £327 million over 5 years, and
         £48 million a year thereafter. These would be achieved by rationalising
         organisations at each site from two to just one, the firms’ ability to attract
         third-party work, competition for refits reducing their cost to the MoD,
         rationalising engineering maintenance and management structures, and the
         wider sharing of overheads for the estates and utilities.
     •   The savings in the first 5 years are to be evenly divided between the dockyard
         programme and the naval bases, but the longer term recurring savings are to
         be entirely attributed to the naval bases. The initiative is likely to lead to 1,000
         posts being lost over a five year period, which translates into 750 staff
         because some posts are vacant. The largest element of the naval base
         savings is concerned with the proposed partnering on the Clyde.
     •   Introducing the WSMI, by 2005-06, increases the estimated percentage of
         refit work exposed to competition by a half — 93% rather than 61%.

                           Extent of warship refit competition
                                    2002-03      2003-04       2004-05      2005-06
           Assuming          the 53%             51%           69%          93%
           WSMI proceeded:
           “ WSMI did not 52%                    44%           41%          61%

  Defence Select Committee Fourth Report, 3 July 2002, House of Commons. Parts of the report are
reproduced here.

                                            30 of 35
             A tapering-off of allocated warship maintenance programmes
                                   Prior to the Initiative            Under the WSMI
Devonport                               •   Allocated     upkeep        •    Last        allocated
                                            programme to end                 upkeep in 2002-03.
                                            in 2001-02.                 •    Docking periods to
                                        •   All docking periods              be competed after
                                            allocated.                       2002-03.

Rosyth                                  •   Major                       •    Allocated work to
                                            warship/escort                   end in 2004-05.
                                            upkeep                      •    Allocated work to
                                            programme                        end in 2004-05.
                                            allocated to end in
                                        •   Minor         warship
                                            repair        periods
                                            allocated         until

Portsmouth                              •   Docking       periods       •    Allocated work to
                                            allocated.                       end in 2004-05.
                                        •   No Repair period            •    No     repair   period
                                            work allocated.                  work allocated.

       •   There remains much uncertainty for the naval bases, dockyards and their
           workforces. The MoD considers that its recent decisions on the base-porting
           of future warships—Portsmouth for the Future Carriers and Type-45s,
           Devonport for amphibious assault vessels and the helicopter carrier, and
           Clyde for the Astute submarines—will provide a continuing need for all three
           bases. The output-focussed contracts with the new commercial managers will
           prompt efficiency initiatives, however, that might place the longer term viability
           of some dockyards in greater doubt. The MoD will need to ensure that it is
           able to safeguard essential facilities at the bases and Rosyth Dockyard. All
           major planned refit and maintenance work must be undertaken in the UK.15

     Adapted: Para 49, Defence Select Committee Fourth Report, 3 July 2002, House of Commons.

                                              31 of 35
Refits of Type 23 Frigates
   •   Plans to contract for the refit of five Type 23 frigates at Rosyth Dockyard in
       Scotland over the next four years were announced on 30 March 2001.
   •   The contract, worth around £75 million, will secure work at the yard until 2005
       and putting the five refits together in a single batch at the dockyard will allow
       significant savings to be made on the cost to the taxpayer.
   •   Babcock Rosyth Defence Ltd is expected to bid for further naval refitting work.
       In addition, the MoD is continuing discussions with BRDL, other commercial
       dockyard owners at Devonport and Portsmouth, and the Trade Unions over
       wider proposals to tackle the problem of over capacity in warship
       maintenance and repair. These proposals include possible partnership
       arrangements between BRDL and Clyde Naval Base.

Refits of Type 42 Destroyers
   •   An MoD maintenance programme is underway in Portsmouth.
   •   The Type-42 destroyers are to receive docking period work under a £35
       million contract with Fleet Support Ltd. Docking periods, when essential
       maintenance/updates are carried out on ships, are conducted every four
   •   HMS Southampton is the second of three Type-42’s destroyers to receive
       docking period work under – the first being HMS Exeter and the third York.
   •   HMS Southampton entered Portsmouth dockyard at the beginning of July
       2003. Work carried out on the vessel will also include the fitting of a new
       propulsion shaft and additions and alterations to improve living conditions for
       the ships staff.
   •   Occurring between ship refits, docking periods are an important part of the
       through-life support that the WSA offer all Fleet vessels.
   •   Fleet Support Limited (FSL) is aiming to use the extensive repair of the Type
       42 destroyer HMS Nottingham as a passport to bringing major warship refits
       back to Portsmouth Naval Base.

Other Dockyard Partnering Arrangements
   •   The WSA’s Major Warships IPT has developed partnering arrangements with
       the Dockyard contractors at Rosyth and Devonport for the refits of HMS
       Liverpool and HMS Manchester. Partnering Charters have been agreed that
       identify key shared objectives and promote co-operative behaviour.

                                       32 of 35

Ship Life Extension Programme (SLEP) for Invincible Class Carriers
   •   The current Invincible class of aircraft carriers are scheduled to leave service
       between 2010-2015. A SLEP option was originally investigated during the
       pre-feasibility work for CVF.
   •   BAe-SEMA completed a SLEP study in 1995 in the preliminary CVF feasibility
       studies which concluded that SLEP was technically risky on account of
       existing hull fatigue and the problems of inserting an additional hull section to
       increase capacity. It was found that SLEP would not provide the dramatic
       increase in air wing capacity offered by the larger new-build CVF. It was also
       concluded that such a solution was disproportionately expensive given the
       limited capability improvement conferred by the modifications over a relatively
       short additional lifespan.
   •   Despite SDR’s decision to build the new carriers, as an alternative to the CVF
       programme the MoD continues to consider the feasibility of extending the
       service life of two of the three existing CVS's by 10 years, i.e. the required
       ISD for their replacements would change from 2012 to 2022.
   •   An invitation to tender for the further special refit (FSR) study contract was
       issued in early 1999 and the work was probably completed by year's
       end. Although its conclusions were never published, the FSR study
       apparently found that the CVS's could not be cost-effectively altered to
       operate the STOVL variant of the Joint Strike Fighter, partly because they are
       simply too small for any plane much larger than the Harrier. Adoption of the
       FSR option was thus rendered impossible.
   •   However, should there be a sustained and substantial delay to the CVF
       programme, SLEP is the likely option to be used to maintain the necessary
       aircraft carrier capability for power projection.

Submarine (Swiftsure & Trafalgar Class) Update Project
   •   The Swiftsure and Trafalgar Class (S&T) Update provides an enhancement to
       the operational effectiveness of the UK’s submarine (SSN) flotilla through a
       staged improvement to the Tactical Weapon System (TWS) and by the

                                        33 of 35
           implementation of a series of modifications to reduce further the submarine’s
           underwater acoustic signature.
       •   A staged procurement policy has enabled elements of the new TWS to be
           fitted in submarines at the earliest opportunity.
       •   Shore integration facilities have also been provided to prove the TWS
           architecture prior to installation on the submarine.
       •   An initial phase design TWS update is now at sea in a number of platforms,
           making a valuable contribution to the operational capability of the SSN flotilla.
           Work is well underway to provide the full final phase TWS enhancement
           which, building on the successes of the interim architecture, will provide an
           extremely capable Tactical Weapon system (TWS).
       •   The 12 month slippage in the Swiftsure and Trafalgar Class Submarine
           Update was caused by software engineering problems which led to the sonar
           system development programme being delayed.16
       •   Management of the update programme is being undertaken by Marconi
           Astute Class Limited (MACL) – now part of BAE Systems, the Prime
           Contractor for the Astute Class submarines. In addition to its responsibilities
           for the S&T Update, MACL is gaining experience that will ensure an optimised
           combat system for the Astute class.

Trafalgar Class Submarine Updates
       •   HMS Torbay has returned to the fleet after a £240 million upgrade, which is
           part of the Swiftsure and Trafalgar Update Final Phase (S&TFP) project to
           update three other submarines, HMS Trenchant, HMS Talent and HMS
       •   Sub contract opportunities: The upgrades include a new Command Console;
           an upgraded Submarine Command System; a new Tactical Weapons System
           Highway; an upgraded communications system, RICE10; new Propulsor and
           new Flexi couplings upgraded signature reduction measures; and the
           introduction of the fully integrated Sonar 2076 composed of a bow, flank and
           towed array sensor developed by Thales Underwater Systems Ltd.
       •   The Update Project provides the very advanced combat capabilities intended
           for the much larger Astute class.

     Major Projects Report 2001

                                            34 of 35
   •   The focus of the Astute submarine programme is at Barrow, so DML
       Plymouth has been awarded the in-service update contract. DML has
       executed the D154 submarine facilities upgrade contract in order to allow the
       future submarine support programme to be carried out at Devonport.



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                                                                       January 2004

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