Press Release - Building an Air Manoeuvre Capability: The
Introduction of the Apache Helicopter
31 October 2002
Sir John Bourn, Head of the NAO, told Parliament today that the
Ministry of Defence (the MOD) is making progress towards delivering
an Initial Operating Capability for the Apache helicopter in August
2004 but that risks remained. The MOD is buying 67 Apache
helicopters through a £3 billion prime contract with Westland
Helicopters Ltd. The Apache will provide the cornerstone of the
MOD’s Air Manoeuvre capability and will improve the ability of the
Armed Forces to conduct offensive mobile operations by delivering
more responsive, effective and survivable firepower.
The aircraft are being delivered broadly to time and cost.
Notably, the Attack Helicopter entered service in January 2001 just
a few days later than scheduled.
But risks remain in the timely development of enhancements to
the aircraft, such as the Defensive Aids Suite, and with some
aspects of the performance of key systems on the Apache, including
the Hellfire missiles, CRV7 rockets, and Longbow radar. The MOD is
confident it will be able to progress solutions to these problems
to deliver the Initial Operating Capability in 2004.
Some further risks remain which could also delay delivery of the
Apache capability. Good progress has been made in developing the
framework for how the Apache will support Land operations, but the
full risks of operating Apache at sea will not be identified until
March 2004 when sea trials are due to take place. The delivery of
training services for Apache pilots, groundcrew and maintenance
staff through a £1 billion PFI deal with Boeing and Westland has
been delayed primarily by problems with the pilot Full Mission
Simulator. As a consequence of this, the full Apache pilot
conversion programme will not now be completed until February 2007,
nearly 3 years later than expected. Some Apache aircraft will have
to be stored until trained pilots are available to fly them, at an
additional cost of £6 million, which has in part been offset by
liquidated damages paid by the contractor.
The MOD is still developing its strategy for managing the Apache
aircraft thoughout its life. For example, the Apache was initially
supported by Westland, an arrangement which runs out in October
2002. Spares inclusive repair contracts are in place for the period
up to 2005, and some of the required Spares Procurement Contracts
have now been let although some spares may have to be to sourced
from the Apache aircraft which are being stored.
Overall responsibility for delivering the Air Manoeuvre
capability, which includes successful delivery of the Apache, rests
with the Air Manoeuvre Policy Group. To support this group the
Department has two programme managers who are responsible for
delivery of all aspects of the Apache capability. These recent
developments are a significant step forward in ensuring delivery of
the Apache helicopter and Air Manoeuvre capability is undertaken in
a coherent way. The changes also mean that the management structure
for the Apache programme is now as close to meeting best practice
as the current organisation of the Department as a whole (which
includes two separate customer organisations) really allows.
Sir John’s report identifies actions that the Department should
take if it is to maximise its chance of delivering the Initial
Operating Capability. The Department needs to continue to monitor
the risks associated with the performance of key Apache systems and
exercise strong management of the equipment, training and support
programmes.
The report also identifies lessons learned from the MOD’s
experience in managing the delivery of the Apache. These lessons
include the need for careful consideration at the outset of the
effect of removing elements from a prime contractor’s
responsibility; the advantage of transferring more risk to the
contractor by relating payment to measures of actual activity
rather than a defined time period, and the importance of appointing
at an early stage a senior level individual with specific
responsibility for directing and co-ordinating programmes.
Sir John said today:
"The Apache helicopter represents a major enhancement to
Defence capability. The Department is working hard to deliver an
Initial Operating Capability by August 2004. It is a mark of
success that the aircraft are being delivered broadly to plan.
However, it is disappointing that because of problems with the
training programme, primarily delays in the availability of the
Full Mission Simulator, the helicopters are not expected to provide
a Brigade-level capability until February 2007."
Notes for Editors
- Air Manoeuvre is defined as "operations undertaken within the
land component of Manoeuvre which seek a decisive advantage over
the enemy primarily by using combined forces with rotary aircraft
supported by a range of other components."
- Our analysis is based on the six Lines of Development, a new
concept formulated by the Army to encourage a coherent approach to
the delivery of all aspects of a capability. The six Lines of
Development cover, delivery of the equipment, development of
appropriate structures and infrastructure, development of concepts
and doctrine for how the equipment will be used, delivery of the
required training, recruitment and retention of manpower, and
supporting and sustaining the new capability once the item is
introduced into service
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office employing some 750 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 62/02
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