Armoured Vehicles
Closed
What the inquiry looked at
“The recent MoD Integrated Review reconfirmed that armoured vehicles remain a major part of the Ministry of Defence’s (MOD’s) land capability, being used to provide firepower, mobility and protection for service personnel and undertake reconnaissance. The MOD is seeking to modernise and upgrade its armoured vehicles and the Ajax family of armoured reconnaissance fighting vehicles is a central component of MOD’s plans, but both the Defence Committee and PAC have expressed serious concerns about progress with the £5 billion Ajax programme. The PAC will question senior officials at MOD on their management of the Ajax programme and progress against cost, time, and performance milestones including: arrangements for managing the Ajax programme, including strategic oversight and governance; progress since 2010 on the Ajax programme; and current plans to deliver the Ajax programme, including contractual arrangements and resourcing. If you have evidence on these issues, please submit it here by Wednesday 23 March 2022.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The Ajax programme, which began in 2010, is intended to transform the Army’s surveillance and reconnaissance capability. However, it has gone badly wrong, with no deployable vehicle delivered to date let alone providing Initial Operating Capability or Full Operating Capability dates. The Department has a £5.5 billion firm-price contract with General Dynamics Land Systems UK for the design, manufacture and initial in-service support of 589 Ajax armoured vehicles. The Department initially expected to bring Ajax into service in 2017 but subsequently missed a revised target of June 2021.
By December 2021, the Department had paid General Dynamics £3.2 billion but received only 26 Ajax vehicles, none of which it can use. The programme remains in turmoil because the Department still does not know whether the noise and vibration problems—which since July 2020 it has known may have injured soldiers—are fixable.
It does not expect to determine this until late 2022. The Department is not willing to set a new target for initial operating capability before the noise and vibration problems are resolved and it does not know when it will be able to introduce the full capability into service. There remains considerable uncertainty over how to resolve these safety issues and the programme is slipping further behind schedule as the Department and General Dynamics seek to agree a way forward. The slow progress and continued delays create significant risks to value for money, put at risk the Army’s plans for transformation and mean soldiers will have to use existing outdated vehicles for longer.
The Department’s management of the programme was flawed from the outset as the programme was over-specified and the Department and General Dynamics did not understand the scale of the technical challenge. We have seen similar failings again and again in the Department’s management of its equipment programmes. The Ajax programme also raises serious concerns about the Department’s processes and culture for testing whether new equipment is safe to use. The Department needs to learn the lessons from the Ajax programme to ensure the litany of failures is never repeated and that our service personnel receive the equipment they need for operations and the nation’s defence. As a matter of the upmost urgency, the Department must establish whether noise and vibration issues can be addressed by modifications or whether they require a fundamental redesign of the vehicle. If the latter, the Department must decide whether the right course is to proceed with General Dynamics or if it should opt for an alternative. We expect an update on this when we next take evidence and a definitive decision, either one way or the other, by December 2022. After twelve years, enough is enough.
As this Committee highlighted in its recent report on the MoD Equipment Plan 2021– 31, the recent Russian invasion of Ukraine only reinforces the urgent need for the Department to reform, prioritise and effectively manage its expenditure to ensure the Armed Forces can secure all the equipment that they need in the quickest possible time.
What the government said
The government responded on 2 September 2022. The deadline was 3 August 2022.
The government states that it agrees with each of the Committee's recommendations on the Ajax programme, with target implementation dates of December 2022 for most and Spring 2023 for the lessons learned response.
- On alternative options and delays, it agrees with the recommendation and "expects to decide the way ahead on the programme by the end of 2022".
- On lessons learned, it agrees to write to the Committee once the Ajax Lessons Learned Review reports, with a target of Spring 2023. Recommendations "will be considered" alongside other improvements underway.
- On noise and vibration, it agrees and says it is "focussed on identifying the root causes". It will update the Committee at the next Ajax evidence session.
- On the contract, it agrees with the recommendation and says the £5.5 billion firm price contract has "a number of mechanisms to incentivise contractor performance". It continues to protect its rights under the contract.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 26 January 2022 to its close on 2 September 2022. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 30 Mar 2022
- Report 3 Jun 2022
- Government response 2 Sep 2022
What it recommended 5 recommendations · 23 conclusions
2The Department has once again made fundamental mistakes in its planning and management of a...
3The failure to escalate and address noise and vibration issues in a timely manner shows...
4Nearly two years after identifying injuries to soldiers, the Department still does not know how...
5We are doubtful that the Department can recover the programme within existing costs and commercial...
6The Department’s plans for using Ajax are at risk because of uncertainty about what constitutes...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
7At the same time, the Army is undergoing a period of significant transformation, during which...
8In the meantime, the Army was bullish about managing the implications of delays to introducing...
9Ajax’s design was based on a pre-existing vehicle, but the Department stipulated 1,200 capability requirements...
10The Department told us it had reviewed its approach so that it no longer fell...
11The problems on the Ajax programme were exacerbated by inadequate governance and programme management failures.
12The Department admitted that the programme’s reset in 2018 had been disappointing, and it recognised...
13The Department explained that for complex, technologically advanced programmes, it was usual to have a...
14In 2021, the Department acknowledged publicly concerns about excessive levels of noise and vibration on...
15In June 2021 the Department commissioned David King, its Director Health, Safety and Environmental Protection,...
16The Army told us it now placed greater emphasis on safety and looking after its...
17The Department said that Ajax’s safety problems had highlighted broader issues around noise-induced hearing loss,...
18Under the terms of the contract, General Dynamics is responsible for ensuring that Ajax vehicles...
19The Department told us that its contract with General Dynamics was to produce vehicles at...
20General Dynamics has proposed modifications to vehicles that seek to reduce the impact of noise...
21The Department accepted that it cannot be certain the programme will not encounter further technical...
22The programme remains under significant pressure.
23The Department said it intended to continue holding General Dynamics to the current firm-priced contract...
24The Department told us that it had consulted the Infrastructure and Projects Authority and HM...
25In 2010, when the Department let the design contract, its planning assumption was that Ajax...
26The Department told us that it faced choices about the level of capability at initial...
27Delivering the full Ajax capability depends on the Department delivering supporting programmes, including new communication...
28The Department told us it is seeking to design its new armoured vehicles, including Boxer...
Evidence
Oral evidence sessions 1
- 30 Mar 2022Armoured Vehicles4 witnesses, listed belowparliament.uk ↗
Who gave evidence 4 witnesses
- Andrew ForzaniDirector General of Commercial, Ministry of Defence
- David MarshChair, The St Martin’s Group
- David WilliamsJournalist, Daily Mail
- Lt General Christopher Tickell CBEDeputy Chief of the General Staff and Portfolio Director General for Ajax, Ministry of Defence