Recommendations & Conclusions
7 items
3
Recommendation
Seventh Report - Armoured Vehicles: the…
Accepted
The failure to escalate and address noise and vibration issues in a timely manner shows that the Department must simplify its over-complex safety processes and change behaviours. The Department acknowledges that it has injured some soldiers, which it rightly describes as “unforgivable”. It was slow to escalate concerns about noise …
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The failure to escalate and address noise and vibration issues in a timely manner shows that the Department must simplify its over-complex safety processes and change behaviours. The Department acknowledges that it has injured some soldiers, which it rightly describes as “unforgivable”. It was slow to escalate concerns about noise and vibration because its processes were over-complicated, and parts of the Department lacked authority to ensure safety issues were addressed before trials began. The Army says it now places greater emphasis on safety and looking after its personnel, but acknowledges there is still more to do. The Department has started to implement the recommendations in David King’s noise and vibration report and introduced a new web-based application, which has led to a 40% increase in soldiers reporting incidents since January 2022. However, it needs to ensure the flow of information from junior ranks to senior officers will be thorough and transparent. Ajax’s safety problems have led the Department to investigate broader issues around noise-induced hearing loss, which results in the largest number of claims in the armed forces compensation scheme. Recommendation: The Department should set out the changes to its safety processes that it is making in response to the King Report and how it is monitoring the effectiveness of these initiatives. This should include the steps it is taking to improve openness and communication, including the use of the new web-based application. The Department should provide us with an update on progress when we next take evidence.
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Government response AI summary
The department has accepted all the recommendations in the King Report relating to safety and armoured vehicle procurement.
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HM Treasury
5
Recommendation
Seventh Report - Armoured Vehicles: the…
Accepted
We are doubtful that the Department can recover the programme within existing costs and commercial arrangements. The programme remains under significant pressure. It is more than a year behind even the revised schedule, trials involving Army crews have been suspended and noise and vibration issues remain unresolved. Despite these problems, …
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We are doubtful that the Department can recover the programme within existing costs and commercial arrangements. The programme remains under significant pressure. It is more than a year behind even the revised schedule, trials involving Army crews have been suspended and noise and vibration issues remain unresolved. Despite these problems, the Department intends to continue holding General Dynamics to the current firm-priced contract for delivery of 589 vehicles. It claims that the relationship with General Dynamics is good and that both parties are working collaboratively. However, because of programme delays and missed milestones, the Department estimates that it owes General Dynamics £750 million for completed work, but has not paid anything since December 2020, and the parties remain in dispute. It is important that the Department uses appropriate commercial arrangements to incentivise delivery of the required capability, and it is seeking to resolve the technical issues and recover the programme through existing commercial terms. It says that the next step is to assess and seek internal approval for any changes to the schedule and definitions of capability, and agree any revisions to programme milestones with General Dynamics. However, the Department will not complete this process until it has determined how to resolve the noise and vibration issues, and so cannot say when it will decide on the programme’s future. Recommendation: Whether or not the Department concludes that it should continue with the current Ajax contract, it must review its commercial arrangements to ensure these are appropriate to incentivise its prime contractor to deliver the programme and agree a recovery plan.
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Government response AI summary
The government claims the robust firm price contract of £5.5 billion protects the taxpayer and has mechanisms to incentivise contractor performance.
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HM Treasury
7
Conclusion
Seventh Report - Armoured Vehicles: the…
Accepted
At the same time, the Army is undergoing a period of significant transformation, during which it will adjust its size, shape, and capabilities. It aims to have implemented the full changes, as outlined in the Integrated Review, by 2030. The Army told us it was “cautiously optimistic” that the full …
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At the same time, the Army is undergoing a period of significant transformation, during which it will adjust its size, shape, and capabilities. It aims to have implemented the full changes, as outlined in the Integrated Review, by 2030. The Army told us it was “cautiously optimistic” that the full Ajax capability will have entered service by then.13 However, any further delays to the Ajax programme would increase the risks of not achieving this aim.14
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Government response AI summary
The government's commitment to NATO will continue to be met through flexing the range of Defence and Army capabilities, and the department will continue to monitor the position as part of its regular reviews of capabilities to meet future threats.
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HM Treasury
8
Conclusion
Seventh Report - Armoured Vehicles: the…
Accepted
In the meantime, the Army was bullish about managing the implications of delays to introducing Ajax and its ability to meet its NATO commitments.15 However, it has had to plan a series of operational compromises to achieve this, such as continuing to use Challenger 2 tanks and ageing Warrior armoured …
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In the meantime, the Army was bullish about managing the implications of delays to introducing Ajax and its ability to meet its NATO commitments.15 However, it has had to plan a series of operational compromises to achieve this, such as continuing to use Challenger 2 tanks and ageing Warrior armoured infantry vehicles, which the Department plans to withdraw from service shortly. The Army also acknowledged it would need careful planning to maintain the right number of frontline Challenger tanks because it must take Challenger 2 out of the line to upgrade them to Challenger 3.16 Furthermore, keeping old capabilities in service adds to wider affordability pressures, which the Army will need to manage within its equipment programme.17 Planning and programme management shortcomings
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Government response AI summary
The government's commitment to NATO will continue to be met through flexing the range of Defence and Army capabilities, and the department will continue to monitor the position as part of its regular reviews of capabilities to meet future threats.
Read full response →
HM Treasury
14
Conclusion
Seventh Report - Armoured Vehicles: the…
Accepted
In 2021, the Department acknowledged publicly concerns about excessive levels of noise and vibration on the Ajax vehicles. The Department admitted that because of shortcomings with its safety processes, which made it complicated to raise issues, it had injured some of its own soldiers, which it rightly described as “unforgivable”.29 …
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In 2021, the Department acknowledged publicly concerns about excessive levels of noise and vibration on the Ajax vehicles. The Department admitted that because of shortcomings with its safety processes, which made it complicated to raise issues, it had injured some of its own soldiers, which it rightly described as “unforgivable”.29 The Defence Science and Technology Laboratory (DSTL) had first warned Defence Equipment & Support (DE&S) of concerns about Ajax’s potential compliance with legislative requirements in
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Government response AI summary
The department has accepted all the recommendations in the King Report relating to safety and armoured vehicle procurement, with some already implemented and the remainder being progressed.
Read full response →
HM Treasury
15
Conclusion
Seventh Report - Armoured Vehicles: the…
Accepted
In June 2021 the Department commissioned David King, its Director Health, Safety and Environmental Protection, to assess whether correct health and safety procedures had been followed. His report, published in December 2021, concluded that collective failings enabled activity to continue when it should have been stopped or paused until stronger …
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In June 2021 the Department commissioned David King, its Director Health, Safety and Environmental Protection, to assess whether correct health and safety procedures had been followed. His report, published in December 2021, concluded that collective failings enabled activity to continue when it should have been stopped or paused until stronger controls were in place. The report made 20 recommendations to improve the Department’s approach to safety.31
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Government response AI summary
The department has accepted all the recommendations in the King Report relating to safety and armoured vehicle procurement, with some already implemented and the remainder being progressed.
Read full response →
HM Treasury
23
Conclusion
Seventh Report - Armoured Vehicles: the…
Accepted
The Department said it intended to continue holding General Dynamics to the current firm-priced contract for delivery of 589 vehicles.49 Despite remaining in contractual dispute, the Department claimed that its relationship with General Dynamics was good and that both parties were working collaboratively. It was seeking to resolve the technical …
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The Department said it intended to continue holding General Dynamics to the current firm-priced contract for delivery of 589 vehicles.49 Despite remaining in contractual dispute, the Department claimed that its relationship with General Dynamics was good and that both parties were working collaboratively. It was seeking to resolve the technical issues and recover the programme through existing commercial terms. We emphasised the importance of using appropriate commercial arrangements to incentivise delivery of the required capability.50
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Government response AI summary
The department states that it has a robust firm price contract of £5.5 billion that protects the taxpayer and includes mechanisms to incentivise contractor performance.
Read full response →
HM Treasury