Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The Department’s failure to ensure the timely delivery of the Crowsnest radar system leaves the...
Conclusion
The Department’s failure to ensure the timely delivery of the Crowsnest radar system leaves the carriers with less protection than planned in its early years. The Department has regarded the Crowsnest project—which will provide a new airborne radar system to protect Carrier Strike—as a very high-risk project from the start. There were problems with it between 2016 and 2018, including slippage against milestones. Then, in January 2019, the Department realised that Crowsnest’s initial contracted capability would not be delivered until September 2021, 18 months later than planned. It has told us that the problems were because the sub-contractor did not understand the technical risks and had been overly optimistic when Delivering carrier strike 7 reporting progress. The Department assures us that there will be a “credible baseline capability” when Carrier Strike deploys in 2021 and it will be able to respond to potential threats. Although it plans to improve incrementally the radar capability by 2023, it could not assure us that it would achieve this. Recommendation: The Department should write to the Committee to advise how it has addressed the challenge of not initially having a fully operational Crowsnest system, and on the timetable for enhancements. More broadly, it should advise the Committee how it has improved the oversight of sub-contractors in the light of this case.
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target Implementation date: February 2021 5.2 Whilst the department will not have the full Crowsnest capability when Carrier Strike Group 21 (CSG21) deploys, it will have a credible baseline capability to provide surveillance and Force Protection of the task group. That initial baseline capability will be enhanced periodically (via software updates) during the deployment and beyond until Full Operating Capability (FOC) is achieved in 2023. The initial baseline capability will encompass air, littoral and maritime surveillance and interoperability with other aircraft (including F35) and ships over secure datalink. A written brief on how the department has addressed the challenge of the late delivery of Crowsnest will be provided to the Committee in February 2021. 5.3 The department has significantly increased its oversight of Crowsnest sub-contractors through more frequent and senior scrutiny of the programme. Whilst this may appear disproportionate in comparison to other programmes across Defence, in retrospect and regard of the importance of this capability, it is entirely appropriate. 5.4 More broadly, the principal responsibility for managing subcontractor performance rests with the prime contractor, with whom the department directly contracts. However, when a project is of sufficient size and complexity, the department requires the flow-down of performance reporting to sub-contractors (e.g. Tier 2 suppliers). This requires qualifying prime contractors to collect and supply sub-contractor performance data to the department. The department’s equipment procurement organisation, Defence Equipment & Support (DE&S), has introduced widespread use of Earned Value Management to better track supplier (and hence sub-contractor) variance to cost and schedule, which provides greater insight when variances arise and drives improved performance.