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Future Aircraft Carrier (CVF)

Queen Elizabeth Class
 

Part 10

             Article Parts 

 1. Current Project Status and
     Graphics

  2. Specification

  3. The Project and its Origins

  4. Role

  5. Smart Procurement

  6. Project Schedule

  7. Procurement Process I
      (until Jan 2003)

  8. Procurement Process II  
      (until July 2007)

  9. Procurement Process III
      (latest situation)

10. Management and Industry
       Structures

11. Aviation Operations

12. STOVL or CV F-35?

13. Platform Design ...

14. ... and Redesign

15. C4ISR Facilities

16. Operational Concepts

17. Crew, Accommodation &
       Habitability

18. Propulsion and Engineering

19. Manufacture

20. Build Problems and UK
      Content

21. Basing and Support

22. Costs

23. Air Group

24. Aviation Requirements and
       Facilities

25. Catapults and Arresting Gear

26. Armament and Armour

27. Operations

28. Names

29. CVF Links



 

Management and Industry Structures

In January 2003, the makeup of team of the preferred CVF prime contractor, BAE Systems,  was:

  • BAE SYSTEMS Sea Systems Group - Ship Design and Build Strategy.

  • BAE SYSTEMS - C4ISR, Collaborative Through Life Support.

  • 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

  • Vosper Thornycroft Shipbuilding (now VT Group) - Naval Architecture, Ship Build Strategy, Human Factors, Through Life Support, Control Systems.

The "Future Aircraft Carrier Alliance" painfully put together in early 2003 consisted of:

  • BAE SYSTEMS - Preferred Prime Contractor, responsible for project management and ship build

  • Thales Naval Ltd - provision of whole ship design, "key supplier" and programme partner in association with naval architects BMT Defence Systems

  • Defence Procurement Agency - customer and risk taking partner

The associated consortium of shipyards and companies put together by BAE Systems to actually build the carriers consisted of:

  • Babcock BES

  • BAE Naval Ships

  • Swan Hunter

  • VT Group

In April 2004 the MOD deselected BAE Systems as preferred prime contractor. 


Probable Carrier Alliance governance structure as seen in 2004 (Source: VT Group, modified by Editor)

 

In February 2005 it was announced that Kellog, Brown & Root (KBR) would be appointed as "Physical Integrator" to provide specialist consultancy and project management services, and become a member of what was now being termed the Aircraft Carrier Alliance (ACA), or simply Carrier Alliance.

In March 2005 membership of the Alliance Management Board (AMB) consisted of: the MoD's CVF IPT Leader (John Coles); the managing director BAE Systems CVF (Nigel Stewart); the managing director Thales Naval Ltd (Allan Cameron); and the director KBR Maritime Operations.  The programme was overseen at a senior level by the MOD's Carrier Strike Programme Board, on which the Assistant Chief of the Naval Staff Rear (Admiral RF Cheadle) sits.  There is also a 'Senior Responsible Owner for Carrier Strike' (Rear Admiral Nigel Guild), who is currently the Controller of the Navy and is personally responsible for ensuring the Carrier Strike programme meets its objectives and delivers the projected benefits. 

In March 2005 the Aircraft Carrier Team (originally set up in February/March 2003 when the BAE and Thales CVF bid teams merged, with a few DPA staff adding flavour to the mix) consisted of over 350 people (core or seconded) working in a joint integrated team under a single management structure.  The structure and content of the team in terms of the industrial alliance participants was then as follows: BAE Systems provided around 60 to 65 core personnel, Thales UK around 40 to 45 core personnel, and KBR UK around 15 to 20 personnel.  The team was located across three sites in the Bristol area.  By that date around 40 companies had at differing times been involved in supplying personnel into the project team.  The Extended Assessment Phase completed on 31 March 2005 and the Carrier Team was rapidly run down as seconded staff were returned to their parent organisations, about 200 staff remained in May. 


Carrier Alliance governance structure in 2006 (Source: Thales Naval, modified by Editor)

 

Alliancing Principles

  • An association of partners who share risk & reward:-
    (i) Locally for their own scope; and
    (ii) Globally against whole project achievement
  • All partners are primarily incentivised at overall project performance level
  • Partners are selected during a negotiation period
  • Selection is on ‘best outfit for job’ basis
  • All ‘horse-trading’ on roles & responsibilities is complete before work starts
  • It is preferable for customer to sit within the alliance
  • Costs negotiated on an ‘open book’ basis
  • Partner’s risk is normally proportional to work scope
  • Two levels of Management:
    (i) Upper Chamber
       * Senior representatives from each corporate entity
       * Ensuring alliance is resourced & able to deliver
    (ii) Lower Chamber
        * Project director & operational management
           reports
        * Managers appointed on ‘best man for job’ basis

In December 2005, the MOD announced that VT Group and Babcock (who were both expected to play keys roles in the platform delivery) would now join the Aircraft Carrier Alliance as full members.   All six Alliance members (Babcock, BAE Systems, KBR, MOD, Thales and VT Group) members, after lengthy negotiations, signed up to a charter on alliance roles and responsibilities. BAE Systems will take responsibility for the integration of design, build, commissioning and acceptance of the ships; lead the engineering team; have responsibility for mission systems design; and design and construct the centre and aft blocks. Thales will take the role of design lead for platform, power and propulsion and take responsibility for the aviation interface. KBR will provide project management services; and Babcock and VT will have responsibility for design and build of the two forward blocks, with Babcock managing integration and assembly at Rosyth. The final Alliance Agreement will not be completed until the main investment decision is taken, this will specify the risk and reward levels attributable to each member.

It was stated that the MoD, as client, would define and implement alliance governance as well as managing the various stakeholders within the MoD and government.  An Alliance Management Board, chaired by the MoD and comprising the leaders of each alliance participant, would lead and collectively manage the project.  Simultaneously approval was given to begin detailed CVF design work, and the Aircraft Carrier Team is expected to rapidly expand in numbers - including some assigned French MOPA2 staff employed by DCN and Thales France.  

The Demonstration Phase was delivered under six works contracts – a separate works contract for each alliance partner (2 x BAE Systems (Naval Ships and Insyte), Thales, KBR, VT, Babcock) - with an over arching Demonstration Phase Alliance Agreement signed by all the parties on 13 April 2006.  The Works Contracts covered the payment arrangements and work scope, and the Alliance Agreement defined the arrangements for gainshare, management and establishing relationships/behaviours for the Demonstration Phase.  The agreement defined an incentivised scheme to give greater confidence in meeting the project's targets.  The agreement, which is legally binding, establishes the Alliance management arrangements, relationships and behaviours.  The Alliance's structure consists of a senior Alliance Board, chaired by the Chief of Defence Procurement with CEOs of the participant companies, overseeing the strategy with the project's direction the responsibility of a sub-ordinate Alliance Management Board, chaired by the MOD's team leader with representatives of each of the participant companies.  Reporting to the AMB is an Alliance Management Team delivering the outputs, drawing on staff from all the participant companies, and headed by a Chief Executive, an MOD civil servant seconded from Industry.

ACA Management Structure (2006)

 

There were reports in February 2007 that KBR would loose its role as CVF programme manager and member of the Aircraft Carrier Alliance when its current £15 million Demonstration Phase contract expired in June 2007.  There was a perception that since the companies appointment in February 2005 it has failed to perform - it's team allegedly hasn't demonstrated the expected skills and expertise in managing very large physical integration projects.   The role of KBR would be complicated by the expected merger of BAE, VT and possibly Babcock shipbuilding operations as ShipCo - leading to the set-up of internal management and governance structures for CVF that by-pass KBR.  Also, the role of KBR during the Manufacture Phase would be complicated by the expected merger of BAE, VT and possibly Babcock shipbuilding operations as ShipCo - leading to the set-up of internal management and governance structures for CVF that by-pass KBR.

On 27 January 2006 Peter McIntosh, Managing Director of VT Shipbuilding, was appointed as Chief Executive of the Alliance Management Team, responsible to the AMB.  He was seconded to the MOD for the period of his appointment (initially 12 months, ending January 2007 but this was mutually agreed to be extended up to the end of January 2008) and is required to observe the general conditions of conduct applicable to Civil Servants. He is no longer a member of the VT Board and his shares are held in trust. He will require MOD's consent to take up any subsequent appointment, other than with his previous employer, within two years of the end of the secondment. Rear Admiral RT (Bob) Love, previously, (as commodore) the Deputy Team Leader, succeeded John Coles as Team Leader on 16 March 2007.

On 25 July 2007 the MOD announced that KBR, having completed their main contribution to the work, would not be part of the Alliance for the manufacture phase.  The BAE Systems/VT Joint Venture announced the same day will , on formation, will be a member of the Alliance Management Board for manufacture as will BAE Systems (representing Barrow and INSYTE), Babcocks, Thales and the MOD as both client and Alliance participant.

The Alliance's structure through the Demonstration phase has included a senior Alliance Board, chaired initially by the Chief of Defence Procurement but from 2 April 2007, by the Chief of Defence Materiel, with CEOs of the participant companies, overseeing the strategy. In the manufacture phase the Board will only be constituted for dispute resolution. The project's direction is the responsibility of the sub-ordinate Alliance Management Board (AMB), chaired by the MOD's DE&S Director General of Ships leader with representatives of each of the participant companies, supported by the CVF Team Leader and the Alliance Management Chief Executive. Reporting to the AMB is an Alliance Management Team delivering the outputs, drawing on staff from all the participant companies, and headed by a Chief Executive, seconded from Industry as an MOD civil servant. These arrangements will be reviewed to ensure they are appropriate as the project moves into the manufacture phase.

 

Companies involved with CVF

In December 2005 a Defence Selected Committee report revealed a list of companies which the Alliance is having discussions with as part of the Future Aircraft Carrier design evolution.  The information apparently dates to September 2005 or slightly earlier.

 

 

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 © 2004-8 Richard Beedall unless otherwise indicated.