The Importance of Not Being Quite So Earnest - Why the Type 26 should not be accelerated into service.
There have been several media reports featuring commentators
recently who are suggesting that construction of the Type 26 Frigate should be accelerated. The theory is that to help bolster RN capability and modernise the
fleet against growing threats, the Type 26 should enter service sooner than its
currently planned initial date of 2027.
There is no doubt that the Type 26 has had a very long
gestation period. Humphrey was first told about the project, known then as the
Future Surface Combatant in 1993. By the time HMS GLASGOW enters service, it will
be almost 35 years later. The design and build life of the class is almost as
long as the entire service life of many classes of RN warships.
But, for all the suggestions that the ship be brought forward,
there are several good reasons why this is neither feasible, nor necessarily
sensible.
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Type 26 will replace the older Type 23 - Image by Ministry of Defence; © Crown copyright |
There is a common perception that the MOD is able to flex
funding around its budget easily and pump cash into one project to bring it forward
faster. In theory it could do this – but the MOD procurement budget is not
infinite and is very carefully assigned to ensure the maximum possible value is
derived from it.
When a major programme is under way the spending pattern does
not divide into equal chunks, nor is a capability paid for in one lump sum.
Different projects will require different spending at different times depending
on the stage of construction.
In practical terms this means that saying ‘bring forward
Type 26’ doesn’t mean that the project team can instantly just throw money at
the problem. The money must be found from elsewhere in the wider budget and reallocated,
which in turn causes a wider knock on impact.
For purely hypothetical example, it could be that the Type
26 could be brought forward by 2 years if the MOD spent £100m now rather than
over the next three years. While on the surface this means the RN gains a new
ship in 2025, it also means that £100m must be stripped out of other budgeted
and funded programmes now to deliver this.
For the MOD the question is where does this money come from?
What capability should be delayed, reduced or cancelled now in order to pay for
this? There is no magic pool of cash that allows this acceleration to occur
without wider impacts. Anyone advocating a bring forward needs to clearly understand
that to do so puts a lot of other programmes at risk as a result.
The problem too is that this sort of in year reprofiling doesn’t
just have an impact in one year, but can have a major effect for years to come.
If, for example, the MOD was planning to spend £50m in the next three years on
Project X that was to enter service in five years, but the project is now
slowed down in order to find £30m of funding for Type 26, deferring its entry to
service to seven years time, suddenly the MOD has to find an extra £30m of
funding in years 5-7 that has already been allocated to other projects.
In other words, bringing something into service early can
have a major long term impact on the equipment programme as a whole as all
manner of projects are moved around. The challenge for financial planners is to
keep things affordable – which means suddenly a bring forward of Type 26 by two
years delays Project X by two years, and in turn disrupts Project Y which suddenly
has to enter service late, and Project Z is no longer affordable because the
cash programmed for it in 6 years time has been swallowed up by Project X, and
so it is cancelled.
Be very wary of demanding stuff is brought forward, for the
consequences can be long term and dire for Defence as a whole. Unless a
Spending Review finds genuinely new money, or major long term changes are made to
free up cash, then there is no such thing as a painless acceleration into service.
The wider challenge too is not just about money but the
practicalities of preparing for the arrival of a new class of vessel into
service. New ships do not get built and then pop into existence for the RN to
sail them off on operations.
Underpinning every new class of ship is a complex package of
work ranging from building up the right logistics chain of spare parts (all
properly codified and ready for use), getting all the training pipeline ready
for people to learn how to use the equipment and fuse it together to make a variety
of systems into a coherent warship, and the practicalities of turning a naval
base into a home for the new vessel.
This all takes a long time to do – for instance the RN was
planning ahead for the QUEEN ELIZABETH class entry to service years ahead of
time, with everything from Bridge and Ops Room simulators being put into use
for training people up through to dredging Portsmouth Harbour and updating
power supply and base logistics.
A warship in its base port is the sharp end of a very long
logistical spear, without which it cannot hope to operate successfully. If you
rush a warship into service without investing in all of the complex logistical
and operational support chain in place to make it ready for operations, then
its value is significantly reduced.
For the RN to accelerate the Type 26 programme means having
to take a much wider look at the state of the support system and not just the
building cycle. Are the training schools physically capable of training people on
the systems used onboard in time to get them ready to go to sea? Is there space
on the courses being run and are there sufficient staff to teach them, and are
the right number of personnel ready and able to attend these courses in the
right time frame to come together and form a Ships Company?
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HMS GLASGOW under construction |
It is not as simple as people coming together and sailing a
ship off to sea – the Type 26 is going to be one of the most complex and
advanced warships ever to be operated by the Royal Navies (Australia, Canada
and the UK), and it takes time to get the preparations right.
A lot of planning will be going into making sure everything is
ready to meet the 2027 timeline for HMS GLASGOW, not just in the construction
yard, but across the Naval Service as a whole. To bring this date forward will
have repercussions for the whole system, not just the builders.
The big challenge for the Royal Navy in all of this is sorting
not just the logistics but the people too. There are roughly 15000 people in
the ‘General Service’ (e.g not Submariner, FAA or Royal Marine) and the RN is stretched
very thinly for manpower.
Bringing a new class of ship into service requires drawing
people off all manner of roles into new tasks to help get the ship ready,
ensure the work is in place to sail the ship and then conduct trials and work
it up. This will range from the embarked ships company to naval bases, training
schools and of course the FOST organisation.
At the moment the fleet manpower planners will be working to
various assumptions and timelines that ensure people will start receiving drafts
over the next few years to work to help bring Type 26 into service as planned.
This will be a carefully designed process to minimise pressure on the existing
force and ensure a fairly seamless introduction to service.
If the decision is taken to bring the entry date forward, this
has the potential to cause all manner of wider manning problems. Suddenly people
will be needed on new courses and training years ahead of when they were
expecting to be required – and in turn this will mean gapping other roles.The RN does not have a glut of manpower sitting around to go
to sea – people who are tasked to go and work on the Seaceptor missiles will
come from the Type 23 force, which in turn means drawing on this pool of
manpower a lot earlier than planned. It can be done, but it will mean gapping
posts across the fleet to find people to do this. Is it worth the risk of putting
ships alongside as safety critical posts become gapped in order to find people
to begin the process of getting Type 26 to sea early?
The wider issue too is that to do entry to service properly,
the RN needs to focus on bringing the whole programme forward, and not just
rushing one new ship in. Suddenly you find yourself having to generate crews
for an entirely new class of ship en masse many years ahead of when you were
expecting to need them, which will have repercussions throughout the system.
Its important to understand that the manpower challenge doesn’t
begin in 2027, it begins earlier than this, so any acceleration is also much
earlier too. The RN will be faced with incredibly difficult decisions about whether
to keep ships at sea, or where to run the risk of breaking harmony time for
critical sailors (thus damaging retention rates and long term structures) in
order to get the Type 26 in to service early. Is this a price worth paying?
The final factor to consider is the sheer scale of the
challenge facing the Royal Navy right now. Over the next 8 years the Royal Navy
is delivering one of the largest and ambitious shipbuilding programmes of any
navy on the planet.
Between now and 2027 the RN will be introducing and working
up an entirely new Carrier Strike capability built around the two largest
warships ever to fly the White Ensign. This work is complex, challenging and
occupies a lot of time and peoples effort.
More widely the RN is also introducing (in no particular
order) five Batch 2 River class – a LEANDER sized OPV into service, delivering
2- 3 new Fleet Support Ships designed to support the carrier task force, five Type
31e Frigates and also continuing to design and build four new DREADNOUGHT class
SSBNs and roll out the final few ASTUTE class SSNs.
This is in addition to the wider work going on to regenerate
the wider infrastructure, ranging from moving the Submarine Service to Faslane,
reportedly developing plans to modernise the refit capabilities in Portsmouth
and investing a lot of other funding into the naval estate to ensure it remains
fit for purpose.
At the same time the RN is also going through a major cultural
change programme as it adapts to the reality of trying to deliver Carrier
Strike through the so-called Maritime Task Group (a significant doctrinal and
cultural shift in approach), generate vessels differently to support more
permanent overseas basing (such as Type 23s in the Gulf) and respond to a
plethora of global challenges from the North Atlantic to Antarctica.
This is an exceptionally ambitious programme that will deliver
enormously capable ships and submarines into RN service. But, it is one that is
placing huge pressure on the system – as noted introduction to service of new
ship types is complex and hard work. Adding Type 26 early will put enormous
pressure on a small group of people who are already hard pressed to deliver the
existing new force.
So, be wary of what you wish for. It may sound attractive to
blithely assume the RN can rush ships into service – and there is no doubt that
if the money was there then the magnificent workers in the UK shipbuilding and
defence industries could accelerate production. But this comes at a much wider
cost, and one that is not as easy to quantify.
A move to bring new capability in early may in fact do real
damage to the RN as its people struggle to prepare for and handle the enormous
influx of capability that will be entering service over the next 8-10 years. It
is easy to play ‘fantasy fleets’ on the internet and speculate about fitting Missile
X or Gun Y, but the reality of bringing ships into service is far more about
the challenge of finding the right people, ensuring they are trained and
supported and putting the logistics chain in place than it is about discussions
over whether to fit a 20mm or 30mm gun onboard.
The worst thing that could possibly happen would be for the
RN to be pressurised to accelerate entry into service now, only for the system
to be unable to properly crew and support the Type 26 when it arrives. Having the
worlds most advanced ASW frigate tied up alongside long term due to a lack of sailors
or parts because she was rushed into service early is not an optimal outcome.
Good things come to those who wait…
Morning all
ReplyDeleteI normally just read these very well worded blogs and only occasionally comment, but on this I thought I would just add my view.
For a country to succeed in the world it needs ambition, drive, enthusiasm and every now and again a small leap of faith.
What the blogger is telling us here is that we are already fully stretched and our ambition has been reached and to stretch any further would break the delicate status quo.
The RN is undergoing a well deserved equipment refresh, replacing older units with newer more efficient platforms which reduce run costs and deliver better capability. It is beginning to work out that you do not need high end combat platforms to deliver constabulary tasks (escorting Russian warships through the channel or Working in the Caribbean) and that a balanced fleet will actually increase operational availability and more importantly make crew planning a simpler affair, deploying vessels forward is another example.
Comparing an OPV to a Leander class frigate demonstrates that the cost of steel is cheap (OPV manning vs Leander is where the savings are really made) but not much else.
The author seems to want the reader to understand the struggles of budgeting and cost forecasting and how tough it would be to reprofile x to achieve y.
I would suggest that’s part of the job, to be looking forward to see how capability can be generated quicker and where money can be moved around instead of fixing budgets to objects and blindly sticking to them regardless of whether the object is still valid and required.
The MoD is an odd beast, every year asking for more money whilst not being able to spend its in year allocation, the Army headcount target and funded allocation is for 82,000 trained soldiers, we haven’t hit that so where does that money not spent on wages, pensions etc go?
The author also states that it would be a risk to bring T26 forward, my understanding is that it has been pushed back to 2027 so bringing it back to its original delivery baseline profile shouldn’t be as onerous as made out. The platform could end up going to sea obsolete due to the legacy items it will be retaining as T23’s are paid off, one would hope that this has been thought through already and the CADMID cycle for the weapon systems have been appropriately planned.
More later, train has arrived in town
Some interesting points. I would suggest if the delivery has been pushed out bringing it in again will have a substantial impact as all the other deliveries will have replanned on this assumption, leading to resources to have been committed to other projects. If someone has been told 2019 - 2020, you will be working on PoW for example, you have to either push out PoW or get another person, train them up, which could take a long time.
DeleteAt the end of the day you have to make a priority call, how important is PoW compared to an ASW vessel. I would argue that as there are already ships in the water doing the role and the ASW mission already has sub sea, surface and air assets assigned to it, with more air assets coming on stream in the form of P8, I wouldn't prioritise it.
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Ditto
ReplyDeleteIMHO the worst ever contribution from Sir Humphrey.
A decade to build an evolutionary frigate using many existing systems, which has already gone through considerable risk reduction is ridiculous. HMS Astute only took 9 years from laying down to commissioning with all the first of class issues, new reactor, regenerating skills at Barrow etc. For an intensely complicated nuclear nuclear powered vessel offering a world beating capability.
There's a confusion between long term CAPEX and annual Operating Expenditure. Every company I've seen once the CAPEX is signed off the funds belong to the Project Manager, he can spend them pretty much as quickly as he wants as long as he's hitting his deliverables.
With an extended build theres the risk of components becoming obsolete, redesign, maybe a new generation of cadcam coming in halfway through. Manning problems? The T26 have fewer crew than T23. Also the cost of running on the T23. Maintenance and spares for old ships. Fuel consumption of the Speys. Availability.
Also the logistics of the build itself. Once the ship is 2/3rds finished the mechanical trades have finished their work and need to start on the next keel, or look for other work. Drag out the build and you lose skills
HMG is accepting significantly more cost and risk over the life of the project, because they want to push the remaining 5 outside the 10 year look ahead. Its an accounting trick pure and simple.
I agree it's taking too long to produce a replacement, but that's not what's being considered here, it's whether it makes sense to row back on a decision to delay. If we had a capability gap and an imminent threat, sure spend the cash, but if it's at the cost of getting CVF into service, then no, don't bother.
DeleteMorning all
ReplyDeleteCDEL is always a problem when real accountability doesn’t exist, in companies those project managers that are responsible and those project executives who are accountable really do have to deliver, on time and within the budget boundaries laid down by a board.
Too often budgets and delivery dates are allowed to slip due to “a lack full understanding of the complexities of delivering x and over ambitious timelines to meet a wider medium term allocation” being one example.
Organisations have changing priorities all the time, they adapt and make sure that their revenue stream is protected and that their shareholders receive their dividends.
What is most frustrating about the article is the acceptance from the author that it’s too difficult to change, we on the outside don’t understand how hard things are but we are not too worry because new toys are being delivered, slowly and sometimes faulty.
Then to get accused of playing fantasy fleets, a subconscious way to belittle any objection to a point of view in my opinion.
We are not playing fantasy fleets, as taxpayers we get confused when it takes longer to deliver a platform that is reusing whole systems than it does to deliver one of the most complex pieces of machinery in the world (SSN).
Whilst it may be easy for the author to deflect the arguement by using the “fantasy fleets” strategy it may be more constructive to try and get the MoD to adapt to the new environment it finds itself, a fast moving world where the threat is ever changing, where decisions that have been years in the making have to change fast - I can assure you the soldiers, sailors, airmen and Marines will cope just fine - they are living in the real world. Hopefully the MoD will start to realise that too, change is hard - but to come up with a list of well articulated excuses and why things cannot be done shows an organisation that has settled on mederocracy at best, blind acceptance of institutional failure at worse.
(Apologies for spelling and grammar errors)
To the author
ReplyDeletehttps://www.savetheroyalnavy.org/progress-on-extending-the-life-of-the-royal-navys-type-23-frigates/
Sometimes good things come before the old things break down
Great article. What makes a world class navy is the logistics chain and planning. This is the hard part. FWIW this fact shouldn't be rocket science, anyone who has had a bathroom replace will know, that it will probably come in late and over-budget, and human kind has had hundreds of years doing that. So having a warship, with a service life of 50 years, that will have multiple refits, crew hundreds of people over its lifetime, its going to be several orders of magnitude more difficult than that.
ReplyDeleteEvening
ReplyDeleteSir H is well aware where the money come from - the taxpayer. Sir H is also aware of how poorly the Public Accounts Committee regard the MoD when it comes to spending taxpayers money.
Lord West of Spithead is stating nothing other than rumour hence the "apparently".
If the RN were to deploy their carrier groups without the number of aircraft required for it to carry out the specific role then the taxpayer would not be receiving "value for money" on the investment we have taxpayers have made.
It is an easy route out for any government department who spend money poorly to state that they haven't got enough.
The department need to stop making excuses why they spend the money awarded to them by the Treasury on behalf of the taxpayer is never enough and spend a bit more time working out how to get full value for money out of what they are awarded.
Lee H, I don't think anyone wouldn't agree that improving MoD expenditure practices is a good thing, the question is how do you make it happen?
ReplyDeleteWe have run through outsourcing to private entities for delivery, Qinectiq for R&D, Serco for auxiliary marine vessels etc, bringing in consultants, PFI for infrastructure delivery, but we still end up with massive over runs of the capital budget on a regular basis. How do we turn this around?
Hi fruit man
ReplyDeleteHow do we make it happen;
Not all outsourcing contracts have been bad, the Serco contact for auxiliary marine is a good example of something that has worked very well.
The Capita contact on the other hand is something that has not.
When something doesn't go well in the commercial sector those responsible normally get sacked, they do not go to the Defence Select Committee and tell them that its been disappointing, we are learning lessons, we are starting to see an upturn etc. etc. etc.
When you do not enforce accountability and responsibly at the highest levels how do you expect an organisation to implement them at the middle and lower levels.
When ships turn up at the Naval Base, get commissioned into service only to find that the workmanship is below standard, lessons do not get learned, contractors get do not get fined and sacked. The culture of the MoD doesn't reflect well on those it is supposed to serve, the taxpayer and the soldier, sailor, airman and marine they are there to provide for.
Excuses are too easy to come by, things are too hard, over complex, over ambitious in early estimations - all lines that the select committees have heard before and all lines the department are still quite happy to "trot" out because no one is truly accountable.
What you need in there is a very thick skinned business person, who understands the MoD is an output based organisation that needs to adapt quickly to the modern world. They need to see when industry is taking the department for a ride, budgeting huge amounts of risk so they can mitigate at later dates when profit margins need to be maintained.
Remember this a department that managed to pay 3 times the going price for OPV's that when delivered were found to be so defective that ships that had been decommissioned reactivated - if those vessels had gone to sea people could have died.
What the MoD is good at though is reorganisation, deck chair moving, generating activity to give the illusion that all is well when in reality we are living in a world where there are people queuing to join the military but because the outsourced contracting solution is so poor are not getting them into training because it is taking too long to process them in.
You only have to see where most senior officials end up when their careers have come to end to fully understand where the loyalty really lies.
So to answer your question, get someone from the outside into run the MoD, look at what the MoD is there to do, focus on that and increase the quality of the output from suppliers so we do not have senior officers going to committees giving excuses of why something hasn't gone to plan.
The obvious answer, of course, is "have more money to spend." If Parliament could be persuaded to part with an additional $67M in this year's budget rather than blow it on {insert wasteful pointless expenditure here}, then the T26 timeline could be advanced without negative impact on anything else the Navy is doing.
ReplyDeleteIt is pretty astounding that it takes a decade just to build a frigate.