Report dec sp business case urd 1090 snatch 2 protected patrol vehicle executive summary

URD 1090 SNATCH 2 PROTECTED PATROL VEHICLE DEC(SP)/68/20 Dated 14 Apr 04 DECLASSIFIED Y (1) £0.590M total resource consumption (including Annually Managed Expenditure, 90% Confidence, VAT inc); and (2) £14.98M capital expenditure (90% Confidence, VAT inc). b. The minimum acceptable performance level as defined by the KUR/KSRs. The IS D90% of Feb 05 as defined by the delivery of 80 fully supportable systems (ie a Battle Group Capability) to the User. d. The Procurement and Support Strategies detailed in this Business Case. 3. The Approving Authorities are invited to note: The ISD50% of Dec 04 as defined by the delivery of 80 fully supportable systems to the User. b. The IOC quantity of 312 vehicles. This project is an operational precursor to the overarching Cat C Project DUCKBOARD. DCRS and IAB Sec have accepted this Category D Business Case as a novel procurement approach to meet an urgent requirement. A fully developed Cat C conclusion that minimum 312 PPV vehicles will continue to be required d. The 3 - point cost estimates for the project of: Project Phase Resource Cost (inc. AME) Capital Cost 50% 10% 90% 10% 50% Demonstration and MG £14.98M £0.530M £0.590M £0.480M £11.24M £12.48M Manufacture Estimate (VAT incl @ Outturn) The expected Cost of Ownership (COO) and total COO (VAT inclusive 50% confidence ex 1 Dstl/LSD/100/3/3/1/CP2 dated 31 Mar 04 (VECTOR OA Paper) 2 HONI Post Normalisation Vehicle requirement confirmed at 474. 2 of 9 UK SECRET - UK/US EYES ONLY DECLASSIFIED the system does not have an offensive capability; rather it is intended to support CT operations and training" APPROVAL DEC(SP), SUV IPTL, SUV SFO and AD Tech2 (Acq Sp) are invited to approve the SNATCH 2 Business Case: NAME APPOINTMENT SIGNATURE DEC(SP) SUV IPTL SUV SFO AD Tech2 (Acq Sp) BACKGROUND 5. Protected Mobility Requirement. SNATCH 2 is required to provide tactical mobility in order to allow Combat, Combat Support and Combat Service Support elements to carry out their roles . Such vehicles require sufficient levels of crew protection and mobility to operate in hostile environments, with specific threats identified as small arms fire, blast and fragmentation. Vehicles must be inherently reliable with high availability. Technical advances in vehicle performance must be allied with the requirement to reduce the diversity and demand of the vehicle fleet's logistic footprint. This concept has been well proven with the current SNATCH in Northern Ireland. Context. Project DUCKBOARD began life as a Cat C programme, to replace Projects SNATCH and TAVERN, which aimed to provide light protected mobility for Counter-Terrorist (CT) and Public Order (PO) operations in NI from 07/08 onwards. The demands of operations in Afghanistan and Iraq have led to the globalisation of the requirement and the need for a "modern" SNATCH equivalent, operating to a CONUSE and CONOPS derived from the NI experience, to support expeditionary operations worldwide. As explained in the DUCKBOARD Way Forward Paper® . the requirement to provide such a light protected patrol vehicle should be provided early, *D/ALS2/17/2/19 dated 9 April 02. + Vehicle mounted troop deployments. urban and rural area patrolling and administrative tasks D/DEC/SPV68/20 dated 26 Mar 04 DECLASSTHED recognition of this trend, the Defence Management Board in Feb 04 endorsed an EP04 enhancement measure' to bring forward funding for light protected vehicles into 04/05 and 05/06. Despite initial moves towards Normalisation, the requirement for protected mobility in NI, particularly in the Public Order (PO) role, remains enduring. The current SNATCH fleet is over years old and is in heavy operational use. Chassis corrosion problems" have led to a requirement to rework some 45 vehicles/year, at fourth line workshops, to support the NI liability. The Equipment Support Manager for SNATCH, SUV IPT, has stated that it will become increasingly difficult to sustain after 18 months on Op TELIC without a substantial upgrade or replacement programme '2 Some form of project to maintain the current operational PPV capability in NI, Iraq and AFG will therefore be essential in FY 04/05. 9. Medium-Term Plan. This initial tranche of PPVs will in the medium term provide the patrol and post-Normalisation Public Order support capabilities for NI; an uplift from this purchase of 312 vehicles to the desired NI scaling of 474 may be necessary. Project DUCKBOARD COEIA will establish the requirement for SNATCH 2 in the worldwide role, as well as defining EOD and wider Defence requirements. OPTIONS 10. The following options were considered in order to meet the capability requirement: a. Option A - Do Nothine Many Pes Keepin PI) roles underakon on a regular ) basis require the adoption of a 'non-aggressive' presence to promote a return to relative normality. This is difficult to achieve with legacy platforms designed for High Intensity Conflict (HIC), where their high profile makes them unsuitable. Lighter platforms may achieve the right appearance but do not provide the necessary force protection against the generic threat. The 'Do Nothing' option is discounted as it would lead to a capability gap. b. Option B - Minor Refresh. Currently available vehicles do not provide a sustainable capability (see para. 8). The SNATCH fleet has reached its planned Out of " To replace 208 SNATCH vehicles provided through UOR10383 (fitted with ACU and described as SNATCH 15). The death of / Bosnia. & The death of Op BESSEMER. ' Deaths of EOD and RMP personnel. 10 EPO4SP205A. " Recent evidence includes the SNATCH on Op TELIC whose chassis snapped in two whilst the vehicle was on suspended tow. 12 CSS4433 dated 16 Dec 03 (HQNI Chassis Corrosion Report). 4 of 9 UK SECRET - UK/US EYES ONLY DECLASSIFIED a. Option D - Procure Commercial Off the shelf (COls). A COls vehicle will meet the capacity, mobility and protection requirements. The cost of such a vehicle makes meeting the full requirement unaffordable and is not achievable in the required timescale. This option is discounted 11. Preferred Solution. It is recommended that the requirement be met by a major Refresh (Option C from Para 10), known as SNATCH 2. This recommendation is supported by OA'6 CUSTOMER FOCUS KEY USER/SYSTEM REQUIREMENTS 12. The Key User/System Requirements (KUR/KSRs) for SNATCH 2 are tabulated below: Remarks KRS Requirement (c) (b) (a) The vehicle shall provide the User with protection from Standard equivalent to current SNATCH K2 The vehicle shall provide the User with protection from Standard equivalent to current SNATCH Standard equivalent to current SNATCH The vehicle shall provide the User with protection from devices comparable to DEF STAN 23-6 The vehicle should provide Medium Mobility Commander and Driver will operate from the The vehiclé must be able to accommodate six personnel front of the vehicle. Weight of each crew member including equipment. personal weapon and ammunition is 100 kgs Based on L K6 The vehicle must be capable of being fitted with all current and future ECM equipment A radio installation comprising one of the K7 The vehicle must be capable of being fitted with all current and future communications following: BOWMAN (Clip In due to weight and limitations), COUGAR, J. PMR minimum. Still air temperature. Climate control will be The User shall be able to operate the System in K8 required to meet H&S requirements. Based temperature range classified as Al to C2. on experience leading to UOR 10383 Minimum C130 and C17 K9 The vehicle must be strategically deployable using In- 3 OSD 04/05 "Qinetiq/FST/TR023132 dated 10 Oct 02 (Project DUCKBOARD - Land Rover TUM (VPK) refurbishment and uparmour study. is proof against 18 Dstl/LSD/100/3/3/F/CP2 dated 31 Mar 04 (VECTOR OA Paper) confirms cost for Base Overhaul (Do minimum) as €64M compared to £57M for Major Refresh (SNATCH 2). DECLASSIFIED PROGRAMME DATES 14. In-Service Dates. ISD50% will be Dec 04. The ISD is defined by the delivery of 80 fully supportable Systems to the TELIC User. 15. Key Milestones. Key programme milestones are annotated below and have been agreed between the Equipment Capability Customer and DPA. The dates provide the ideal time profile. All dates are flexible with the exception of the ISD. SER MILESTONE DATE (Achieved By) (a) (a) (a) 1. Mar 04 URD/SRD Endorsed 2. BC Endorsed Apr 04 3. ITT Issued Арг 04 4 Tender Returns Jun 04 5. Down selection of Chosen Contractor Jul 04 Contract Let Aug 04 7. System Acceptance Sep 04 8. Nov 04 Logistic Support Date (LSD) 9. Dec 04 In Service Date (ISD 50%) 16. Life Expectancy. SNATCH 2 is to have an operational service life of a minimum of 10 years. SUPPLIER FOCUS PROCUREMENT STRATEGY - SNATCH 2 OPTIONS 17. Option 1 - Lease/Hire. At present, there is no MOTS/COTS vehicle that would permit the possibility of leasing. PFl is not considered appropriate as the requirement is for a militarised asset which can be used as required by the MOD in a CT role, rather than a service that is capable of definition in output terms. This option is not considered further. 18. Option 2 - Single Source/Non-competitive. There is sufficient capacity in the commercial market to conduct a limited competition to obtain value for money. There is therefore no need to pursue a single source route. Option 3 - Multiple Source/Competitive. A limited competition against a Cardinal Point Specification detailing the main requirements will be produced. A Tender will be issued to ABRO. 6 of 9 UK SECRET - UK/US EYES ONLY DECLASSIFIED SUPPORT STRATEGY General. The Support Strategy has been agreed between Tech 2a DLO and SUV IPT. SNATCH 2 will be subject to an in-service military support package backed by a limited 12 month warranty appropriate to the selected vehicle. A Logistic Support Committee (LSC) will be established under the chairmanship of SUV ILSM, to implement the tailored application of Def Stan 00-60 ILS. As the preferred option is to base the automotive parts of the major refresh on TUL/TUM(HS) a significant amount of the support element is already in place and will require expanding to include the SNATCH 2 fleet. 22. Through Life Management Plan (TLMP). SUV IPT will manage the project throughout its life up to and inclusive of Disposal. A full TLMP exists both for the current platform and the preferred TUL/TUM(HS) chassis. TLMPs will be updated throughout the demonstration and manufacture phases. 23. Scheduled Maintenance. The operator will carry out Level 1 to Level 4 maintenance (to include routine servicing). 24. Warranty. A warranty of at least 12 months is required from date of equipment issue for all components of the System effected by this Business Case and its associated System modification. The terms of the warranty should allow repairs to be carried out by Service Personnel or their Agents when operational requirements dictate, with the costs being claimed back at an agreed date. Spares Support. As the preferred option is based on commonality with the TUL/TUM(HS) fleet. the majority of the spares will be provided through existing contracts. New items will be identified and scaled KEY RISKS 26. Overall the level of risk inherent in the project is low. The key risk is time, which has been mitigated by a number of measures. The assessments of risk for SNATCH 2 against the procurement parameters of performance, cost and time are as follows: a. Performance. Industry has produced Concept Demonstrators at risk to demonstrate the capability. An initial tranche of vehicles will be provided to HQNI (to replace loan vehicles). These vehicles will confirm the requirement and detailed build standard prior to full production. Full production is likely to start after the NI Marching Season (Sep 04) when NI will be able to release vehicles into the programme. This will allow a 2 month trials period. Performance risk is considered low. DECLASSIFIED Y concurrent activity with Concept Demonstrator User Trials within the tender period also mitigate the time risk. 27. Risk Management. The risk remaining in the project will be managed using a risk registe shared with the chosen contractor. FUNDING 28. Category C Business Case. This Cat D MGBC, to provide those SNATCH vehicles identified in Para 13, is supported by current OA. Fully developed justification, in the context of a Bol, will be undertaken in support of the overall Project DUCKBOARD Cat C submission in Sep 04. The urgency of the requirement has meant that the Bol will not be complete before funds must be committed to ensure that the capability remains available for operations. Work conducted at risk by manufacturers confirms that SNATCH 2 can meet the capacity, protection and mobility requirements of NI and ROW PPV. Evidence will be presented in the Cat C Business Case to demonstrate that investing in SNATCH 2 early remains the most cost effective option. COEIA. The Cat C IG BC will be based upon a COEIA document which will demonstrate need and numbers for the continuing requirement in NI, the ROW requirement and the EOD requirement. It is expected that this BC will make the case for an improved level of mobility and an increase in protection for subsequent production 30. EPO4 Phase 3 Baseline Provision. Funding will be found from the DUCKBOARD line. The following profile was endorsed during EP04, demonstrating that the project is affordable: 05/06 06/07 07/08 04/05 11/12 10/11 09/10 08/09 Total 12/13 £(M) £(M) £(M) €(M) £(M) £(M) €(M) £(M) £(M) 0.230 RDEL 0.000 0.000 0.000 0.000 0.000 0.000 0.300 0.000 0.530 Requirement CDEL 0.000 6.810 5.670 0.000 0.000 0.000 0.000 0.000 0.000 Requirement 0.230 R-DEL 0.990 0.310 0.560 0.000 4.947 1.170 0.570 0.000 1.140 EP 04 Baseline C-DEL 9.230 6.810 26.880 0.000 0.000 5.440 0.000 4.15 7.410 EP 04 Baseline 31. Support Funding. The endorsed STP 04 funding line for SNATCH is shown below. SUV IPT have confirmed that, subject to lessons learnt on deployed operations which may lead to minor amendments, there is sufficient funding to support the three SNATCH variants. 8 of 9 UK SECRET - UK/US EYES ONLY DECLASSIFIED TVOUTu mnmted press feredse ve avoroomlaie DECLASSIFIED LY DECLASSIFIED