NAO 8th January report on the incompetence of the MOD project management of the Dreadnought nuclear infrastructure resulting in overspend of £1.35 billion over budget and delays of between 1.7 to 6.3 years. NAO suggesting MoD maybe correcting their ways, but why did they not from start of project?
A. MENSA: a new nuclear warhead assembly and disassembly facility, valued at £1.8 billion, at the Atomic Weapons Establishment (AWE)-operated site in Burghfield (Reading), 146% over budget
B. Core production capability (CPC) facilities: upgraded facilities, costing at least £474 million, at the Rolls Royce-operated site in Raynesway (Derby) to produce the latest nuclear reactor core designs, 45% over budget.
C. Primary build facility: new facilities at the BAE Systems-operated dockyard in Barrow-in-Furness (Cumbria), costing £240 million to upgrade aging facilities and support improved submarine construction techniques, 116% over budget.
It seems MoD have never seem to learnt from their past failures, #1 golden rule is that the design must be 100% complete before you start build, not 95% and all kit available off the shelf, so NO new unproven tech. NAO report "inappropriate" contracts with external contractors and beginning building work on facilities before the designs were "sufficiently mature" has added £647 million to costs" (eg it started building the new CPC facilities without a clear specification of the core design and a full understanding of how the facility would be used. The initial facility subsequently turned out to be too small, contributing to the £146 million total project cost increase), also highlighted a lack of technical skills within the MOD. The way that the MoD set up the contracts also means that it, and not its contractors, must foot the bill for these cost increases as it did not share out the financial risks.
No wonder Osbourne earmarked an additional £10bn contingency fund in addition to the £31 Billion for the capital costs of Successor/Dreadnought.https://www.nao.org.uk/wp-content/uploa ... -sites.pdf