Feature 7 | AMPHIBIOUS SHIPS
NAO report identifies shortcomings in
LSD (A) procurement
A report by the National Audit Office (NAO) in the UK into the
circumstances surrounding the significant delays and cost overruns
affecting the UK’s Bay class Landing Ship Dock (Auxiliary) – LSD (A)
– programme has concluded that the Ministry of Defence failed to
adequately mitigate project risks and managed the programme in such a
way that it did not have full visibility of emerging problems.
D
eliveries of the vessels ran between confidence in contractor competence’. It also Sir class landing ship logistic vessels. In April
12 and 28 months late, with costs found that the original budget estimate was 2000 the Ministry of Defence issued an
almost doubling from £332 million wholly unrealistic. Invitation to Tender to five UK shipbuilding
to £596 million. Furthermore, the Ministry However, the NAO’s report also recognised consortia for the design and build of two
of Defence was ultimately obliged to cancel that once the depth of the problems became LSD (A)s with an option for up to three
its contract with lead yard Swan Hunter clear, ‘the [Ministry of Defence] responded more.
(Tyneside) because of continued cost and well and took sensible project management A budget of £150 million was allocated
schedule overruns. and commercial actions to limit its exposure against the initial two-ship requirement, the
The NAO noted that many of the to risk and put itself in a position to deliver NAO noting that the MoD’s procurement
problems on the project ‘stemmed from all four vessels’. strategy ‘recognised that delivering two
the way it was initiated, in particular the The requirement for the LSD (A) LSD (A)s with the full capability required
commercial and project management, programme arose as a result of the need to within the £150 million budget available
budget under-estimation, and over- replace the Royal Fleet Auxiliary’s existing was the key risk to the project,’ and that
The report on the delays and cost overruns affecting the Bay class LSD (A) programme concluded that the Ministry of Defence failed to
adequately mitigate project risks.
Warship Technology March 2008 31
WT Mar - p31+32+33.indd 31 03/03/2008 15:56:30
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