June 24, 2022

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UK MoD bungs Boeing ₤ 500m to plug gap left by a system it ought to have supplied under ₤ 800m agreement from 2010

UK MoD bungs Boeing ₤ 500m to plug gap left by a system it ought to have supplied under ₤ 800m agreement from 2010
The UK's Ministry of Defence has awarded Boeing Defence UK a £500m contract without external competition to replace "fragile and ageing legacy systems" it had already been charged with swapping out as part of a 2010 contract. Any lack of availability would "fundamentally impact the UK Armed Forces ability to operate effectively around the globe,"…

The UK’s Ministry of Defence has awarded Boeing Defence UK a ₤500 m contract without external competition to replace “fragile and aging legacy systems” it had actually already been charged with switching out as part of a 2010 agreement.

Any lack of schedule would “fundamentally affect the UK Armed Forces ability to run effectively around the world,” according to a tender notification released today

The extension with Boeing associates with the Future Logistics Info Solutions (FLIS) project, an ₤800 m contract set out by the federal government in 2010 to provide an operationally important logistics details system.

That agreement pertains to an end in 2022 and the MoD prepares to extend it to consist of an inventory management system for the Army, Navy, and Airforce based on its existing Air Domain base stock management system. This will change “fragile and ageing legacy systems” consisting of the Navy’s Comprehensive RNSTS Inventory Systems Job (CRISP) and the Army’s Stores System 3 (SS3).

But under its original agreement, Boeing was supposed to replace the Air Domain base stock systems with the Base Inventory and Warehouse Management Service project (BIMS-A), which would likewise replace CRISP and SS3.

According to a 2011 Public Accounts Committee hearing, BIMS-A was supposed to change these as part of the original Boeing agreement. The MoD was expecting “full operating ability of the first increment of the BIMS task changing the air base inventory systems by March 2013”.

In the oral evidence to that hearing, Major General Ian Copeland described the MoD had actually “added ₤75 m to the Future Logistics Details Services program to resolve the specific danger of devastating failure in our base inventory and warehousing systems.”

He added that he expected the complete system to be provided across Defence in 2014.

We can just presume the job slipped in between the cushions as the MoD has yet to supply The Register with a timely description.

The brand-new Boeing agreement has actually been awarded utilizing the negotiated procedure without prior publication. Called Bridges the Space (BtG), it is designed to create a substitute for the FLIS agreement and the future long-lasting tactical solution, called business Modernisation for Assistance (BMfS) project.

According to the tender notification, the “suggested modifications to the FLIS contract were provided by Boeing to transform the authority’s base stock management systems as part of the original FLIS contract proposal which was not taken up at the time of contract award. It has actually now become necessary to attend to the increasing fragility of the existing CRISP and SS3 platforms which requires the authority to take immediate action to change them prior to they fail and the Authority loses the important capability they offer.”

The new contract is “intended to be a transitional plan, throughout which time the scope of the [logistic information systems] service will be re-shaped and rationalised prior to the BMfS capability becoming completely functional in 2027.”

The MoD said the threat created by transitioning from Boeing to a brand-new provider during that interim duration represented “an inappropriate threat to UK operational capability due to the risk of non-availability, service interruption and interoperability failures.”

The tender pointed out that to preserve and migrate from tradition defence systems required expert skills Boeing had developed over time and were tough to find elsewhere in the market.

In other words, Boeing is getting a brand-new agreement to plug the gap left by a system it need to have provided in the very first location. At ₤500 m, that’s a quite expensive stopgap. ®

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