Equipment Analysis MBDA UK and its Common Anti- Air Modular Missile (CAMM)

Transcription

1 OIDA Strategic Intelligence Case Study #03 Equipment Analysis MBDA UK and its Common Anti- Air Modular Missile (CAMM) OIDA Strategic Intelligence - SASU au capital de euros n SIRET Porte de l Arénas, Hall C CS13326, 455 Promenade des Anglais Nice Cedex 3 France Tel :

2 OVERVIEW May 24th 2018, the United Kingdom s Secretary of State for Defence Gavin Williamson announced at the RUSI Sea Power Conference in London, that the Sea Ceptor Missile System (cost: 850m) has become an active part of the Royal Navy. What is the Sea Ceptor? It is a world-class missile system made by MBDA UK that protects the Royal Navy s new aircraft carriers. MBDA, CAMM manufacturer, is a multi-national company with offices in France, Germany, Italy, Spain, the U.K., Australia, and the U.S. It is truly an European company as it is a joint-venture between the aerospace giants, Airbus (France) (37.5%), BAE Systems (United Kingdom) (37.5%), and Leonardo (Italy) (25%). Figure 1: MBDA s Shareholders Source: MBDA MBDA designs and manufactures missiles and missile systems for a range of operational needs for land, sea, and air. They offer 45 operational missile systems and countermeasure products as well as more than 15 devices which are still being developed. The Sea Ceptor is the naval variant in the Common Anti-Air Modular Missile (CAMM) programme, designed to provide the next generation of anti-air guided weapons for land, sea and airborne operations. Furthermore, it is fully compatible with existing command and control (C2) and sensors (radars etc) facilities. Developed and manufactured by MBDA UK under the umbrella of the company s Portfolio Management Agreement with the Ministry of Defence (MoD), the missile will be the core component of the Future Local Area Air Defence System (FLAADS), a requirement for both land and naval environments, replacing Rapier FSC and Seawolf.

3 Similarity with other MBDA missiles CAMM missiles will take over existing subsystems from MBDA s portfolio: Datalink (radar data sharing), C2 (Command and Control) concept and the propulsion from the ASRAAM (Advanced Short-Range Air-to-Air Missile); C2 (Command and Control) from Sea Viper (featuring more than 75% re-use of Sea Viper C2 software, the British variant of PAAMS system that equips advanced British, French and Italian anti-aircraft destroyers.) Table 1: CAMM Specifications Name: FLAADS / AV-MMA Sea Ceptor CAMM-ER Primary Function: Surface-to-air missile Surface-to-air missile Surface-to-air missile Prime Contractor: MBDA MBDA MBDA CAMM Users: Brazil Great Britain Brazil Chile Great Britain New Zealand Italy Length: 3.2 m 3.2 m 4.2 m Diameter: 166 mm 166 mm 190 mm Weight: 99 kg 99 kg 160 kg Speed: > Mach 3 > Mach 3 > Mach 3 Range: > 25 km > 25 km > 45 km Guidance System: All-weather active RF seeker All-weather active RF seeker All-weather active RF seeker Communication: Two-way data link Two-way data link Two-way data link Propulsion: (from Roxel) (from Roxel) (from Avio) Platforms: Tatra T /4 4 RMMV HX77 8x8 FFG Type-23 FFG Type-26 CGS FFH Meko 200 Anzac FSG Tamandaré ARIS AGC-170 C4I Air & Missile Defense System / CMS MIC4AD CMS DNA(2)/SSCS CMS-330 Siconta Mk III? Forza NEC SIRUS C2 Launchers: SVL ExLS Sylver A50 Mk41 SVL ISO 20 SVL

4 Deployed: HMS Argyll: 2017 HMS Westminster: 2018 HMNZS Te Kaha : 2018 HMNZS Te Mana: 2019 Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence Figure 2: Commonality, Modularity and Re-Use (CM&R) in TCW Source: Atkins limited HISTORY For over a decade, MBDA UK has been developing its own surface-to-air missiles by using common elements from other systems in its portfolio. The CAMM project began in 2004 when the UK s MoD awarded a 10 million Technology Development programme (TDP) to MBDA through the Joint Sensor and Engagement Networks Integrated Project Team. This first phase included carry-on studies related to the Soft Vertical Launch system, a dual band two-way datalink, an active RF Seeker, and open systems architecture to ensure compatibility with a wide range of search and acquisition radars and command and control systems. The second phase (2008) costing 15 million, was committed to maturing the RF Seeker with trials completed on a QinetiQ test aircraft (a Hawker Siddeley HS-780 Andover C1) at Boscombe Down (United Kingdom). This stage helped out to fulfil the FLAADS business case. In 2008, the Complex Weapons Portfolio approach was announced, with FLAADS being one of the pillars of the portfolio to be completed. In 2009, MBDA UK presented its first prototype to its clients. In order to reduce the development costs, the CAMM system is based on a modular architecture with common subsystems (self-steering, data link, actuator, proximity fuse...). The demonstrator took over existing subsystems, such as the Datalink (radar data sharing) and the C2 (Command and Control) concept and the propulsion of the ASRAAM (Advanced Short-Range Air-to-Air Missile) developed by MBDA. In 2011, MBDA announced the Sea Ceptor Missile System, the navy variant of the FLAADS. Tests were carried out in 2011 from a truck to get exploitable data for the FLAADS-Land programme.

5 Table 2: Trials and Milestones of CAMM Date Country Site Commentary 05/2009 UK Boscombe Down RF Seeker trials completed on a QinetiQ test aircraft (a Hawker Siddeley HS-780 Andover C1) at Boscombe Down. This second stage helped fulfil the FLAADS business case. 20/05/2011 UK Henlow site End of series of tests to validate the slow vertical launch concept (with ejection and turnover) and CAMM RF Seeker. Initial tests were conducted from a fixed canister where the first successful soft launch was completed. 10/2011 UK - 01/2012 UK Belfast 30/01/2012 UK - The MoD delayed the announcement of a demonstrator for the naval variant (Sea Ceptor) that would use the Common Anti-Air Modular Missile at its core. MBDA selected Thales Basingstoke to supply the CAMM laser proximity fuze under an 11m contract. The UK MoD awarded MBDA the 483m FLAADS (Future Local Area Air Defence System) Demonstration Phase Contract. MBDA developed the naval air defence system, named Sea Ceptor, to replace the Vertical Launch Seawolf currently in service on the Royal Navy s Type 23 frigates. Significantly, Sea Ceptor is also planned to be the principal air defence system on the successor Type 26 Global Combat Ship. 27/06/2012 UK - A Guided Firing Readiness Review (Significant Milestone) was conducted. 22/08/2012 UK Defence Science and Technology Laboratory Seeker Critical Design Review which demonstrated seeker readiness for air carriage trials. 30/09/2012 UK - Acceptance of the Guided Firing Readiness Review s deliverables by the Project Team. 19/03/2013 UK - Critical Design Review commenced. 04/2013 Sweden Vidsel Range Two instrumented firings trials successfully conducted. 05/04/2013 UK - 05/2013 UK/USA - MBDA and Thales extended their cooperation on CAMM from missile designing to manufacturing capabilities. Lockheed Martin and MBDA announced a cooperative effort between them, in order to offer MBDA missile systems to be used by the MK 41 and ExLS launchers. 09/ Successful test by Lockheed Martin and MBDA of the first launch of a CAMM from the MK 41 Vertical Launching System (VLS) launcher using the Host variant of the ExLS. 09/09/2013 UK Lostock facility The UK's Ministry of Defence (MoD) awarded MBDA a 250 contract for the delivery of the Sea Ceptor air defence weapon system that comprises the Common Anti-air Modular Missile (CAMM) and system equipment. Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence

6 Table 3: Other Trials and Milestones of CAMM Date Country Site Commentary 13/10/2013 UK - MBDA collaborated with UTC Aerospace Systems to develop a Micro-Electro-Mechanical Systems (MEMS)-based Inertial Measurement Unit (IMU) for current and future programmes such as MBDA s Complex Weapons (CW) Portfolio and CAMM. This new IMU will be backward-compatible with an existing UTC Aerospace Systems MEMS IMU making upgrades easier. 04/10/2013 New Zealand Wellington Selection of the CAMM system by the Royal New Zealand Navy (RNZN) for its ANZAC Frigate Systems Upgrade project and Local Area Air Defence (LAAD) system. Sea Ceptor will equip frigates HMNZ Te Kaha and Te Mana. 14/05/2014 UK - The UK MoD awarded a 36m contract to MBDA for the FLAADS- Land s Assessment Phase. This phase demonstrated the adjustment and evolution of core command & control systems for land environment, while integrating the missile into truck-mounted and fixed defensive options to replace Britain s Rapiers. 21/05/2014 New Zealand - The New Zealand Ministry of Defence signed a contract on 21st May with MBDA for the provision of Sea Ceptor for the Local Area Air Defence element of the Royal New Zealand Navy s ANZAC Frigate Systems Upgrade (FSU) project. 29/05/ /06/2014 Sweden Vidsel Range These firings were the first seeker guided firings for the Common Anti-air Modular Missile (CAMM), including using its two-way data link to communicate with the Sea Ceptor system. The trial demonstrated the functionality of Sea Ceptor s Command and Control (C2) system, and its ability to process data from a third-party radar and then command an engagement by a CAMM missile. 28/11/2014 Brazil - MBDA announced the Brazilian Navy had become its 2nd main export customer. The missiles were to equip the next generation Tamandare (CV03) corvettes. 12/2014 UK - 08/2015 Sweden Vidsel Range UK ordered the FLAADS Land Surface to Aim Missile System from MBDA which will eventually replace the British Army's Rapier Field Standard C (FSC) short-range SAM systems. The contract was valued at 228 million. Final set of qualification firings of MBDA s Common Anti-air Module Munition (CAMM) missile in Sweden. 04/11/2016 UK - The UK Ministry of Defence awarded a 100m Demonstration and Manufacture contract to MBDA for the Sea Ceptor Air Defence System. It would be used in the Royal Navy s (RN) new class of frigates, the Type 26 (T26) Global Combat Ship (GCS). Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence

7 Table 4: Trials and Milestones of CAMM Date Country Site Commentary 24/02/2017 UK Falkland Islands The UK awarded 153 million worth of contracts to equip the Falkland Islands with the new GBAD system Sky Sabre. The Sky Sabre system as a whole was subject to 148 million on contracts; 78 million to Rafael and Babcock (40%) for the Modular, Integrated C4I Air & Missile Defense System (MIC4AD); 31 million to MBDA for Land Ceptor integration; 8 million to SAAB for Giraffe integration; 31 million to MBDA for additional Land Ceptor launchers and UK training facilities. Sky Sabre is due to be in service by /04/2017 UK - MBDA signed a 323m deal for the next batch of cutting-edge air defence missiles for the British Army and Royal Navy. 30/05/2017 Italy - CAMM-ER was authorised for a direct, single-source procurement by Italian MoD to replace its Aspide / Spada systems by 2021 for the Italian Air Force. 95m were dedicated to the contribution of development costs in 2017 and 5m in /2017 UK 11/2017 UK 12/2017 UK Outer Hebrides range Outer Hebrides range Outer Hebrides range Royal Navy completes Sea Ceptor firing trials from HMS Argyll. The Royal Navy successfully conducted more firing trials of the new Sea Ceptor Air Defence System. This second set of trials from HMS Argyll saw the system tested against more complex scenarios, including rapidly engaging multiple simultaneous threats. The first of a series of installation test firings were successfully completed on HMS Westminster. Each Sea Ceptor platform similarly completed an installation test firing while they prepared to re-join frontline services after their refits. 02/2018 UK - The ground-breaking Sky Sabre Air Defence Missile System was unveiled before the 16th Regiment Royal Artillery at Baker Barracks on Thorney Island. 05/04/2018 UK - MBDA and Lockheed Martin jointly completed the qualification of MBDA s Common Anti-air Modular Missile (CAMM) from Lockheed Martin s Extensible Launching System (ExLS) 3-Cell Stand Alone Launcher following a series of trials. 28/04/2018 UK Outer Hebrides range The second set of installation test firings were successfully completed on HMS Montrose. During tests from HMS Montrose, the system successfully intercepted a fast-moving drone target. 24/05/2018 UK - 24/05/2018 UK - The Sea Ceptor Missile System ( 850m) entered into service with Royal Navy. HMS Argyll was equipped with the Sea Ceptor. It was the first time the new air defence missile system was deployed on operations. The Type 23 frigate HMS Argyll will be deployed in the contested South China Sea, Japan and close to the Korean peninsula.

8 ANALYSIS CAMM Sea Ceptor With minimal logistical support and maintenance required, MBDA s Sea Ceptor Air Defence Weapons System is an appealing choice to navies. Figure 3: MBDA s Sea Ceptor Source: MBDA In 2017, Sea Ceptor successfully completed its firing trials from HMS Argyll. It will eventually replace the VL Sea Wolf on the U.K. Royal Navy s Type 23s. In 2016, the United Kingdom s Ministry of Defence (MoD) awarded MBDA a 100 million contract for Sea Ceptor to be integrated into the Royal Navy s new class of frigate, the Type 26 Global Combat Ship. Sea Ceptor differs from its predecessor Sea Wolf thanks to its added capability of protecting not only the warship, but also nearby vessels. Former U.K. Minister for Defence Procurement, Harriett Baldwin, stated that Sea Ceptor would protect British interests against known and unknown threats. She went on to further state that Sea Ceptor will be used by the Royal Navy s new Type 26 frigates, that are tasked to keep their nuclear deterrent submarines and two new aircraft carriers safe during operations. Sea Ceptor is an all-weather, active RF seeker, and air defence weapons system, that can be retrofitted on a range of platforms such as 50m OPVs, frigates, and destroyers. The system can fire simultaneously multiple targets with a missile called the Common Anti-air Modular Missile (CAMM). CAMM has a powerful rocket motor allowing to propel missiles double the range of that of Sea Wolf, and has an active radar seeker to engage targets, thus eliminating the need for target illuminators. The system is first of all fitted with a compact launch system with soft vertical launch technology, enabling a 360-degree coverage. This achieves a minimum launch signature, and a two-way datalink between the missile and launcher. Secondly, it is equipped with a gas generator which ejects the missile from its canister. This device has many effects: it conserves the rocket motor s energy to power the intercept, reduces the minimum intercept range, limites stress on the launch platform, reduces maintenance and costs, and eliminates management of the hot gas efflux on-board. Sea Ceptor

9 operates on the SYLVER and Mk41 launchers using a quad-pack configuration (various flexible canister configurations are available). Over the past five years, MBDA has worked with Lockheed Martin to develop a lightweight version of the MK41 launcher for CAMM. A certificate was signed for a lightweight launcher called ExLS, which is intended for smaller vessels. The launcher allows a soft launch by using compressed air, and capable to fire the main missile motor not on board. Figure 4: MBDA s CAMM Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence Sea Ceptor can target any surveillance sensor system. With its supersonic speed and range in excess of 25 km, it has broad target settings (high-speed, manoeuvring, or low signature targets), and also the ability to engage small naval vessels, combat aircrafts, UAVs, and future threats from new generation supersonic anti-ship missiles. In terms of command and control, the system can be integrated with new and existing naval combat systems, and configured to operate as an independent air defence capability, or as an integrated capability within a command and control architecture hosted on the vessel s combat management system. Sea Ceptor is capable of defending an area of 500 square miles with the ability to protect the host and nearby vessels from varied sources of attack. Former MBDA U.K. Managing Director, Dave Armstrong, succinctly said that: Naval air defence is more critical than ever given the growing capability of airborne threats. CAMM s operational flexibility and ease of integration, both as retrofit or on a new build, combine to offer unrivalled product advantages. Recently, the United Kingdom s Ministry of Defence announced Sea Ceptor had been developed and manufactured through contracts worth around 850 million. This announcement is a severe failure for the Portfolio Management Agreement, through which the U.K. MoD and MBDA continue to operate.

10 The CAMM programme is today estimated at billion only taking into account recent contracts between 2012 and 2018, and not between 2005 and This leads to think the programme has been through cost overruns due to a lack of competent workforce within the British missile industry. Table 5: UK MoD Contracts for CAMM programme Date Amount Navy (Sea Ceptor) Army (Land Ceptor) 30/01/ million 09/09/ million - 14/05/ million - 12/ million - 04/11/ million - 24/02/ million - 21/04/ million Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence Sea Ceptor s Prospective Customers International customers are choosing CAMM for their future air defence capabilities was a successful year for Sea Ceptor with two navies selecting the Air Defence Weapons System for their vessels. In May 2014, the New Zealand Ministry of Defence and MBDA signed a contract for Sea Ceptor to be integrated into the New Zealand Navy s ANZAC Frigate Systems Upgrade (FSU) project. In November 2014, MBDA announced that Brazil selected Sea Ceptor for its next generation Tamandaré class corvettes. Finally, the Republic of Chile has recently selected Sea Ceptor for its Type-23 frigate. Sea Ceptor s popularity has grown since then, with the Spanish Directorate of Armament and Material approving in December 2017 to conduct a technological risk reduction study (worth 9.5 million) to analyse the feasibility of integrating Sea Ceptor onto future F-110 frigates.

11 Table 6: Future Sea Ceptor Customers Date Country Programme Commentary 2022 Brazil Tamandaré 2023 Finland Squadron India SRSAM 2023 Spain F-110 Frigate Brazilian Navy has recently issued an international RFI for the Tamandaré-class corvettes. It is unclear if the Brazilian Navy will respect its choice made in 2014, to select MBDA s Sea Ceptor to provide for local area air defence for its next generation Tamandaré class corvettes. The Squadron 2020 project designed by Rauma Marine Constructions (RMC), aims to build four corvettes with potentially the Sea Ceptor. MBDA s missile is competing against Raytheon s ESSM and IAI s Barak-8 surface-to-air missile. MBDA has partnered with DRDO and acts as a strategic and key partner. The recent Joint Venture L&T MBDA is proposing two solutions based upon either the VL Mica (hot launch) or the SeaCeptor (soft launch) for the 10 required SRSAM systems, in which six will be dedicated to the 6 stealthy next generation missile vessels (NGMVs). Late 2017, DGAM awarded a 9.5m contract to MBDA España for risk reduction related to the integration of the SeaCeptor on board new F-110 frigates. MBDA s system is competing against Raytheon s RIM-162 ESSM Block 2 for equipping frigates. Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence Sea Ceptor may also be an option for Finland and its four Squadron 2020 corvettes. Another competitor for this market is Raytheon s RIM-162 ESSM (Evolved Sea Sparrow Missile). Raytheon has expanded its missile s capability from sea-based to a ground-based air defence environment. Italy s position is interesting. Officially, CAMM-ER will replace only the Spada system for the Italian Air- Force and the Skyguard system for the Italian Army. However, it is understood that CAMM-ER may also replace some time soon the Albatross system for the Italian Navy in order to maintain a standardisation in procurement already there. CAMM FLAADS/Sky Sabre The UK Royal Artillery equivalent is Land Ceptor or Sky Sabre. CAMM will soon replace the British Army s Rapier ground-based air defence system. The benefits for the U.K. of operating a common missile are multiple, such as significant cost benefits throughout the lifecycle of the systems, development, procurement, support costs, and sharing a common stockpile. Compared to Rapier, Land Ceptor has over triple the range (25 km+) and is able to intercept the most challenging targets in any weather conditions, including cruise missiles and precision guided munitions. Land Ceptor made its debut at DSEI 2017 and has been undergoing trials for the British Army. The system has a substantially revised design to initial development prototypes and incorporates numerous new features. It was decided to use the in-service HX-77 as the base vehicle for Land Ceptor, enabling the capabilities of the system to be expanded, whilst minimising the overall fleet size.

12 According to MBDA UK, a key new feature of the new design is the modular launcher. It features a palletised loading module enabling rapid munition reload of the magazine, and a selfmounting/dismounting capability allowing for a wider range of air/sea/rail transport options and for dismounted operations in fixed/semi-fixed locations. A common interface module means the launcher can be easily integrated onto a wide range of vehicles. Systems provide flexibility for the launcher to act as an independent fire unit, as well as in a networked battery configuration. Figure 5: MBDA s Land Ceptor Source: MBDA With the engagement of Beyond Visual Range (BVR) targets possible through the use of mid-course guidance and radar updates, it heralds a step-change to the current GBAD system. This new GBAD system Sky Sabre will be constituted by: The Modular, Integrated C4I Air & Missile Defense System (MIC4AD), Israeli Rafael; The Giraffe AMB radar, Swedish Saab: The Land Ceptor missile, MBDA UK; The RMMV/MAN HX77 Heavy Utility Truck. The GBAD system Sky Sabre is also benefiting from already used equipment. The 16th Regiment Royal Artillery (RA) is already using Giraffe AMB radar from the Swedish maker Saab, which may help the future transition from Rapier. Sea Ceptor costs may have been underestimated. Indeed, recent announcements estimate Land Ceptor to cost 723 million. Fourteen systems are to be acquired by the U.K. s Royal Army.

13 FLAADS/CAMM-ER Prospective Customers Land Ceptor is MBDA s launch configuration of the Enhanced Modular Air Defence Solutions (EMADS) stable. This increased payload could also be used to further the extended range CAMM-ER interceptor and provide air defence out to 40km+ for customers who require greater range. EMADS brings together best-of-breed systems and technologies from across MBDA s European base to save time, development costs and provide a flexible system for air defence provision. Italy s current in-service SPADA should be replaced by the CAMM-ER based system. Table 7: Future FLAADS/EMADS Customers Date Country Programme Commentary 2020 Brazil AV-MMA 2020 Switzerland BODLUV 2020 In 2014, MBDA became partners with AVIBRAS Aeroespacial and have together studied the opportunity to develop a solution based upon the ASTROS 2020 system. DDPS has recently shortlisted David s Sling (from Rafael Advanced Defense Systems and Raytheon), Patriot system (from Raytheon), and SAMP/T system (from Eurosam) for evaluation. German Iris-T system and British CAMM system have not been shortlisted Italy Aspide / Spada replacement The Italian MoD last year authorized funding for development and acquisition of the CAMM-ER, being developed by MBDA Italia Finland GBAD The goal of GBAD development is to achieve a sufficient highaltitude defence capability and regional cover. Source: Annual Reports, Company Website, Primary and Secondary Research OIDA Strategic Intelligence Focus on the CAMM-ER programme MBDA Italia is in charge of the development of CAMM-ER for the Italian Air-Force and the Italian Army. Italy joined the CAMM Air-Defense Missile Program in MBDA Italia awarded the development contract for the CAMM-ER propulsion to Avio, with a planned trial to take place in The Italian MoD authorized last year funding for the development and acquisition of the CAMM-ER, currently being developed by MBDA Italia. The 95 million funding is planned as followed: 2017: 5 million 2018: 15 million 2019: 30 million 2020: 20 million 2021: 25 million The CAMM-ER will be compatible with the Rheinmetall Italia 3D X-Band Search radar (X-TAR 3D) X-TAR 3D and the Posto Comando Modulo di Ingaggio (PCMI) Forza NEC, especially for the Italian Army. It will also be compatible with the Leonardo Kronos-Land AESA Search radar and the SIRUS Command and Control system for the Italian Air Force. The Italian MoD chose this SHORAD to replace the ASPIDE system by 2021, and to avoid a capacity gap. Italy s requirements: An all-weather RF active seeker; A soft launch type launching system (reduce physical protection on the launching systems and limit impact on the ground); Auto-destructive capacity in flight from the Command and Control (C2);

14 Other contenders for Italian armed forces were : AMRAAM/NASAMS from Kongsberg/Raytheon (eliminated due to the impossibility to self-destruct and its lack of range) VL MICA from MBDA France (eliminated by its lack of range) ASTER 15 from MBDA (eliminated by its lack of range) IRIS-T from Diehl (eliminated by its Infra Red Imaging System and its lack of range) All these missile systems were not soft launch types. Focus on Team Complex Weapons (Team CW) The Team Complex Weapon Framework Agreement (TCW) defines an approach to delivering the UK s Complex Weapons (CW) requirements in an affordable manner. This value for money proposition also ensures a viable industrial capacity between MBDA UK, Thales UK, QinetiQ and Roxel. Pressure on defence spending has driven innovation in cost reduction and TCW might be a solution to conduct defence programmes until the end while safely funding them. The MoD stated within the framework of the Defence Industrial Strategy published at the end of 2005, the establishment of a long-term partnership in the British missile industry in order to maintain industrial skills. Figure 6: How does TWC reduce costs? Source: Atkins Limited With annual funding of 700 million per year, the programme includes investment of around 7 billion in the complex weapons sector. The TCW is expected to generate 1.2bn in savings over 10 years from 2010 and avoid dispersion of MoD budgets.

15 Figure 7: Expenditure on the Complex Weapons Programme to Source: National Audit Office Figure 8: Weapons portfolio from MBDA Source: Atkins Limited An innovative approach to the MOD s Complex Weapons pipeline has been based on a Partnered Portfolio Management Agreement with MBDA UK Ltd, which focuses on the

16 development of families of weapons utilising the principles of commonality, modularity and reuse. Linkages between weapons in a portfolio should reduce overall costs. Complex weapons are considered tactical weapons that rely on guidance from systems to achieve precision effects. They fall into five categories: air-to-air, air defence, air-to-surface, anti-ship, surface-to-surface. It should be noted that the Complex Weapons Programme does not include torpedoes, non- U.K. sourced missile systems or some legacy systems. Figure 9: How has the Complex Weapons Programme evolved? Source: National Audit Office analysis of departmental data Table 8: Milestone of the Team Complex Weapons Date Commentary 2005 Defence Industrial Strategy launched Team Complex Weapons (MBDA, Thales, Roxel, QinetiQ) formed and announced at Farnborough International Air Show. Testing the Team CW Principles through an Assessment Phase in June 2008, the Ministry of Defence awarded the first element of a 250 million Assessment Phase to test the Team CW approach towards the delivery of future Complex Weapons capability. The Assessment Phase (AP) was implemented through separate enabling contracts with MBDA (UK) Ltd and Thales UK for the six programmes contained within it, and a legally-binding Teaming Agreement to refine and test the Team CW approach/business Model. Subsequent elements of the AP were approved during In March, the MoD signed a Portfolio Management Agreement (Interim), the PMA-I, with MBDA following the conclusion of the Assessment Phase, which had demonstrated the feasibility and benefits of the Team CW approach. Under the agreement, the MoD and MBDA UK signed a Through Life Enabling Contract (TLEC) with its first package of work worth 330 million for the development and manufacture of two of the six Team CW launch projects and to conduct further assessment work on two projects.

17 February: National Security Through Technology White Paper reaffirmed the importance of sustaining Freedom of Action and Operational Advantage for aspects of complex weapons where National Security is an essential consideration. Building on lessons learned through operation of the Portfolio Management Agreement (Interim), an updated agreement between UK MOD and MBDA now called the Portfolio Management Agreement was signed on the 17th July UK MoD and MBDA continue to operate the Portfolio Management Agreement. Source: MBDA According to the 2017 Defence Equipment Plan, only 0.68 billion has been saved to date, however a further 0.67bn is anticipated from contracts already in place that are yet to be announced. The estimated savings ( 1.2bn-1.3bn) come from netting off the notional additional costs of single-source procurement from the benefits of the extant procurement strategy. Figure 10: Weapons portfolio from MBDA Source: Atkins Limited However as previously said, CAMM s programmes costs may have been underestimated. Recent announcements do not prove the complete effectiveness in cost saving.

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19 - MBDA Press Release (04/11/2016) MBDA s Sea Ceptor surges ahead with contract for the UK Royal Navy s Type 26 frigates. MBDA. [online] Available at: [Accessed 02nd May 2018]. - MBDA Press Release (21/04/2017) MBDA awarded 323 million deal for next batch of CAMM air defence missiles for UK Armed Forces. MBDA. [online] Available at: [Accessed 02nd May 2018]. - MBDA Press Release (12/09/2017) Final configuration of British Army Land Ceptor unveiled. MBDA. [online] Available at: [Accessed 02nd May 2018]. - MBDA Press Release (20/11/2017) Royal Navy completes Sea Ceptor firing trials. MBDA. [online] Available at: [Accessed 02nd May 2018]. - MBDA Press Release (20/12/2017) Royal Navy completes Sea Ceptor firing trials. MBDA. [online] Available at: [Accessed 02nd May 2018]. - MBDA Press Release (05/04/2018) CAMM completes qualification trials from 3-cell ExLS launcher. MBDA. [online] Available at: [Accessed 02nd May 2018]. - Ministero della Difesa (12/06/2017) Programma di sviluppo, qualifica e acquisizione della munizione Common Anti Air Modular Missile Extended Range - CAMM-ER. Ministero della Difesa. [online] Available at: _TER17_020.pdf [Accessed 02nd May 2018]. - Ministry of Defence. (13/02/2014) The Major Projects Report National Audit Office. [online] Available at: pdf [Accessed 02nd May 2018]. - Ministry of Defence. (27/01/2017) The Defence Equipment Plan 2016 [online] Available at: /Defence_Equipment_Plan_2016_final_version.pdf [Accessed 02nd May 2018]. - Ministry of Defence. (31/01/2018) The Defence Equipment Plan 2017 [online] Available at: / EP17_Final.pdf [Accessed 02nd May 2018].

20 - Ministry of Defence. (24/05/2018) 850m Sea Ceptor missile system enters service with Royal Navy [online] Available at: [Accessed 24th May 2018]. - Stanton B. (06/02/2018). Reducing Weapon Costs through the Team Complex Weapons Portfolio Agreement. Atkins Limited. [online] Available at: [Accessed 02nd May 2018]. - Tran P. (12/04/2018). MBDA is pitching its Sea Ceptor for Finland s sea-based weapons buy. Defense News. [online] Available at: [Accessed 05th May 2018]. - Willetts D. (24/05/2018). Royal Navy warship heading for North Korea will carry a lethal new missile system, the Defence Secretary is set to reveal. The Sun. [online] Available at: [Accessed 24th May 2018].

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