Minister for Defence Procurement (): I wish to provide a further
update on the Ajax equipment project being delivered as part of
the Armoured Cavalry programme.
The Ajax Platform
Ajax is part of our £41 billion investment in British Army
equipment and support over the next decade, delivering critical
modernisation to address the threats of today and the future. The
Ajax Programme will deliver 589 vehicles to the British Army made
up of 6 variants allowing the Army to operate in all weathers, 24
hours a day.
The range and capabilities of the sensors on the platform and the
on-board software will deliver a step-change in the surveillance
capability of the Army. Ajax will provide a world leading
competitive advantage, from its suite of cutting-edge sensors,
modular armour packs and its 40mm stabilised cannon.
Recovering the programme
The Ministry of Defence have openly acknowledged the problems
previously faced by the Ajax programme. Alongside General
Dynamics, the Ministry of Defence has successfully completed User
Validations Trials to validate the design modifications which
have addressed the noise and vibration concerns, allowing the
commencement of programmed Reliability Growth Trials on 31
January.
Reliability Growth Trials are a standard part of the acquisition
process for military equipment of this nature. These trials
stress test the durability of the vehicle’s platform and
components through a series of battlefield missions that
represent years of activity on the platform. Since starting, the
AJAX, APOLLO, ATLAS and ARES variants have driven over 2,260
kilometres through different terrains, completing a variety of
representative battlefield tasks such as operating across a range
of speeds and terrains, firing weapon systems, using the vehicles
systems and communications and completing specialist tasks such
as vehicle recoveries and repairs using the integrated crane.
Reliability Growth Trials are progressing well. No fundamental
design issues have arisen to date. These trials are part of a
broader trials programme aimed at validating that contracted
vehicle requirements are met.
The MOD have developed with General Dynamics a revised schedule
for the delivery of vehicles that is, subject to contract
amendment, robust, realistic, and achievable. Revised key
delivery milestones set a meaningful Initial Operating Capability
of a trained and deployable squadron. This is scheduled to be
achieved between July and December 2025. Full Operating
Capability will be met when the Army has trained and converted
forces to the Ajax platform to deliver Armoured Cavalry
capability to the Deep Reconnaissance Strike Brigade and its two
Armoured Brigade Combat Teams. This is scheduled to be achieved
between October 2028 and September 2029.
The ability to deliver against this new schedule has been
extensively scrutinised and assured within the department and
externally. A recent review by the Infrastructure and Projects
Authority concluded the programme’s successful delivery is
feasible, re-grading the Ajax programme from Red to Amber.
Resuming Contract Payments
The Ministry of Defence remains clear it will only accept
vehicles that comply with General Dynamics’ contractual
obligations. The department has withheld payments for work
completed and had not made a payment since December 2020. Given
the satisfactory progress against the programme, the department
will resume payments this month, starting with a payment of £480
million. This is approximately half of what has been held back
since December 2020. Restarting payments to General Dynamics
reflects the fact that the programme continues to return to a
firm footing and supports the delivery of the schedule to deliver
operational capability. The payment will cascade to the UK-wide
supply chain of more than 230 companies, reinforcing confidence
the programme is progressing and providing for more than
4000jobs, including hundreds in South Wales.
Future payments will be made against the new schedule and its
milestones, conditional on the delivery of compliant and
deployable Ajax vehicles and continued progress of remaining
trials activity. We have a robust firm price contract for the
delivery of 589 vehicles, which will ensure that General Dynamics
are incentivised to deliver against agreed outcomes. As such, the
whole programme remains within its originally approved budget.
Learning Lessons
The Ajax programme is turning a corner, but this does not remove
the need for the department to identify and learn lessons. We
have always been clear that we will not shy away from taking
action to change the culture and processes across Defence as
necessary. We look forward to receiving the finalised report from
Clive Sheldon KC on the Ajax Lessons Learned Review and
publishing it as soon as practicable.
