DTR on edge of collapse

is the WAG listening or just ignoring what is going on in the real world - wake up - this St Athan project is doomed!!

UK's Defence Training Review is nearing collapse, warns MP

By Gerrard Cowan Jane’s Defence weekly

31 December 2008

The UK's GBP12 billion (USD18 billion) Defence Training Review (DTR) is on the verge of collapse due to a "triple whammy of rising costs, time delays and national security concerns", Mark Pritchard MP has told Jane's.

The secretary of the Conservative Defence Committee was speaking on 30 December after the National Audit Office (NAO) confirmed media reports that it is considering opening an investigation into the QinetiQ-led project, which is the largest private finance initiative in British history.

In a letter to Pritchard, Tim Burr, NAO head, said: "We will continue to monitor the [defence] department's progress to see whether and when the time might be right to start a full value-for-money investigation."

Pritchard said that the DTR is "a privatisation too far". He said a key driver of rising costs - which went from GBP11 billion to GBP12 billion - and increasing delays was the need to build an infrastructure, including transport links, at RAF St Athan in Wales, which is where the project is based.

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AUDIT OFFICE TO INVESTIGATE ST ATHAN

If you go to the Daily Mail site you can add comment.

NAO hovering over QinetiQ's £12bn defence contract By Karl West Daily Mail

Last updated at 11:54 PM on 29th December 2008

The National Audit Office has QinetiQ in its sights once again.

The Whitehall spending watchdog is considering launching an investigation into a £12billion defence training contract won by the controversial outsourcing group.

It would be the second time QinetiQ, a former government defence research laboratory, has been at the centre of a probe by the NAO, following a damning report in November 2007 into the firm's flotation.

Investigation: The National Audit Office may look more closely into QinetiQ's recent activities

The troubled contract to train Britain's armed forces, which has seen costs spiral from £11billion to £12billion, has not even started but the government has already spent £34.6million of taxpayers' money on the deal.

Mark Pritchard, Tory MP for The Wrekin in Shropshire, has written to the NAO urging it to look into the defence training review programme.

NAO boss Tim Burr told Pritchard in one letter: 'We will continue to monitor the (defence) department's progress to see whether and when the time might be right to start a full value for money investigation.'

People in Wales call for an end to the bombing of Gaza

CND Cymru press release 30th December 2008

press office: t: 0845 313 8 414 m: 07704 67 57 87

People in Wales call for an end to the bombing of Gaza

A new year's eve vigil will take place at the Nye Bevan statue, Queen St,
Cardiff between 5-6pm tomorrow (31st December) in response to the
persecution and bombing of defenceless civilians in Gaza.

It is of particular significance to us in Wales that many of these attacks
on Gaza are being carried out with fighter jets, fuel and missiles provided
by the taxpayers of the USA. In 2006, the United States signed a $1.3
billion contract with the arms manufacturer Raytheon for thousands of TOW,
Hellfire, and 'bunker buster' missiles, to add to Israel's ever growing
arsenal - which already includes at least 200 nuclear warheads1. Raytheon is
a major player in the Metrix Consortium which has won the contract to build
a multi billion pound privatised MoD 'Defence Academy' in the Vale of
Glamorgan 2.

CND Cymru Vice Chair Ray Davies said today:
'While we in Wales relaxed and enjoyed a peaceful Christmas, death and
destruction rained down on the men, women and children of Gaza.'

'Our televisions showed us the painful images of screaming children,
hysterical mothers, the injured grasping their Korans as they were carried
to the Gaza Al Awda Hospital which Welsh charitable money helped to build.'

'The charity Middle East Childrens' Alliance emailed us in Wales to say that
following the attacks they had no medicine, blood plasma, or beds and they
were, unable to cope with the hundreds of casualties and the dying being
brought to their doors.'

'As mealy mouthed politicians around the world come out with their pathetic
well balanced condemnation of the violence on both sides, people ask, 'just
what can we do?''

Jill Gough CND Cymru National Secretary commented:
'Should the St Athan 'Defence Academy' go ahead, Wales would be playing a
central role in training military forces to bomb civilians in their homes
using Raytheon (and other manufacturers') weapons.'

'At the end of all this, there will have to be talking and negotiation, why
not cut out the senseless bullying, destruction, suffering and waste of life
- which is exacerbating both the short and the long term situation, and just
start the talking right now.'

'The only beneficiaries of military violence are the arms manufacturers and
their shareholders.'

Tomorrow's vigil may be a small expression of solidarity given the terrible
suffering being wrought on the ordinary people of the region, but this is
only part of a largely unreported worldwide protest being voiced around the
World 3.

Vigil organisers CND Cymru and Palestine Solidarity Cymru are asking people
to channel their anger to try and change the never ending cycle of death and
destruction, and bring justice to both sides and to put pressure on our
government and the United Nations to take firm action to end the violence
and the occupation.

ENDS
Interviews/More information:
Ray Davies/Wendy Lewis t: 02920 889 514 m: 07845982238 e:
wendya.lewis@talktalk.net
Notes:
1.
www.corpwatch.org/article.php?id=13944
2.
www.cynefinywerin.org.uk/index.php?docid=142
3. Reference/link to other protests around Britain:
www.palestinecampaign.org

business as usual for academy - Oh no its not!

‘It’s business as usual’ for the academy Oh no its not! What a panto!

Peter Collins article ‘It’s business as usual’ for the academy is so misleading and unbalanced - Metrix talk of partnerships with WAG who seem to be happy to continue with this unfeasible fantasy which is unpopular with the military top brass and even more unpopular with PCS the union representing the skilled workforce involved. How can boss Barrington from Metrix claim that privatised training is more efficient or cost effective when they are cutting courses by 25% jeopardising effectiveness or in plain English - putting our soldiers at risk-as a desperate measure to reduce costs already £2 BILLION over budget. Rumour is that Qinetiq and Raytheon don't seem to see eye to eye which doesn't bode well for training delivery. Qinetiq shares have dropped because of the likelihood of a collapse of the (DTR) St Athan project. We must not forget there have been protests worldwide against Raytheon weapon suppliers, there is a massive protest now in Bristol however it is very likely that permanent protest will be coming to St Athan with Raytheon.

Write to Wales online ecletters@mediawales.co.uk and Peter Collins

peter.collins@mediawales.co.uk

write to us no2militaryacademy@inbox.com

beleaguered PFI - DTR -

A privatisation too far!
from Private Eye

Land Securities was to convert a "super-hangar" at St Athan, South Wales, into a huge new defence academy for around £1bn, but it seems the credit crunch has put paid to it raising that kind of cash. Whether another property company - most of them struggling to raise money - steps forward looks uncertain. The problem with the private finance initiative is that although the profits are great, they come over a long period and not many firms are in the mood for splashing out and waiting for their cash. If the Ministry of Defence can't persuade another company in, the whole scheme could collapse.

Meanwhile the list of compromises on quality that will be made if the deal does go ahead lengthens by the week.

Tory MP for the Wrekin Mark Pritchard, whose constituency will lose out when aeronautical training moves from RAF Cosford to St Athan and who has described the scheme as "a privatisation too far", recently raised a host of concerns with the National Audit Office.

Cherie's Place: Private Eye Reports on Land Trillium Departure
By CherryPie
They will understandably want to make a profit but why should Welsh taxpayers subsidise private organisations? The full article entitled 'Why Subsidise Private Profit' can be found here. More information on DTR from a Shropshire ...

FOI questions and answers on costs

REQUEST FOR INFORMATION (RFI)

A. Your e-mailed Request For Information received on 22 November 2008.
Thank you for your enquiry at Reference A, in which you asked seven questions relating to the cost and savings of the Defence Training Review Programme (Package 1), and the staff delivering the training. I will answer each one in the order presented.

1. Can the Department clarify when it was assessed that the cost had risen to £12billion? What were the significant cost growth in the programme identified by Metrix in March 2008.
An initial Clarify and Confirm phase, (carried out between November 2007 and March 2008) sought from Metrix confirmation of their Package 1 solution. The outcome from this activity was a formal submission from Metrix on 7 March 2008. On receipt of this submission it was assessed that the potential cost of DTR Package 1 had risen by approximately £1bn to £12bn. The significant cost growth identified was predominantly due to delay in the Programme. This figure represents inflation pressures, changes in build assumptions and financing costs and has been the subject of significant further constructive work between the IPT and Metrix to drive out costs.

2. When was this information passed to the Minister for the Armed Forces and when was it passed to the Welsh Assembly Government?
I assume that you refer to the rise in Metrix costs above. If this is the case then Minister (Armed Forces) office was advised of this development on 14 April 2008. The information that cost growth had taken place was not formally passed to the Welsh Assembly Government, however, I believe, they were made aware of this on 3 July 2008.

3. Copies of any documentation, email etc in relation to the increase in cost by £1billion sent by the DTR IPT to Welsh Assembly or Minister.
The rise in costs submitted on 7 March was a matter for the Department and Metrix as it formed part of their confidential bid submission. Therefore, no correspondence has taken place between the DTR IPT and members of the Welsh Assembly in relation to this cost increase.

4. In a letter from Tim Burr, with reference to key staff delivering training programmes, he states "the Department monitors these gaps on a monthly basis". Can you provide copy of these monthly stats for the previous 12 months?
Vacancies across the civilian instructional officer grades are formally monitored on a quarterly basis (an additional return was also reported in July). Please see Annex A for details of the vacancies by college since January 2008.

5. How many military personnel are currently filling civilian posts in Package 1 sites?
Only the Royal School of Signals (RSS) at Blandford currently has military personnel filling civilian posts – they have 9 additional JNCO Systems Engineering Technicians to help deliver instruction. These military personnel would not be required if the RSS was fully manned with civilian instructors.

6. What are the current broad projection of the through life (30 years) savings of the DTR Package 1 project?
As you are already aware, the Department is currently engaged in a Final Clarification and Confirm exercise to update various aspects of the Metrix Package 1 proposals. Metrix’ revised proposals were received on 18 November and are now being evaluated. Until this evaluation is fully completed and reports submitted to the Programme governance Board, I am not in a position at this time to be able to give you the projections you seek.

7. What is the difference between the current rates of pay of Specialist Instructional Officers and "commercial rates of pay for professionally qualified training staff"? Do the Department when making such statements not recognise the current Specialist Instructional Officers as "professionally qualified training staff"?
The current rates of pay of Specialist Instructional Officers are aligned to those of the broader banded structure within MOD and these rates of pay are already in the public domain. The concept of “commercial rates of pay for professionally qualified training staff” is a proposal by Metrix rather than MOD. The Metrix proposal, with underlying rationale, is described in the TU Information Document at Appendix 7 paragraphs 2.4 and 2.5 (ITN 7.4.7.2) to which we understand you have access.

If you are unhappy with this response or you wish to complain about any aspect of the handling of your request, then you should contact me in the first instance. If informal resolution is not possible and you are still dissatisfied then you may apply for an independent internal review by contacting the Director of Information Exploitation, 6th Floor, MOD Main Building, Whitehall, SW1A 2HB (e-mail Info-XD@mod.uk). Please note that any request for an internal review must be made within two calendar months of the date on which the attempt to reach informal resolution has come to an end.
If you remain unhappy following an internal review, you may take your complaint to the Information Commissioner under the provisions of Section 50 of the Freedom of Information Act. Please note that the Information Commissioner will not investigate the case until the internal review process has been completed. Further details of the role and powers of the Information Commissioner can be found on the Commissioner’s website, http://www.informationcommissioner.gov.uk.

Yours sincerely,
G A NIELD Brigadier DTR Integrated Project Team Leader

Another wheel comes off the DTR wagon

PCS briefing

Another wheel comes off the DTR wagon. Land Securities Trillium announce their exit from the METRiX consortium

Introduction

Things seem to be going from bad to worse for the DTR programme. Firstly, there was the withdrawal of preferred bidder status from METRiX for package 2, then there was the credit crunch that saw increasing costs to the tune of at least £1 billion, then the fall in land prices the sale of which the project is predicated upon, then a further shift to the right in terms of the date of contract signature, and now one of the main companies in METRiX- Land Securities Trillium has announced its withdrawal from the programme.

Land Securities Bail Out

On the 11^th December the Financial Times carried an article that announced Land Securities Trillium was withdrawing from DTR package 1. Portsmouth South MP, Mike Hancock who sits on the Defence Select Committee said, “With Land Securities pulling out this must seriously damage the entire project. It was never financially viable.”

LST was one of the main pillars in the METRiX consortium responsible for the build programme. After putting £20 million into the project and seeing its potential profits being continually squeezed they announced they were withdrawing “in the light of the significantly increased bid costs, carried at risk by the bidders, required as the project moves into detailed design work.” Charles Barrington, METRiX CEO, tried to put a brave face on the catastrophic announcement claiming that Land Securities departure was for “strategic reasons.” He confidently maintained that METRIX would find a new building partner “within the month.” PCS therefore expects an announcement by Barrington by the 12^th January in regards to the new company joining METRiX. However, PCS will not be holding its breathe…

Who Knew?

The first that PCS heard of the Land Securities withdrawal from METRiX was an article in the Financial Times! Indeed, this was the case for Members of Parliament too. Mark Pritchard, MP for the Wrekin, and staunch supporter of the PCS campaign, asked this very question in the House of Commons. He still awaits a reply.

PCS will be complaining about this failure by the MoD to advise the Trade Unions.

Relations between the Trade Unions and the Package 1 IPT have hit a new low because the Team Leader seems to be frustrated that PCS is exploiting possible leaks within his team and is using the Freedom of Information Act to make the MoD reveal information they'd rather not share at all. This is bad enough, but talking to the press appears to be the final straw.

The IPT Team Leader appears bemused by our long running campaign and wishes PCS would simply stop its work of defending public sector jobs and engage constructively with privatisation.

Qinetiq feels the shockwaves from Land Securities withdrawal

The Guardian reported on 19^th December that Qinetiq has weakened after a sell note from UBS.

UBS said "In our view, QinetiQ is trading at a full valuation, yet we believe its outlook is clouded by a number of significant downside risks. We believe it will be very difficult for QinetiQ shares to re-rate until these concerns are addressed. We also believe consensus views on valuation and earnings are at risk of turning more negative."

In particular UBS is concerned about the recent departure of Clive Richardson, the head of the Europe, Middle East and Africa region; the withdrawal of Land Securities' Trillium division from a consortium including Qinetiq bidding for a £12bn MoD contract, as well as growing UK defence budget pressures.

The report concluded:

"We are lowering our price target primarily driven by the removal of the value we ascribed to the MoD's Defence Training Rationalisation contract following Trillium's withdrawal from the joint venture bid. We believe the risk
relating to the DTR contract is now too high to warrant a more positive stance."

St Athan- The Home of the Defence Training Academy, Can't Recruit IO's – You Couldn't Make This Up!

PCS has long maintained that IO's will not transfer across the country to St Athan, as a survey of members has borne out. The MoD whilst accepting this as its number 1 risk, bullishly maintained that its risk mitigation plan took this into account.

However, the military at St Athan have now been forced to admit that they cannot recruit and retain IO's at the site and have submitted a business case for Recruitment and Retention Allowance.

There are 63 band D IOs within the scope of No4 School of Technical Training (No 4 SOTT) which is a part of DCEME. There are currently 17 gapped posts (i.e. 28%) within the Training Operations Group.

In addition 8 IOs have left No 4 SOTT in the last 12 months- their reasons are:

• Wishing to remain Civil Servants and not wanting to work for a METRiX company.
• The Civil Service salary is uncompetitive.
• Promotion within the Civil Service,

The Business plan notes:

“Even the fact the MOD St Athan has been chosen as the preferred site for DTR has had no significant positive impact on the ability to retain staff. Instead, recent departures have merely exacerbated the situation as remaining (civilian and military) are required to undertake additional work and thus they become disillusioned. It is anticipated that increased stress (and associated absence) and staff resignations are likely to increase as a direct consequence.”

Finally the business case warns that “morale of many of the civilian staff at No 4 SOTT is at a crucial juncture.”

It is a harbinger of the future disaster of DTR if MoD does not heed the advice of PCS and the evidence waived under its nose- Risk Mitigation Plan or not.

Geoff Nield Quits DTR Package 1 as End Date Moves Over the Horizon

At the last DTR IPT meeting with the Trade Unions Geoff Nield announced he will be leaving post by March 2009. Nield has pushed the project hard and is obviously frustrated at the slowness of progress being made and the intransigence of PCS in particular. With no end in sight, despite the propaganda contained in the IPT’s newsletter, Nield has decided to call it a day and move onto pastures new.

He will be replaced by Anthony Harkin who has been delivering the RSME privatisation at Chatham.

Tim Inshaw Visits IO Conference and Tells PCS How to Campaign

In November Major General Tim Inshaw, DTR Programme Director, attended the IO conference and spoke to delegates about DTR. Inshaw was forthright in his defence of the programme but admitted that if IOs didn’t transfer to the Defence Training Academy that it would be a disaster for military training. Clearly, by inference at least, he does not believe this is a real possibility.

In addressing conference delegates, Inshaw suggested that PCS’ campaign strategy is flawed. He was happy that PCS should tell the politicians and public that DTR was bad for Civil Servants personally, but he urged PCS not to insist that DTR is bad for defence. Inshaw advised conference that all the military top brass agreed that DTR was good for defence. However, when challenged on the ability of METRiX to deliver the contract without the existing IO cadre, he looked decidedly uneasy.

Tim Inshaw Denies PCS Request for Information on Risk Mitigation Plans

Inshaw was asked to make available to PCS the Risk Mitigation Plans for package 1. However, in a letter dated 25^th November the General said, “I regret it is not possible to afford this opportunity at this stage of the Project…all change programmes have some risk attached to them…we have taken note of the views of SIOs and we have a comprehensive approach to managing these risks.”

This response is disappointing and PCS will now use the Freedom of Information Act to try to uncover the information MoD is so desperate to hide.

Qinetiq and Raytheon, Don't Seem to See Eye to Eye

There is always lots of chatter on projects such as DTR. Some of it turns out to be extremely prescient, other “information” just hearsay. However, it has been reported to PCS that all is not well between Qinetiq and Raytheon. There appears to be bad feeling between the two companies, with Raytheon believing its been marginalised by its partner. This does not seem to bode well for the future of the project where close working and harmony between training delivery and training support/course design is essential.

Some personnel working on DTR are impressed with Raytheon’s course design software, but not a lot else. They have posed the question why MoD can’t just buy under license this software without going down the privatisation route?

Does DTR Breach The Cabinet Office Protocols On Staff Being Transferred Into a Redundancy Situation?

PCS is currently liaising with its specialists in this field to ascertain whether DTR does indeed fall foul of the agreements on staff being TUPE’d into a redundancy situation.

PCS will communicate the outcome once it is known.

Conclusion

PCS continues to oppose DTR step by step. PCS will continue to campaign with you and for you. The New Year will herald the second anniversary of the preferred bidder for DTR. PCS will be planning to take part in a meeting to be held in the Welsh Assembly.