2020 Report details for project: Army Basing Programme

Project name Army Basing Programme - there are 7 reports for this project: 2014, 2015, 2016, 2017, 2018, 2019, 2020
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Organisation MOD (D17 ) - see all reports for this organisation
Report year 2020 (data is from September 2019)
Category Military - see all reports for this category
Description: An infrastructure led transformation programme to enable the Army 2020 structure and withdraw of personnel from Germany.
DCA (RAG) Amber/Green
DCA text: The IPA Delivery Confidence Assessment (DCA) rating at Q2 1920 (30th September 2019) was Amber/Green, which has improved since last year's Q2 1819 Amber, due primarily to the following factors; - Op FARAN closed on 30 Sep 19 with all associated personnel and their families successfully relocated to the UK, which means the Programme has achieved its primary Strategic Defence & Security Review 2010 target of returning 20,000 troops from Germany by 2020, thus enabling the closure of the German sites they occupied. - The closure of the sites in Germany drives the underlying benefits of the Army Basing Programme, and following a full review of the programme's benefits position the Programme is forecasting to exceed its current annual running costs savings target of £241M. - Following measures taken in the latest budgetary round, the Programme remains affordable, and based on latest projections of individual project costs, expects to complete within its overall budget of £1.819Bn CDEL limit. Since the Q2 1920 (30th September 2019) Amber/Green IPA DCA, the following non-project operating environment activities have impacted the original Q2 IPA DCA; - Decisions in the Defence Estate Optimisation programme, with which the Army Basing Programme shares dependencies, has led to increased confidence around a number of the remaining Army Basing Programme projects in delivery. - The recent COVID19 outbreak has impacted on the Programme. While this will not have a material bearing on the Army Basing Programme's strategic goals, it has affected the schedule and costs of the remaining projects, though as at Apr 20, it is too early to quantify the extent of this impact. Since the Q2 1920 (30th September 2019) Amber/Green IPA DCA, the following primary project actions have impacted the original Q2 IPA DCA; - The Infrastructure and Projects Authority Review, conducted in Feb 20, provided a GREEN Delivery Confidence Assessment and recommended the Senior Responsible Owner explore early graduation from the Government Major Projects Portfolio. - Extensive work has been undertaken to increase confidence in the Programme's financial benefits reporting, including the impact of the decision in October 2018 to retain a small enduring training capability in Germany. - The Programme has worked hard to developed an effective succession plan for its staff, which should drive greater confidence in its people that their future after the Programme graduates is assured, and therefore address concerns around retention as the Programme enters its final phase.
Start date 2013-05-22
End date 2021-03-31
Schedule text The scheduled baseline project end date at Q2 1920 (30th September 2019) is 31/03/21, has shortened by 240 days since last year's Q2 1819 date of 26/11/21, due primarily to the following factors; - This reflected the agreement of an updated mandate for the Programme, reflecting the impact on the Programme of the Better Defence Estate strategy, and subsequently Army 2020 Refine. - These factors had a material impact on the Programme, either by affecting the long-term future of sites the Army Basing Programme had planned to invest in, or by changing the Unit laydown on retained sites. - The updated Mandate affirmed the Senior Responsible Owner's intention of graduating the Programme in Mar 21, accepting that a small number of Army Basing Programme projects would continue to deliver improved infrastructure for units in situ beyond this date. Since the Q2 1920 (30th September 2019) baseline project end date of 31/03/21, the following non-project operating environment activities have impacted the original Q2 baseline project end date; - The recent COVID19 outbreak has impacted on the Programme. While this will not have a material bearing on the Army Basing Programme's strategic goals, it has affected the schedule and costs of the remaining projects, though as at Apr 20, it is too early to quantify the extent of this impact. Since the Q2 1920 (30th September 2019) baseline project end date of 31/03/21, the following primary project actions have impacted the original Q2 baseline project end date; - The Infrastructure and Projects Authority Review, conducted in Feb 20, provided a GREEN Confidence Assessment and recommended the Senior Responsible Owner explore early graduation from the Government Major Projects Portfolio. The Senior Responsible Owner accepted this recommendation subject to the development of a realistic and achievable graduation plan. - As a result, the Programme is planning to graduate from the Defence Major Programmes Portfolio in Autumn 2020, and a plan to achieve this is being developed. - The Senior Responsible Owner is clear the final decision to graduate will be condition based, with a final judgement to invoke an Infrastructure and Projects Authority Exit Review to be made in Summer 2020, based on satisfactory progress against the Graduation Plan.
Baseline £307.95m
Forecast £314.49m
Variance 0.02%
Variance text: Budget variance less than 5%
Whole Life Cost £2,270.79m
WLCost text: The baseline Whole Life Cost at Q2 1920 (30th September 2019) is £2,270.79m, has increased by £211.53m since last year's Q2 1819 (£m) baseline Whole Life Cost of £2,059.26m, due primarily to the following factors; - Some non-Programme running costs were inadvertently included in the Q2 19/20 financial baseline, which were mis-forecast, and since Q2 these have been reallocated to the appropriate budget area, returning the Programme forecast to its original baseline. - The remaining cost delta relates to forecast cost increases in the projects that are yet to complete within the Programme (some of which relate to projected inflation increases that have not materialised and were later removed from the forecast as a result). - The Programme remains within its overall Control Total. Since the Q2 1920 (30th September 2019) £2,270.79m baseline Whole Life Cost, the following non-project operating environment activities have impacted the original baseline Q2 Whole Life Cost; - The recent COVID19 outbreak has impacted on the Programme. While this will not have a material bearing on the Army Basing Programme's strategic goals, it has affected the schedule and costs of the remaining projects, though as at Apr 20, it is too early to quantify the extent of this impact. Since the Q2 1920 (30th September 2019) £2,270.79m baseline Whole Life Cost, the following primary project actions have impacted the original Q2 baseline Whole Life Cost; - Since the Q2 report, the programme funding has been reforecast in line with departmental annual budgetary processes, and now reflects an updated spend profile. - In preparation for Programme graduation in Autumn 2020, a reconciliation of the historic Programme spend is underway to provide an assurance that the historic accounts are accurate. - The Programme is closely monitoring and controlling remaining project costs to ensure they remain within the overall Programme budget.
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Notes2:
Sourcefile IPA_2020.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.