2021 Report details for project: Defence Estate Optimisation
Project name | Defence Estate Optimisation - there are 6 reports for this project: 2018, 2019, 2020, 2021, 2022, 2023 |
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Organisation | MOD (D17 ) - see all reports for this organisation |
Report year | 2021 (data is from March 2021) |
Category | Military - see all reports for this category |
Description: | Defence Estates Optimisationis a long-term investment to modernise the defence estate. It is an ambitious 25-year portfolio of construction activity, unit and personnel moves, and site disposals that will deliver a better structured, more economical and modern estate that more effectively supports military capability. |
DCA (RAG) | Amber/Red |
DCA text: | Compared to financial year 19/20-Q2, the Infrastructure Project Authority's Delivery Confidence Assessment rating remained at Amber/red. This is primarily due to the following factors: The Departmental Integrated Review has provided a clear capability requirement and resolved the Defence Estate Optimisation funding shortfall. This should increase the assessment from Amber/Red to Amber. The portfolio is now planning to restructure it's operating model to take forward the outcomes from the review. |
Start date | 2016-09-30 |
End date | 2041-03-31 |
Schedule text | Compared to financial year 19/20-Q2, the project's end-date remained scheduled to finish on 31 March 2041 This is primarily due to the following factors: There are a number of reasons for schedule changes (both positive and negative) across the portfolio since the last Annual Report of Major Projects (Q2 2019). During this period of time the portfolio has updated its operational Performance Measurement Baseline on two occasions in March 2020 and December 2020. The significant driving factor for the December 2020 baseline change was to consolidate changes from Infrastructure Optimisation, the Team responsible for reviewing the capacity on re-provision sites, and establish a programme baseline to measure progress against. The December 2020 baseline update captured significant programme changes that had been identified, most notably (i) capture changes from the Army War Gaming exercise in Q2 2020, (ii) significant scope changes i.e. removal of Aspirational Wave from programme, (iii) Alignment to Annual Budgetry Cycle 21 / Infrastructure Review Planning Costs 3 forecasts (iv) general project / programme maturity changes identified though Assessment Studies, or through the Portfolio Change Process. |
Baseline | £47.10m |
Forecast | £46.22m |
Variance | -2.00% |
Variance text: | The budget variance is less than or equal to 5%. |
Whole Life Cost | £1,266.33m |
WLCost text: | Compared to financial year 19/20-Q2, the projects Baseline Whole Life Cost increased from £1166.85m to £1266.33m. This is primarily due to the following factors: Q2 19/20 was based on Version 8 of the baseline, whilst Q4 20/21 reflects activity undertaken related to Version 10.2. Specifically focusing on the changes to the Whole Life Cost there are 2 Key Factors: 1. Defence Estates Optimisation portfolio scope changed, principally the Rotary (helicopter) programme has been removed from the Aspirational Wave from the portfolio, this had an approximate value of £1.7Bn. 2. The removal of Private Finance has resulted in a reduction in Resource Departmental Expenditure Limits as the Unitary Charge no longer applies. The Capital Departmental Expenditure Limits demand has increased as a result of the On-Balance sheet accounting treatment but this is offset by the removal of Rotary (helicopter) referenced previously. |
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Sourcefile | IPA_2021.csv |
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