Management of the Typhoon project

Book excerpt: Getting full value for money from the significant investment in the Typhoon project will depend on the Ministry of Defence successfully progressing the delivery of multi-role capability so that the aircraft can be deployed when required and affordably. The 2010 Strategic Defence and Security Review underlined how Typhoon is core to the RAF's combat aircraft capability and emphasised the Government's commitment to develop Typhoon into a fully multi-role aircraft which can conduct both air-to-air and ground attack missions. Typhoon already successfully undertakes air defence tasks and so far MOD has committed a total of £564 million to upgrade Typhoon for the ground attack role. However, it is unlikely to become the aircraft of choice for most ground attack missions until 2018. The cost of the Typhoon project has risen substantially. Despite the MOD's now buying 72 fewer aircraft (down from 232 to 160, a reduction of 30 per cent), the forecast development and production cost has risen by 20 per cent to £20.2 billion. This is a 75 per cent increase in the unit cost of each aircraft. The cost of supporting each aircraft has also risen by a third above that originally expected. Key investment decisions were taken on an over-optimistic basis and costs have risen at a rate the MOD did not predict. The objectives of four partner nations on the project are not fully aligned and decision-making is slow. There have also been problems with spares and other support which mean the RAF is not flying Typhoon as much as planned.