Future Beyond Line of Sight (FBLOS ) Acquisition and Operating Model Analysis

Background and requirement

In order to deliver the FBLOS Skynet 6A capability, the MOD required a number of relationships with industry suppliers supported by an effective and efficient operating model. These commercial relationships could follow a number of different models, with varying levels of collaboration and shared objectives.

  • A typical contract between supplier and customer for the supply of goods (assets), deliverables and services.
  • A partnership contract which includes particular partnership principles
  • An alliance between MOD and one or more industry organisations (with loose contractual ties between alliance members.
  • Establishment of a Joint Venture between one or more parties.

Approach

TP Group supported the development and review of potential FBLOS Acquisition Strategies and Operating Models, provided recommendations based on industry experience if required and supported the MOD Delivery Team to understand potential acquisition approaches the MOD could adopt to acquire the FBLOS capability. The potential acquisition approaches and operating models investigated are as follows:

a. Asset-based: MOD contracts for goods and equipment (I.e. assets) based on its stated requirement.

b. Managed Service: MOD contracts for managed services – it does not typically own the underlying solutions and assets, although it may provide them as GFx.

c. Operating Lease: MOD contracts for part (or all) of an asset or solution – in the context of FBLOS, this would typically be for capacity and would include some aspect of operation.

d. GOCO PPP: MOD contracts for both equipment (assets), which it funds with public finance, and the ongoing management of those assets.

e. PF2: MOD contracts for the equipment (assets), which is funded by the private sector and the ongoing management of these assets.

f. Alliance: MOD and one or more organisations enter in to alliance arrangement, whereby all parties work together collaboratively to achieve a goal.

g. Joint Venture: MOD and one or more private sector organisations create a Joint Venture company for a shared service.

h. Hybrid: A contract, which is a mixture of a number of approaches, stated above.

TP Group also provided an independent view of the viability, benefits and risks for each of these approaches for each of the specific elements of the future BLOS capability and the likelihood of achieving the MOD requirement within the project timescales.

Outcome

The analysis support the definition of the FBLOS Delivery Team’s Acquisition Strategy, Target Operating Model and achieved successful approval of the DCNS FBLOS IGBC submission.

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