Project Controls support for Type 26 Programme

Background and requirement

The Type 26 programme is delivering new Anti-Submarine Warfare Frigates for the Royal Navy. TP Group demonstrated their strength in Cost Modelling while assisting DE&S during the demonstration phase, enabling delivery of the successful business case securing Main Gate approval for the £5.1 billion manufacturing phase.

Having identified a need to upgrade legacy cost models, DE&S tasked TP Group to develop tools to support an effective negotiation of the batch one manufacturing contract with BAE Systems.

Post-contract award, DE&S tasked TP Group to support the manufacturing phase of the programme, developing independent EAC estimates using complex bottom-up cost estimating techniques. Our staff also applied EVM expertise, enabling the programme team to understand their schedule baseline and reporting techniques. TP Group have assisted the Type 26 programme throughout the DE&S transformation programme, enabling adoption of a Project Controls based approach to programme management.


TP Group provided critical Cost Modelling and Estimating expertise to both the demonstration and manufacturing phases of the type 26 programme; during the demonstration phase staff supported the Type 26 project team in generating cost estimates, maintaining cost models and schedule risk analysis tools to support both contract negotiations and programme business case approval. TP Group successfully adapted the existing cost models to generate real-time cost estimates. Expediting the generation of programme cost estimates, TP Group support enabled a responsive and agile development of costs during the negotiation of the batch one manufacturing contract. TP Group assisted the Type 26 combat system team with cost estimating and modelling during the assessment and demonstration phases. Tasks included taking supplier information and internal MOD GFX data normalising the data to get a common dataset across the programme.

During the manufacturing phase, TP Group supported the Type 26 project team developing a full bottom-up cost estimate taking a Product Breakdown Structure (PBS) cost estimate and converting to a Work Breakdown Structure (WBS). TP Group assisted the Type 26 programme in maintaining the baseline set with monthly reviews against change requests raised by the contractor and the customer, providing independent assurance on the effects of change requests on the baseline prior to implementation.


Through effective Project Controls discipline, tpgroup was able to provide the Type 26 senior management team and contract negotiating team with real-time cost data during the negotiations of the Batch 1 manufacturing contract. The teams were able to realise approximately 10% cost savings from the initial contract proposal and secure a Target Cost Inventive Fee (TCIF) contract placed for the first batch of ships. TP Group staff supported the development and adoption of Project Controls discipline within the DE&S project team, as part of the wider DE&S transformation programme allowing key members of the Type 26 senior management team to scrutinise and question KPIs delivered by the contractor and maintain the overall contract performance to deliver on time.


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