RAF extend SCM process to Harrier and Jaguar fleets

The Royal Air Force's fleet of Harrier and Jaguar aircraft will be serviced by a company that gets paid when parts remain in good working order, not when they fail. SCM, the Somerset-based Claverham Group subsidiary, has agreed a two-year pilot Support Chain Management (SCM) contract worth £3.5million with the UK MoD covering flight control actuators for the two aircraft.

Under the terms of the agreement, a key element of the risk of Britain's Harriers and Jaguars being unavailable for service is being switched from the taxpayer to industry in the spirit of smart procurement. The principles of SCM turn traditional supplier relationships on their head because payments are made according to operational availability rather than per breakdown.

This latest announcement by SCM follows the award of a 10-year, £60 million plus contract by the RAF in 1999. Since this contract was implemented there have been no incidences of Tornado flying restrictions due to the unavailability of flight control actuators which power the rudder and tailerons.

In addition, SCM began a similar two-year pilot contract in January to cover tail rotor actuators for the Lynx helicopters of the Royal Navy and the Army.

Commenting on the contract award on his recent visit to SCM's headquarters, the new Director General Equipment Support (Air), Air Vice Marshall Peter Liddell, said "Because of their guaranteed fee, the less often these systems are removed for repair or overhaul the more money SCM will make. But under SMART procurement we have no difficulty with that because the RAF will win both operationally and financially.

"We gain better Harrier and Jaguar availability, and at the same time the agreed fee is at least 20 per cent less than we calculate the support would otherwise have cost the taxpayer during the contract period."

New SCM Managing Director Alan Fisher said the company was "...in active dialogue with other armed forces and OEMs interested in establishing similar support management initiatives. We are confident that the principles established by SCM will be widely adopted by the aerospace and defence industries in the future."

The Defence Aviation Repair Agency (DARA) will continue to provide third line support as a preferred sub-contractor, thus ensuring the retention of 'intelligent customer status' and operational effectiveness.

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