Major Projects Authority annual report 2014
Red: Successful delivery of the project appears to be unachievable. There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed.
Torygraph:
Aircraft carriers given 'red' warning in Government audit
Two aircraft carriers costing taxpayers £6 billion are at risk of being late and over-budget, the Government has admitted. The delivery of the two Queen Elizabeth-class aircraft carriers was given a “red” rating by the Major Projects Authority (MPA) for the second year in a row. It means the defence project, which has been heavily criticised, is at risk of failure unless action is taken.
The MPA second annual report detailed the status of 199 schemes across Whitehall departments, rating them on a five tier traffic light system from green to red. The decision to release the report on the day of the local elections results will lead to accusations that ministers are attempting to bury bad news. Other projects including the High Speed 2 railway were rated as "amber/red" by the MPA.
The “red” rating for the aircraft carriers project will embarrass defence chiefs. Philip Hammond, the Defence Secretary, last year suggested that he wants Britain to use both of the new aircraft carriers. Defence cuts had meant that one of the new £3 billion carriers would never enter active service with the Royal Navy. Under previous cost-cutting proposals, HMS Prince of Wales was set to be mothballed on completion and used as a reserve vessel.
The final decision on the future of the carriers is due to be made in next the Strategic Defence and Security Review (SDSR) in 2015. MPs have previously warned that trying to rely on a single carrier would undermine the UK’s ability to cope with international crises.
A Ministry of Defence spokesman said: "In November 2013, the Defence Secretary announced that MoD and industry had renegotiated the contract for the QE Carriers. Based on a realistic cost structure for the first time, the contract now includes better cost sharing arrangements to help keep the programme on budget and on track. The Queen Elizabeth will be launched in July ahead of her sea trials in 2017 and flight trials in 2018.”