Replacement of MPS Helicopters

Report: 19
Date: 23 September 2004
By: Commissioner

Summary

This report seeks authority to purchase three helicopters to replace the existing machines introduced into service between 1993 and 1996. The current helicopters are becoming less reliable and providing less availability than at any time since their purchase. The Air Support Unit is increasingly expected to be capable of conducting an ever-widening spectrum of tasks in support of territorial policing, public order and counter terrorist incidents.

A. Recommendations

Members are asked to approve:

1. Commencement of the aircraft replacement programme, and subject to guaranteed Home Office funding, incorporate £5.8m in 2005/6 and £2.8m for 2006/7 within the capital programme, to purchase two helicopters in financial year 2005/6 and a further helicopter in financial year 2006/7 subject to consideration of this item as part of the normal budgetary process.
2. Up to 40% capital funding from the Home Office be sought to support the purchase of three helicopters over two financial years.
3. That should Home Office grant not be awarded, the funding and timing of the aircraft replacement programme will be reconsidered.
4. That the MPS consider how to mitigate and reduce revenue costs in order to limit the impact on the Medium Term Financial Plan.
5. That it be agreed that the business case be submitted to the Home Office.

B. Supporting information

1. Since its inception in 1980 the MPS Air Support Unit (ASU) has actively transformed from an ad hoc, bolt on capability to an integrated operational component of modern day policing aimed at ensuring the safety and security of the people of London.

2. The versatility, flexibility and capabilities of rotary wing platforms, combined with search sensors and evidential recording equipment have contributed enormously to increased crime detection, crime reduction and counter terrorism initiatives. The aircraft are force multipliers, in that their attendance at tasks increases the effectiveness of ground units. In one area alone, “Search”, a study undertaken on behalf of the Home Office showed that a helicopter can search and clear a square mile of terrain in 12 minutes as compared to 450 hours when searched by officers on foot. In April 2004 the MPS Management Board accepted that Helicopter Air Support was an integral part of operational policing of the capital city.

3. The ASU is equipped with three AS355N twin Squirrel helicopters, purchased between 1993 and 1996. This minimum number of platforms has ensured a balance between guaranteeing at least one helicopter 24 hours a day, 7 days a week and achieving the 3,300 annual flying hours currently flown by the unit.

Demand.

4. Demand for the services provided by the ASU, is increasingly outstripping both supply and capability. Over the past decade, tasks attended by the ASU have increased by 10% year on year and as importantly, the number of tasks declined due to lack of availability has risen by a similar amount. The ASU is increasingly expected to be capable of conducting an ever-widening spectrum of tasks in support of territorial policing, public order and counter terrorist incidents.

5. The current AS355Ns have flown over 25,000 flying hours and have amassed the largest number of engine hours in the world for this type of helicopter. As a result of this high utilisation, they are rapidly becoming increasingly difficult to support in terms of both man-hours and spares. This has had and will continue to have a serious impact on the continuing ability of the ASU to provide significant, meaningful air support to the police and public of London.

6. A replacement programme for the current fleet is long overdue. This was recognised by the MPA Internal Audit Directorate in their audit in 2002 and a formal aircraft replacement programme was approved by the MPS Management Board in April 2004.

7. The operational requirement for the ASU was initially written in 1999, updated in 2003 and 2004 in recognition of new roles and changes in aircraft capability and legislation.

Evaluation

8. Traditionally, UK Police Air Support operational requirements have been met from the light twin-engine helicopter market. This includes the current ASU platform. Moving to heavier helicopters in the medium twin-engine class is considered too expensive as this would require additional overheads (for example two pilots).

9. The timing of this request for additional capital and revenue growth provision (whether or not supported by Home Office grant) would pre-empt decisions still to be taken on other capital investment opportunities and revenue growth bids. The helicopter bid should be considered alongside other proposals to establish priorities in a rational way as part of the budget submission process, and as outlined in the MPA/MPS Capital Strategy at the last meeting of this committee. It is proposed that members may wish to support the submission of the business case to the Home Office, giving conditional support at this stage, subject to proper consideration of this item alongside others in the budget submission process.

10. A review of the market revealed two light twin-engine helicopter types suitable for evaluation and are currently in service with UK police forces (the EC135 and MD902). A recent addition to the European police and emergency services arena is the EC145, which effectively bridges the gap between the light and medium markets while remaining in the light twin category and is in service with European Police forces.

11. A detailed technical and operational evaluation of each type was undertaken and the ASU Chief Pilot (who had been involved in drafting the operational requirement) was tasked in early 2004 with performing a technical evaluation of the three types of helicopter. A qualified Police Observer assisted him in this process.

12. The assessment took the form of operational flights with UK Police Air Support Units (EC135 and MD902) and an evaluation at the EC145 manufacturing plant for the EC145, as it is not yet in service with UK Police or emergency services. In addition to examination of technical capabilities and performance, each aircraft was assessed against mission task elements, derived from the operational requirement (Appendix 1).

13. One helicopter was discounted as it could not meet the operational requirement. Appendix 2 fully outlines the advantages that the preferred helicopter will offer the MPS.

C. Race and Equality impact

Before any recommendation is made to the Authority for a contract to be awarded, the equal opportunity and diversity policies of the prospective contractors are rigorously examined to ensure transparency and that the promotion of equality of opportunity is evident to ensure that the Authority meets its obligations under the Race Relations (Amendment) Act .2000.

D. Financial implications

1. The cost of the preferred helicopter, including role equipment, is in the region of £5.2m per aircraft. The impact of this capital expenditure can be significantly reduced by grants from the Home Office (HO) of up to 40% of each aircraft purchase price. As HO capital funding is only available for aircraft purchase this report does not address the issues relating to leasing or PFI alternatives.

2. However, various different approaches to funding have been considered but eliminated largely because issues affecting safety, CAA regulations and operational efficiency are more readily and easily met by ownership of the airframe.

3. Significant capital expenditure will be required to fund the aircraft replacement programme. The full capital cost could be in the region of £16m over the next three years. Outright purchase can attract HO grant funding of up to 40% of the cost. Informal discussions with the HO indicate that there is a fund of £5m available for 2005/06 and 2006/07 and the MPS bid would be considered favourably. In the past the HO has committed to two years funding but has not stretched to three years. It should be noted that if there was a change in the funding arrangement or the bid be unsuccessful the additional capital cost would have to be met by the MPS, estimated at £6.4m over 2-3 years.

4. Exempt Appendix 3 sets out the financial implications, both capital and revenue, for the preferred option of purchasing 2 helicopters in year 1 and the third in year 2 (Option 1). Comparative figures for the other helicopter are also given. The full capital cost required is £10.7m in 2005/06 and £5.2m in 2006/07. Assuming that HO grant of 40% is awarded the MPS capital requirement is £5.8m in 2005/06 and £2.8m in 2006/07. These costs include the airframe and role equipment, installation costs and a consumables and tools package. The new CAA and HO requirements are incorporated into the price of new airframes with the possible exception of Accident Data Recorders, the future generation 2 “Airwave” or any new requirements imposed before the final specification is agreed.

5. It has been assumed that the existing aircraft can be sold for £300k each, through the supplier of the replacement aircraft, although it may be possible to sell at a higher value directly on the open market depending on market conditions at the time of sale.

6. An alternative option is to replace the aircraft over 3 consecutive financial years. Similarly, Option 2 in Appendix 3 sets out the capital and revenue implications for this option. The full capital cost would be spread over 3 years, rather than two requiring between £5.2m- £5.5m per annum. Assuming HO grant is awarded, the MPS capital requirement, would be £3m in 2005/06 and £2.8m in years 2006/07 and 2007/08. The revenue implications are the same as under option 1 although the increase in costs will be spread over four financial years. Although from a financial perspective this option derived the lowest net present cost of all the options considered, the disadvantage to this option would be that the ASU would be operating with a mixed fleet of aircraft for a longer period of time. The prolonged need to maintain the proficiency of ASU personnel on two types of aircraft would have a significant impact on operational capability.

7. Consideration of the business case by the Home Office is dependent on the Authority agreeing at this stage the inclusion in next and future years capital programme. The Home Office process requires an approved MPA business case to reach them by 30 September 2004. The HO Minister considers the applications and his decisions are then circulated January 2005. It is believed at this stage that the MPS is the only applicant asking for capital funding in order to purchase aircraft and are a HO priority for the award of funding.

E. Background Papers

Home Office Publication 9/88 “The Comparative Rate of Searching by Police Aircraft and Men on Foot” Dr S. O’Donnell

F. Contact details

Report author: Inspector Philip Whitelaw ASU, Anne Jones TP Business Support Accountant

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

Identification of aircraft

Distributors of the MD 902 Explorer and EC135/EC145, offered to facilitate an operational evaluation by the MPS Chief Pilot. This was achieved by conducting a helicopter type conversion and line/area check with West Midlands and Dorset Police Air Support Units for the MD 902 Explorer and with North Midlands ASU for the ECI35. The EC145 was assessed at the manufacturer’s facility at Donauwoth, Germany.

The Chief Pilot then flew a number of day and night shifts as an operational police pilot in the appropriate force area. While the aircraft was being flown on operational sorties, it offered an invaluable opportunity to note and assess aircraft, systems and equipment performance, handling qualities and thus suitability for the MPS air support role.

In order to obtain a comparative assessment, six representative mission profiles were developed. These were: -

1. Public Order
2. Search

1. Vulnerable Person
2. Offender
3. Rooftop
4. Railway/Canal/River

3. Vehicle Location: Covert and Overt follow & pursuit
4. Photographic & Video
5. Transport of Personnel and/or Equipment
6. Marine Support

These profiles are outlined in detail in the Operational Requirement for MPS Helicopter.

Elements of each profile were flown during the assessment, either during operational tasking or by simulating the task during a return flight, for example public order profile over Birmingham City Centre. Aircraft Flight Manual (AFM) data, once verified was also used to further develop the comparative assessment.

Given the non-dedicated nature of some of the flights, much of the assessment was subjective. However where the opportunity arose, quantitative data was recorded to validate Flight Manual performance graphs.

To support the assessment, various key aircraft characteristics, dimensions and performance elements were measured, and scored.

There have been numerous technological, environmental and safety based developments in the helicopter market since the procurement of the last fleet. When determining the viability of a replacement fleet all of the following areas were taken into consideration:

• Reduced noise signature
• Improved passenger and ground safety
• Improved crash worthiness
• Improved reliability and maintainability
• Increased payload, range and endurance enabling future expansion of the aircraft role
• Electronic Flight Instrumentation Systems (EFIS)
• Fully coupled autopilot and single pilot Instrument Flight Rules (IFR) capability (A likely CAA legal and safety requirement within the near future)
• Improved information technology and display systems
• More powerful and higher quality daylight camera and thermal image sensors.

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