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QEC Cost Modelling

Providing cost modelling solutions to the Aircraft Carrier Alliance (ACA) in delivering the Queen Elizabeth Class

The Aircraft Carrier Alliance (ACA) is a unique partnering relationship between industry (Babcock, BAE Systems and Thales UK) and the UK Ministry of Defence (MOD) and is responsible for delivering the Queen Elizabeth Class (QEC), soon to be the biggest and most powerful surface warship ever constructed, to the Royal Navy.

The Challenge

The first aircraft carrier will be handed over to the MOD later in this decade, and to meet their challenging timescales, a number of key deadlines and maingate approvals must be met. As the project develops, understanding the cost implications relating to both operational and support requirements is critical. The team needed to ensure visibility of cost drivers, and associated implications on capability, for the Queen Elizabeth Class in support of gate approvals, whilst demonstrating through-life affordability.


LSC Group has delivered cost modelling - developing Through-Life Support and Cost Capability models. Both models have helped the ACA to understand and evaluate critical cost, capability and through-life support decisions. to provide the necessary information to support critical decision making across the programme.

Customer Benefits

Both objective, repeatable and auditable models have delivered significant benefits to the programme, providing greater confidence in the decision making process. Specific benefits include:

TLC model

  • Able to withstand increased scrutiny during business case and gate approvals
  • Provided efficient and traceable evidence to support decision making
  • Clear visibility of through-life support costs, direct linked to key assumptions and data
  • Ability to evidence and answer key affordability questions relating to major platforms, equipment and assets

CCTO model

  • Greater visibility of cost driving elements of the programme and related capability implications
  • Ability to test scenarios through ‘what-if' analysis - performance fulfilment
  • Detail the various combinations available to the ACA based on cost and availability options - recognises that there isn't always one solution

The Outcome

LSC Group continues to provide invaluable cost modelling support to the ACA as the programme develops. Elsewhere, the Cost Capability Trade Off (CCTO) model has been adapted for use across other high profile Maritime programmes, whilst the Through-Life Cost (TLC) model is being developed in response to a number of affordability questions relating to other major MOD assets.