MECHANISED INFANTRY PROGRAMME

Rating: Compared to financial year 24/25 Q4, the NISTA/SRO Delivery Confidence Assessment (DCA) rating at 25/26 Q4 remained at Amber. This is due to the following factors. 1. This is predominantly driven by global supply chain issues following the war in Ukraine, and Covid, which are not unique to Defence or Boxer but impacts at a key point of vehicle manufacture. 2. The programme’s Initial Operating Capability is delayed with increased risks requiring strong management action, and has been reapproved but not yet published, pending the Defence Investment Plan. 3. The lead contractors of ARTEC, Rheinmetall, and Krauss Maffei Wegmann Nexter Defence Systems (KNDS) have not yet stabilised or fully resolved their ongoing supply chain delays to vehicle production, which is also impacting other areas including support and training.

Schedule: Compared to financial year 24/25-Q4, the programme's end-date at 25/26-Q4 remained the same at 31/3/2033. This is primarily due to the following factors. 1. This year the Initial Operating Capability schedule forecast was delayed as no longer achievable due to supply chain delays impacting delivery and formally reapproved through Review Note 5. 2. This has been further reviewed as the required Collective Training alongside Ajax in Armoured Infantry Brigades is currently impacted by the Ajax pause and alternate training options in the same timeframe were not viable or meaningful. Boxer Collective Training to achieve Initial Operating Capability is being reset and decoupled from Ajax to de-risk this whilst Wavell Structures are matured and joint training will follow; subject to Ajax outcomes.

Cost: Compared to financial year 24/25-Q4, the project's departmentally agreed Whole Life Cost at 25/26-Q4 (measured in £m) decreased from £7009.30M to £5150.92M. This is primarily due to the following factors. 1. The Programme Whole Life Cost Budget (not cost) to Full Operating Capability has decreased since Q4 24/25 as a consequence of funding removal following Army re-prioritisation of further procurements and Defence Investment Plan Outcomes. 2. There is an ongoing conversation with industry on treatment of contractual VoP (Variation of Price), caused by inflationary supply chain pressures which are also awaiting the Defence Investmetn Plan.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: The Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 is AMBER, compared with the project's assessment last year of AMBER. This is due to the following factors. The Amber Deliver Confidence Assessment reflects the whole programme delivery forecast to full operating capability (FOC). The Amber rating is still predominantly driven by global supply chain issues following the war in Ukraine and Covid, which are not unique to Defence or Boxer but impacts at a key point of vehicle manufacture. There are increased risks requiring strong management action to drive towards IOC which are not expected to continue through to FOC. Delivery performance is impacted by the lead contractors ARTEC, comprising Rheinmetall and KNDS, who have not yet stabilised or fully resolved their ongoing supply chain delays to vehicle production - which is also impacting other areas including training. Further remedial work is also required on technical documentation currently being drafted to enable training and safety case work. Similar supply chain issues are also impacting the supply of Bowman communications equipment for Boxer also compounded by obsolescence and global supply chain impacts following the war in Ukraine. The DCA is confirmed as Amber by a recent external NISTA Gate 4 programme review.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 remained at 31/03/2033.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) increased from 6967 to 7009. This is primarily due to the following factors. The Programme Whole Life Cost (WLC Budget) (not cost) to Full Operating Capability (FOC) (which includes provision for addition vehicle procurement) has increased by £41.44m since Q4 23/24 as a consequence of re-profiling from prior years into future years and application of the latest inflation estimates offset by re-statement of Foreign Exchange assumptions. This was a direct consequence of vehicle and Bowman delays. As prior year control totals are not reset as a result of forecast reprofiling, this gives an artificial picture of an increase in cost.

Source: NISTA Annual Report 2024-25 (data)

Rating: The Senior Responsible Owner's Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber. This is primarily due to the following factors. The programme still forecasts to meet its approved Initial Operating Capability in October 2025 but there are increased risks requiring strong management action. The lead contractors of ARTEC (a supplier), Rheinmetall, and Krauss Maffei Wegmann Nexter Defence Systems (KNDS) have not yet stabilised or fully resolved their ongoing supply chain delays to vehicle production, which is also impacting other areas including training. Further remedial work is also required on Technical Documentation currently being drafted to enable acceptance and safety case work. Similar supply chain issues are also impacting the supply of Bowman communications equipment for Boxer also compounded by obsolescence and global supply chain impacts following the war in Ukraine.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained schedule to finish on 2033-03-31. This is primarily due to the following factors. The programme has maintained its overall schedule forecast since Q4 2023 against the approved Initial Operating Capability of October 2025, which allowed for risk and contingency in its delivery activities. Industry delays to equipment delivery have consumed contingent float and impacted other programmes aspects, but revised delivery plans are mitigating impacts, including some joint rather than sequential trials between industry and MOD. Early training of driver and operator/maintainer instructors have been undertaken collaborative with Dutch and German allies to de-risk training design, whilst industry are switching supply chains and identifying interim or alternate components to progress trials and manufacture.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 increased from 6741m. to 6967m. This is primarily due to the following factors. The Programme Whole Life Cost (WLC) Budget (not cost) to Full Operating Capability has increased by 227m since Q4 22/23 as a consequence of re-profiling from prior years into future years. As prior year control totals are not reset as a result of forecast reprofiling, this gives an artificial picture of an increase in cost. This was a direct consequence of equipment and Bowman delays and prudent risk-adjustment.

Source: IPA Annual Report 2023-24 (data)