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Options and how to write one

What is an Option?

An Option can be a measure - or set of measures - designed to enhance capability or save cost against the equipment or equipment support programme, and will have an impact on defence final outputs:

Enhancement Options are designed to address a capability shortfall or exploit an opportunity to enhance capability.
Savings Options are designed to remove cost or address an overprovision.

There are examples of composite Options which have both enhancement and savings aspects.

Why is there a requirement to write an Option?

The Biennial Financial Planning Round places pressure on the Equipment Capability Customer (ECC):

To restore both the equipment and equipment support programme back to baseline (‘control total’).
To build in any new capability requirements from changes in Defence Planning Assumptions.

Savings Options and enhancement Options help to resolve this pressure.

Within Through Life Capability Manangement, Capability Investigations are used to identify potential Options to resolve capability shortfalls as well as exploit opportunities. Shortfalls are normally identified through a Capability Audit or Balance of Investment (BOI) study.

What outputs are there from raising an Option?

A well worded Impact statement (IS) is essential to allow an Option to be considered properly.

All Impact Statements must be objective, clear and concise, and be written in a manner appropriate for Ministers with all abbreviations spelt out.

There is an 800 character limit and all Impact Statements are to start ‘This Option would…’

The points to consider in the Statement include:

Implications of the Option in the wider context of Defence Final Outputs.
Implications across all Defence Lines of Development (DLoD).
Implications for Industry and the Defence Industrial Strategy.
Balance of Investment considerations.
Absolutely compelling requirements – such as a legal responsibility to carry out a course of action.

How are Options raised?

Options are raised using a spreadsheet pro-forma, completed by Director Equipment Capabilities (DEC) - or by Resource and Plans (RP) for S08 Options - in consultation with Capability Planning Group (CPG) members.

Completing a pro-forma for an Option requires a clear understanding of the key underlying assumptions. These should be clearly documented within the pro-forma and all DLoDs must be reflected.

The following are attributes of a good Option:

The Option focuses on the capability implications of the Option, that is, outcome not input.
The Option clearly demonstrates an integrated and unified approach across:
- Capability Planning Groups within Capability Management Groups.
- Separate Capability Management Groups.
- All DLoDs – with documented evidence of stakeholder engagement and agreement.

The Option is written in a manner which clearly considers all 5 aspects of TLCM Stage 3:
- Capability
- Research and Development (R&D)
- Industrial
- Commercial
- Financial.
- The Option clearly displays positive open language throughout.
- All descriptions contained within the Option are comprehensive, understandable and clear.

Types of Options

There are two types of Options:

DEP-E08
D Def RP-S08.

DEP-E08

E08 Options are raised by DECs to cover:

Equipment Programme Plan (EPP) - the purchase of procurement.
Equipment Support Plan (ESP) - the costs associated with supporting:
- New equipment.
- Existing equipment in Years 5 to 10.

D Def RP-S08

S08 Options are raised by single service RPs or RP Centre to cover:

Support areas programmed by Front Line Commands (FLCs) – ESP, Years 1 to 4.
Any Non-Equipment Investment Programme (NEIP).
Top Level Budget (TLB) operating costs.

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