L-077 Assessing the Risk and the Cost Benefits Associated with the Introduction of Insensitive Munitions, Part 2: Cost Benefit Analysis - Final Report

NIMIC organised a two-part workshop under the title "Assessing the Risk and the Cost Benefits associated with the Introduction of IM". The second part of the workshop entitled "Cost Benefit Analysis of the Introduction of Insensitive Munitions into Service" was held at Rimforsa Kursgård, Rimforsa, Sweden from 11th to 15th June 2001. The main objective of the workshop was to determine the costs and associated benefits for each stage of the life cycle of an IM/MURAT munition in an existing or new weapons system (compared with a non-IM system). The workshop brought together experts from government (safety authorities, programme managers, military staff, vulnerability/lethality community) and industries (designers, manufacturers, safety managers, etc.) to identify the parameters required to evaluate the true cost of a munition during its entire service life and to define a cost-benefit analysis methodology. Insensitive Munition benefits are not limited to financial ones. Other benefits such as operational, political, H & S and environmental benefits can also be demonstrated. The workshop participants developed tables to promote IM benefits by addressing the concerns of each stakeholder involved in the acquisition process.

The objectives were to:

• Propose a Cost-Benefit Analysis Methodology
• Define a methodology to promote the operational, political, H&S and environmental benefits to the different stakeholders
• Identify the life cycle cost parameters influenced by IM
• Define the benefits of using IM when assessing the effects of accidents or attacks on platforms, logistic nodes or asset concentrations
• Identify the most cost efficient phase at which to introduce IM
• Define the requirements of a CBA model to support the proposed CBA methodology

· Make recommendations on the way ahead

The participants were then divided into groups to focus on the following aspects:

• Group A: life cycle costs of IM versus non-IM munitions;
• Group B: intrinsic benefits of insensitive munitions (Hazard Classification reduction, surveillance and ageing);
• Group C: potential benefits of insensitive munitions (reduced vulnerability of platforms, logistic nodes and asset concentrations).

This report consists of the conclusions reached by each of the five discussion groups into which the workshop participants were divided (Annexes A-E). Those discussions were constrained by the time available for them. This synopsis section is intended to summarise the conclusions and to amplify them, when necessary, by additional NIMIC commentaries. Sources of additional data include the conclusions from the risk part of the workshop, papers produced for this workshop and discussions on the workshop held in the NIMIC, consistent with its role to analyse and to add value to information. The commentaries are offered as a basis for planning a way forward and conclude with several suggested topics for further studies. The stakeholder tables of concerns prepared by group E have been completed by the NIMIC staff and are available in Annex H.