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=== CSP / LEP / Challenger 3 === [[File:Challenger 2-Megatron MOD 45161557.jpg|thumb|Challenger 2 TES "Megatron", the British Theatre Entry Standard reference vehicle, at Bovington fitted with a Mobile Camouflage System (MCS) in 2016]] [[File:QRH Challenger 2s in Estonia MOD 45167094.jpg|thumb|QRH Challenger 2 fitted with dozer blade in Estonia, 2020]] In 2005, the MoD recognised a need for a Capability Sustainment Programme (CSP) to extend the service life of the Challenger 2 into the mid-2030s and upgrade its mobility, lethality and survivability.<ref name="DIS2005">{{cite book |title=Defence Industrial Strategy: Defence White Paper |date=2005 |publisher=[[The Stationery Office]] |location=[[London]] |isbn=0-10-166972-0 |page=79 |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/272203/6697.pdf |access-date=29 March 2021}}</ref> The CSP was planned to be complete by 2020 and was to combine all the upgrades from CLIP, including the fitting of a 120 mm smoothbore gun.<ref name="KRHRJ">{{cite book |title=The King's Royal Hussars: Regimental Journal 2007 |url=https://www.krh.org.uk/uploads/4/5/0/9/45090939/krh_2007.pdf |access-date=29 March 2021 |archive-date=25 July 2021 |archive-url=https://web.archive.org/web/20210725154456/https://www.krh.org.uk/uploads/4/5/0/9/45090939/krh_2007.pdf }}</ref><ref name="CSDP">{{cite book |title=Case Studies in Defence Procurement and Logistics |date=2014 |page=236 |url=https://research-repository.griffith.edu.au/bitstream/handle/10072/63083/97211_1.pdf?sequence=1&isAllowed=y |access-date=29 March 2021}}</ref> By 2014, the CSP programme had been replaced by the Life Extension Programme (LEP) which shared a similar scope of replacing obsolete components and extending the tank's service life from 2025 to 2035, however the 120 mm smoothbore gun had seemingly been abandoned.<ref name="2014LEP">{{cite web |url=http://www.janes.com/article/40057/dvd-2014-uk-challenger-2-lep-numbers-may-drop |title=DVD 2014: UK Challenger 2 LEP numbers may drop |publisher=Janes.com |access-date=30 October 2014 |archive-url=https://web.archive.org/web/20141030150006/http://www.janes.com/article/40057/dvd-2014-uk-challenger-2-lep-numbers-may-drop |archive-date=30 October 2014 |url-status=live}}</ref><ref>{{cite web |url=https://rusi.org/event/dynamic-security-threats-and-british-army |title=Dynamic Security Threats and the British Army - Presentation to RUSI by Sir Nick Carter CGS of the British Army |access-date=22 March 2018 |archive-url=https://web.archive.org/web/20180329141808/https://rusi.org/event/dynamic-security-threats-and-british-army |archive-date=29 March 2018 |url-status=live}}</ref><ref>{{cite web |title=The Defence Equipment Plan 2017 |access-date=7 March 2018 |url=https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/677999/20180125-EP17_Final.pdf}}</ref> In 2015, the British Army provided an insight into the scope of the LEP, dividing it into four key areas, namely:<ref>{{cite web |url=http://www.royaltankregiment.com/Uploads/Files/en-GB/RAC_Newsletter_Dec_2015.PDF |title=Archived copy of RTR December 2015 Newsletter |access-date=5 May 2016 |archive-url=https://web.archive.org/web/20161105073703/http://www.royaltankregiment.com/Uploads/Files/en-GB/RAC_Newsletter_Dec_2015.PDF |archive-date=5 November 2016}}</ref> * Surveillance and target acquisition: Upgrades to the commander's primary sight and gunner's primary sight, as well as the replacement of the thermal observation and gunnery sights (TOGS) with third-generation thermal imaging. * Weapon control system: Upgrades to the fire control computer, fire control panel and gun processing unit. * Mobility: Upgrades including third-generation hydrogas suspension, improved air filtration, CV-12 common rail fuel injection, transmission and cooling. * Electronic architecture: Upgrades to the gunner's control handles, video distribution architecture, generic vehicle architecture compliant interfaces, increased onboard processing and improved human machine interface. The MoD also began assessing [[active protection system]]s (APS) on the Challenger 2, including [[MUSS (countermeasure)|MUSS]] and Rheinmetall's ROSY Rapid Obscurant System.<ref>{{cite web |url=https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/543458/20160801-Letter_to_Maj_Gen_Gaunt_from_CGS.pdf |title=Armour MBT 2025 programme: SRO appointment letter |publisher=UK Ministry of Defence |access-date=3 August 2016 |archive-url=https://web.archive.org/web/20160919021931/https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/543458/20160801-Letter_to_Maj_Gen_Gaunt_from_CGS.pdf |archive-date=19 September 2016 |url-status=live}}</ref><ref>{{cite web |url=https://www.gov.uk/government/news/active-protection-for-our-armed-forces |title=Active Protection for our Armed Forces |publisher=DSTL / UK Government |date=5 July 2016 |access-date=15 March 2018 |archive-url=https://web.archive.org/web/20170730154359/https://www.gov.uk/government/news/active-protection-for-our-armed-forces |archive-date=30 July 2017 |url-status=live}}</ref><ref>{{cite web |url=http://www.janes.com/article/75743/challenger-2-trialled-with-rosy-iron-fist-aps |title=Challenger 2 trialled with ROSY, Iron Fist APS |publisher=Jane's International Defence Review |date=16 November 2017 |access-date=15 March 2018 |archive-url=https://web.archive.org/web/20181113125635/https://www.janes.com/article/75743/challenger-2-trialled-with-rosy-iron-fist-aps |archive-date=13 November 2018 }}</ref> In August 2016, the MoD awarded assessment phase contracts to several companies for the Life Extension Programme. These included Team Challenger 2 (a consortium led by BAE Systems and including [[General Dynamics UK]]),<ref name="TeamCR2">{{cite web |title=BAE Systems' Team Challenger 2 awarded Assessment Phase for Life Extension Project |url=https://www.baesystems.com/en-uk/article/bae-systems--team-challenger--2-awarded-assessment-phase-for-life-extension-project |access-date=29 March 2021 |website=BAE Systems |date=22 December 2016}}</ref> [[CMI Defence]] and [[Ricardo plc]], [[Rheinmetall]] and [[Lockheed Martin UK]].<ref name="assessmentphase">{{cite news |title=UK Announces Life Extension Project |url=https://battle-updates.com/uk-mod-announces-challenger-2-life-extension-projectlep-by-julian-nettlefold/ |access-date=29 March 2021 |work=Battlespace |date=22 August 2016}}</ref><ref name="Final bids in for Challenger 2 LEP">{{cite web |url=https://janes.ihs.com/Janes/Display/1761650 |title=Several contenders line up for Challenger 2 life extension programme |publisher=IHS Jane's |date=11 August 2016 |access-date=14 November 2016}}</ref> In November, the MoD shortlisted two teams led by BAE Systems and Rheinmetall to compete for the LEP which was then estimated to be worth Β£650 million ($802 million).<ref name="Field Narrows for UK Battle Tank Modernization">{{cite web |url=http://www.defensenews.com/articles/field-narrows-for-uk-battle-tank-modernization |title=Field Narrows for UK Battle Tank Modernization |publisher=Defense News Andrew Chute |date=2 November 2016 |access-date=14 November 2016}}</ref><ref name="Challenger 2 LEP contracts due in December">{{cite web |url=https://janes.ihs.com/Janes/Display/1788580 |title=Challenger 2 LEP contracts due in December |publisher=IHS Jane's |date=14 November 2016 |access-date=14 November 2016}}</ref><ref>{{cite web |url=https://www.gov.uk/government/news/mod-awards-46m-to-start-challenger-2-tank-life-extension-project-competition |title=MOD awards Β£46M to start Challenger 2 Tank life extension project competition |publisher=gov.uk |access-date=22 December 2016 |archive-url=https://web.archive.org/web/20161223065857/https://www.gov.uk/government/news/mod-awards-46m-to-start-challenger-2-tank-life-extension-project-competition |archive-date=23 December 2016 |url-status=live}}</ref> In October 2018, BAE Systems unveiled its proposed Challenger 2 LEP technology demonstrator, the "Black Night".<ref name="bk1">{{cite news |last1=Allison |first1=George |title=BAE unveils 'Black Night' β the first fully-upgraded Challenger 2 tank |url=https://ukdefencejournal.org.uk/bae-unveils-black-knight-the-first-fully-upgraded-challenger-2-tank/ |access-date=29 March 2021 |work=[[UK Defence Journal]] |date=8 October 2018}}</ref> The new improvements included a [[Safran]] PASEO commander's sight, [[Leonardo S.p.A.|Leonardo]] thermal imager for the gunner and Leonardo DNVS 4 night sight. The turret also received modifications to improve the speed of traverse and to provide greater space as well as regenerative braking to generate and store power. Other enhancements included a laser warning system and an active protection system.<ref name="bk1"/><ref>{{cite news |title=BAE Systems unveils Black Night Challenger 2 MBT for British Army |url=https://www.army-technology.com/news/bae-black-night-challenger-2-army/ |access-date=29 March 2021 |work=Army Technology |date=5 October 2018}}</ref> Months later, in January 2019, Rheinmetall unveiled its proposal which included the development of a completely new turret with fully digital electronic architecture, day and night sights for the commander and gunner, and a Rheinmetall L55 120{{spaces}}mm smoothbore gun. Whilst a more substantial upgrade than Black Night, the turret was developed on Rheinmetall's initiative and was not funded by the UK MoD, nor was it part of the MoD's LEP requirements.<ref name="Rheinmetall, BAE Systems launch joint venture for military vehicles.">{{Cite web |url=https://www.defensenews.com/global/europe/2019/01/21/rheinmetall-bae-systems-launch-joint-venture-for-military-vehicles/ |title=Rheinmetall, BAE Systems launch joint venture for military vehicles |date=21 January 2019 |publisher=Defense News |access-date=25 January 2019}}</ref><ref name="BAE Systems sells control of vehicles arm to Rheinmetall.">{{Cite news |url=https://www.bbc.co.uk/news/business-46946413 |title=BAE Systems sells control of vehicles arm to Rheinmetall |publisher=BBC News |date=21 January 2019 |access-date=25 January 2019 |archive-url=https://web.archive.org/web/20190124073058/https://www.bbc.co.uk/news/business-46946413 |archive-date=24 January 2019 |url-status=live}}</ref><ref name="IAV 2019: Rheinmetall unveils proposal for Challenger 2 LEP.">{{Cite web |url=https://janes.ihs.com/Janes/Display/FG_1520905-JDW |title=IAV 2019: Rheinmetall unveils proposal for Challenger 2 LEP |publisher=Jane's JDW |access-date=25 January 2019 |url-access=subscription}}</ref> In June 2019, BAE Systems and Rheinmetall formed a joint venture company, based in the UK, named [[Rheinmetall BAE Systems Land]] (RBSL).<ref name="RBSL Home">{{cite web |url=https://rbsl.com/ |title=RBSL website home page for navigation |publisher=RBSL |access-date=14 January 2021}}</ref> Despite the merger, the company was still expected to present two separate proposals for the LEP contract,<ref>{{cite news |title=Challenger 2 Upgrade Decision Will Not Be Made Until 2021 |url=https://www.forces.net/news/technology/challenger-2-upgrade-decision-will-not-be-made-until-2021 |access-date=29 March 2021 |work=Forces News |date=1 July 2019}}</ref> however, at [[DSEI]] 2019, RBSL instead opted to only showcase the Rheinmetall proposal.<ref>{{cite news |title=DSEI 2019: RBSL's Challenger 2 LEP contender comes out in the open |url=https://www.janes.com/defence-news/news-detail/dsei-2019-rbsls-challenger-2-lep-contender-comes-out-in-the-open |access-date=29 March 2021 |work=Forces News |date=12 September 2019}}</ref> In October 2020, the MoD argued against buying a new main battle tank from overseas instead of pursuing the Challenger 2 LEP, stating that an upgraded Challenger 2 would be "comparable β and in certain areas superior" to a Leopard 2 or Abrams.<ref>{{cite web |url=https://committees.parliament.uk/writtenevidence/12523/pdf/ |title=Written evidence submitted by the Ministry of Defence HCDC Inquiry: Progress in delivering the British Army's armoured vehicle |author=<!--Not stated--> |date=6 October 2020 |website=committees.parliament.uk/ |publisher=House of Commons Defence Committee |access-date=30 October 2020 |quote=The Challenger 2 Life Extension Project will be the first significant upgrade since it entered service in 1998 ... it will be comparable ... in certain areas superior β to the latest version of Leopard 2 and Abrams.}}</ref> On 22 March 2021, the MoD published its long-awaited [[command paper]], ''[[Defence in a Competitive Age]]'', which confirmed the British Army's plans to upgrade 148 Challenger 2 tanks and designate them [[Challenger 3]].<ref name="DIACAb">{{cite book |date=March 2021 |title=Defence in a Competitive Age |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/971859/_CP_411__-_Defence_in_a_competitive_age.pdf |access-date=22 March 2021 |publisher=Ministry of Defence |isbn=978-1-5286-2462-6}}</ref><ref name="FSTBA">{{cite news |title=Future Soldier: Transforming the British Army |url=https://www.army.mod.uk/media/11826/20210322-army-future_soldier-publication-final.pdf |access-date=28 March 2021 |website=Ministry of Defence |date=22 March 2021}}</ref> The MoD confirmed the contract with RBSL had been signed, valued at Β£800 million (US$1 billion), on 7 May 2021. Rheinmetall's more extensive upgrade proposal, including the new 120 mm smoothbore gun, had been accepted. The [[initial operating capability]] for the upgraded tanks is expected by 2027, with full operation capability expected to be declared by 2030.<ref name=dnci>{{citation |url=https://www.defensenews.com/industry/2021/05/07/britain-awards-1-billion-contract-to-upgrade-challenger-2-tanks/ |title=Britain awards $1 billion contract to upgrade Challenger 2 tanks |work=[[Defense News]] |date=7 May 2021}}</ref>
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