The objective of the PPEM008 project is to demonstrate that an intelligent agent-based vehicle management system for UAVs would offer significant advantages over conventional management approaches. It was decided that these issues should be explored using simulation test bed as a precursor to evaluation using test rigs and ultimately UAVs. An integrated power systems management model (IPS) had been developed by Rolls-Royce and was identified as forming the core of the simulation test bed. However, the focus of the IPS model was the realistic play out of demands placed on a model of engine operation. Our requirement was for a test bed that enabled us to simulate both the flight behaviour and the power system behaviour of a UAV. Thus a major activity for Year 1 has been the development of the test bed, together with an identification of the research issues to be explored in Years 2 and 3. One of the initial research areas identified was the need for methodologies and reference architectures to guide the development of agent-based systems in a particular domain, such as vehicle and mission management for UAVs. Test bed development is being guided by a previously developed reference architecture for tactical reasoning with the intent of identifying the initial requirements for a reference architecture for UAV management.