Improving the performance of defence contracts

Public Accounts Committee Closed Inquiry
Opened: 9 Jun 2021 Closed: 5 Aug 2021 Parliament page
The National Audit Office and the Public Accounts Committee regularly report on the delays and cost overruns, across many significant Ministry of Defence (MoD) equipment procurement programmes, that have been “eroding our national defence and security for years”. Specific recent examples include boats 4-7 of the Astute attack submarine (£1 … Read more
8 Recommendations
16 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 5 events
21 Jan
2022
Report published
3 Nov
2021
Report published
21 Sep
2021
Correspondence
9 Sep
2021
Correspondence
12 Jul
2021
Oral evidence
Oral evidence sessions 1 session
12 Jul 2021
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Improving the performance of defence contracts
Andrew Forzani · Ministry of Defence David Williams · Daily Mail Sir Simon Bollom · Ministry of Defence
Title HC No. Published Items Response
Twenty-Second - Improving the performance of major defence equip… HC 185 3 Nov 2021 24 Responded
Recommendations & Conclusions
6 results
Clear
4 Recommendation Not Addressed
Twenty-Second - Improving the perf…
The Department continually fails to learn from its mistakes.
The Department continually fails to learn from its mistakes. The Department has been delivering equipment programmes for decades and has overseen many expensive failures. There have been at least 13 formal reviews of defence procurement policy over the last 35 … Read more
Government Response
The government describes existing systems for learning from experience (LfE) and ongoing efforts to standardise LfE information, along with established Strategic Partnering and Category Management Programmes and an Acquisition and Approvals Transformation Programme. However, it does not commit to providing the specific clear plan requested by the Committee.
HM Treasury
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1 Conclusion Not Addressed
Twenty-Second - Improving the perf…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the Department) and Defence Equipment & Support on improving the performance of major equipment contracts.1
Government Response
The government's response is a boilerplate introductory statement confirming it is responding to the Committee's report, without addressing any specific content.
HM Treasury
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8 Conclusion Not Addressed
Twenty-Second - Improving the perf…
We questioned the Department in detail on the Ajax programme to procure armoured reconnaissance vehicles...
We questioned the Department in detail on the Ajax programme to procure armoured reconnaissance vehicles for the Army. In 2014, the Department agreed a deal with General Dynamics United Kingdom (GDUK) to procure 589 vehicles - down from an initial … Read more
Government Response
The government's response is boilerplate text acknowledging its report and listing other relevant reports, but it does not address the Committee's detailed observations and concerns regarding the Ajax programme.
HM Treasury
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9 Conclusion
Twenty-Second - Improving the perf…
The Department had told the NAO that it considered initial operating capability achievable by the...
The Department had told the NAO that it considered initial operating capability achievable by the end of June 2021, but in our public evidence session, witnesses could not tell us when some sort of capability will be secured, even in … Read more
HM Treasury
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13 Recommendation
Twenty-Second - Improving the perf…
Across the 20 projects and programmes examined by the NAO, 14 are being procured partly...
Across the 20 projects and programmes examined by the NAO, 14 are being procured partly or wholly non-competitively, despite the fact that ‘competition by default’ has been departmental policy for nearly a decade. In only four of these cases was … Read more
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16 Conclusion
Twenty-Second - Improving the perf…
The Department has ambitions to improve delivery performance through use of ‘agile’ procurement—delivery methods where...
The Department has ambitions to improve delivery performance through use of ‘agile’ procurement—delivery methods where the requirement and solutions are developed collaboratively in discrete steps with flexibility around requirements, cost and schedule. However, delivery teams found that agile approaches were … Read more
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Government Response AI assessment · 21 of 8 classified
Accepted 14
Accepted in Part 3
Acknowledged 1
Not Addressed 3
Total 8 recs + 16 conclusions
Correspondence 2 letters
21 Sep 2021 Correspondence from David Williams, Permanent Secretary, Ministry of Defence, re follow up to 12 July 2021 PAC oral evidence session: Improving the performance of major equipment contracts, dated 14 September 2021
Parliament page
9 Sep 2021 Correspondence from Andrew Forzani Director General, COMRCL Ministry of Defence, re Correction related to “Improving the performance of defence contractors, HC185 dated 12 July 2021 - Fixed Priced Contracts, dated 2 August 2021
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