5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 5.2 As with any large portfolio it was initially planned to use the best knowledge and assumptions available at the time. Several factors influenced the reduction in net savings these included 9 significant site retentions (7 in DEO and 2 across the wider estate) which were needed to support military capability and were then not available for disposal. This has reduced the level of savings delivered when compared to the original estimates. As the portfolio estimates mature, the department expects to make net savings of £0.65 billion through DEO disposals over the next 25 years. Gross savings are £2.7 billion in running costs and £2.3 billion of savings expected as a result of reductions in future maintenance and life-cycle replacement costs. 5.3 A new Delivery, Commercial and Procurement strategy will be implemented in Summer 2022 which will deliver key benefits from early engagement with industry using a two-stage procurement mechanism through the design and build phases in line with industry best practice. This strategy will provide the department greater confidence and accuracy in project costings due to the completion of detailed designs and site master plans. 5.4 The department will also work with industry partners and utilise reference class data to ensure the cost of site preparation to support disposals is understood, matured, and factored into project planning and estimating. Progress on this will be provided in the annual update to the Committee.