Eighth Report - Improving Defence Inventory Management
Select Committee
Public Accounts Committee
HC 66
19 January 2024
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the eighth report from Session 2023-24 · published 2 Apr 2024
Recommendations & Conclusions
3 results
7
Conclusion
Acknowledged
MoD inventory management suffers from long-standing issues with fragmented legacy IT systems
Conclusion
MoD’s inventory management has faced long-standing issues with its many legacy IT systems, which have limited functionality and reinforce the fragmentation of its inventory management. Each Command has its own core inventory management system, and there are other systems used …
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Government Response Summary
The government agrees with the committee's observations and will provide an update within six months by July 2024. It also provided corrected data on inventory stockpile holdings, claiming more success in managing them down than previously reported.
HM Treasury
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9
Conclusion
Acknowledged
MoD's data gaps persist and major contract lacked competitive tendering process.
Conclusion
However, we do not see how this step alone will address the existing gaps in the MoD’s data. For instance, when new systems were introduced in DE&S’s central warehouses through the Team Leidos contract, DE&S stated that it had to …
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Government Response Summary
The government agrees with the committee's observations and will provide an update within six months by July 2024. It primarily provides corrected inventory stockpile data to demonstrate better management than reported, rather than directly addressing concerns about data gaps or non-competitive contracts.
HM Treasury
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13
Conclusion
Acknowledged
Team Leidos contract for warehousing delivered £403 million in financial efficiencies.
Conclusion
The MoD outsourced its central warehousing and the procurement of some of its commodities—food, clothing, general and medical supplies—to a consortium under the Team Leidos banner28 through the Logistics and Commodities Services Transformation (LCST) contract in 2015. Managed through DE&S, …
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Government Response Summary
The government acknowledges the committee's observation regarding the successful LCST contract and states that lessons learned have been shared with the Future Defence Support Services programme and will be forwarded to the Committee with confirmation on plans to implement.
HM Treasury
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