Select Committee · Public Accounts Committee

Improving the performance of defence contracts

Status: Closed Opened: 9 Jun 2021 Closed: 5 Aug 2021 8 recommendations 16 conclusions 1 report

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 billion over budget) and the … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Twenty-Second - Improving the performance of major defence … HC 185 3 Nov 2021 24 Responded

Recommendations & Conclusions

3 items
5 Recommendation Twenty-Second - Improving the performan… Accepted in Part

The Department will not secure a step change in performance until it can recruit and...

The Department will not secure a step change in performance until it can recruit and retain the highly skilled staff that it requires. The Department continues to suffer from skills shortages in key areas critical to effective contract and programme management. It relies on expensive temporary contractors to deliver many … Read more

Government response AI summary
The government agrees with the recommendation and outlines actions to address skill gaps and improve retention. These include building on existing leadership training, recruiting and retaining specialist resources, introducing specific talent management for SROs, and investigating options to improve SRO continuity.
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HM Treasury
21 Conclusion Twenty-Second - Improving the performan… Accepted in Part

Having the right people in place to manage suppliers is essential to ensure programme progress...

Having the right people in place to manage suppliers is essential to ensure programme progress and to hold suppliers to account. However, many of the Department’s programmes were reliant on temporary contractors to fill these roles, especially in the Department’s digital projects and programmes. In two of these—New Style of … Read more

Government response AI summary
The government acknowledges the competitive market for project delivery skills and outlines plans to enhance recruitment and retention of expert resources, including building on existing training programs. It is introducing specific talent and career management for SROs and investigating options to reduce SRO turnover.
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HM Treasury
22 Conclusion Twenty-Second - Improving the performan… Accepted in Part

The Department is also reliant on contractors on some of its maritime programmes, where between...

The Department is also reliant on contractors on some of its maritime programmes, where between one sixth and one third of staff working on the Spearfish, Type 31e frigate and Fleet Solid Support programme teams are contractors. The Department puts this down to the burden of several major programmes being … Read more

Government response AI summary
The government acknowledges the competitive market for project delivery skills and describes plans to build on existing training programs to recruit and retain expert resources. It is introducing specific talent management for SROs and investigating options like minimum tour lengths, fixed term contracts, and retention …
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HM Treasury

Oral evidence sessions

1 session
Date Witnesses
12 Jul 2021 Andrew Forzani · Ministry of Defence, David Williams · Daily Mail, Sir Simon Bollom · Ministry of Defence View ↗

Who gave evidence

3 witnesses
WitnessOrganisationSessions
Andrew Forzani · Director General of Commercial Ministry of Defence 1
David Williams · Journalist Daily Mail 1
Sir Simon Bollom · Chief Executive of Defence Equipment and Support … Ministry of Defence 1

Correspondence

2 letters
DateDirectionTitle
21 Sep 2021 Correspondence from David Williams, Permanent Secretary, Ministry of Defence, r…
9 Sep 2021 Correspondence from Andrew Forzani Director General, COMRCL Ministry of Defence…