Source · Select Committees · Public Accounts Committee
Recommendation 30
30
We were interested to understand why information about project performance does not always seem to...
Conclusion
We were interested to understand why information about project performance does not always seem to flow freely and openly through the Department. The Permanent Secretary told us about the Ajax programme’s Health and Safety Report’s identification 57 C&AG’s report, para 3.3 58 Q116; C&AG’s report, para 3.17 59 Qq 149, 116 60 Q49 61 Qq 38–44; Letter to the Committee from the Permanent Secretary, 21 March 2022. 16 Ministry of Defence Equipment Plan 2021–31 of “a number of serious failings in which information around the project was flowing between constituent parts of the organisation and up to senior decision makers”.62 This failure appears to have even affected the open flow of information to Ministers, who have now called for a judicial inquiry into what officials told them. We noted that the Permanent Secretary is recusing himself from the terms of reference of the inquiry as he was involved in the decision to approve the contract for Ajax when he was in the Department some years ago.63
Government Response
Not Addressed
HM Government
Not Addressed
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 6.2 The department monitors progress of National Audit Office’s (NAO’s) Value for Money recommendations including Equipment Plan report recommendations. The status of the recommendations is reviewed annually. A summary of progress made on NAO and PAC recommendations is provided to the department’s Audit Assurance and Risk Committee (DARAC) on a quarterly basis. The department provided an update on the Equipment Plan PAC recommendations through refreshed Treasury Minutes published on 9 June 2022. One recommendation remains in progress under the Defence Equipment Plan 2020. 6.3 The department’s Acquisition Reform agenda includes work to promote critical acquisition behaviours and culture. This includes a ‘one team’ approach encouraging greater transparency on performance across organisational boundaries; applying judgement to tailor approaches based on ‘appropriate risk’ in support of timely evidence-based decisions; and embedding a ‘learning culture’. 6.4 Significant progress has been made in the use of management information, with data dashboards providing a single version of the truth being shared widely. 6.5 The department is forging closer links with industry through the Supplier Partnering Programme, to improve schedule alignment, risk and dependency management and management information sharing. 6.6 Further detail of progress with the recommendations and how this translates to changes to the plan will be provided as requested in the Autumn.