Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The Department will not secure a step change in performance until it can recruit and...
Conclusion
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 of its programmes. We note that the cost of staff is small in comparison to the cost of the programmes the Department delivers. It pointed to constraints on its ability to recruit the right people who would help to deliver programmes to time and budget, but acknowledges that the question of paying people appropriately for their skills is being considered across government. However, we were surprised that the Department was so relaxed about losing skilled people to the private sector. We are concerned about the deliberate policy of regularly changing SROs and other senior staff working in programme teams, with individuals in post for a fraction of the contract lifecycle. Retaining and developing talent over substantive programme phases would help to stabilise delivery, with promotion linked to performance. The Department is still not doing enough to make sure that the armed forces treat the role of SRO as seriously as operational deployments. Examples of ‘double touring’ SROs on major programmes are welcome, but the Department needs to do more to prioritise and incentivise programme delivery among this cadre of senior officers. Recommendation: The Department and HM Treasury should write to the committee within the next six months setting out how together they will address the gap in skills that it needs for effective contract and supplier management; making the Department competitive in specialist labour markets; and improving retention. In its letter, the Department should also set out what more it will do to get greater continuity in the SRO role, including where feasible a single SRO for the lifetime of a project, and to recognise the role’s funda
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2022 5.2 The department acknowledges that the there is a highly competitive UK market for project delivery skills ranging from experienced project managers, project controls, commercial, and engineers and this is compounded by national shortages and a large UK infrastructure portfolio of work where both public and private sector organisations are in competition for this talent. Noting these challenges, the department has given some freedoms to the professional delivery organisations such as DE&S and the Submarine Delivery Agency (SDA) to help them compete in a demanding UK market for these highly sought-after skills. 5.3 Regarding Project and Contract leadership skills the department will build on its successful participation in the cross-government Cabinet Office sponsored Major Project Leadership Academy and Cabinet Office Contract Management training programme and its ongoing work to recruit and retain expert and specialist resource. 5.4 The department recognises the need to balance time in post for SROs and the need to match leadership with the phase of the project. The department is fully committed to Cabinet Office ambition of ensuring SROs spend at least 50% of their time on their GMPP projects and are working across Defence to increase capacity. The department’s Project Delivery function is introducing specific talent and career management for MOD SROs, across both military and civilian postings, to ensure that the right SRO is in place for the right amount of time. The department is investigating a range of options to reduce SRO turnover, including minimum tour lengths aligned to the delivery of key project milestones, rank-range postings, fixed term contracts, retention allowances and the creation of a talent pool.