Source · Select Committees · Public Accounts Committee
Recommendation 10
10
The Department has spent nearly £4 billion of its budget by March 2021—including payments to...
Conclusion
The Department has spent nearly £4 billion of its budget by March 2021—including payments to GDUK of £3.1 billion—out of budgeted whole-life costs of £5.5 billion.26 It has so far received 14 vehicles, 2% of its contractual fleet requirement.27 Witnesses told us they were not prepared to outline the magnitude of potential losses to taxpayers in the event of contract termination, but told us that there are strong provisions in the contract and that it has imposed liquidated damages on GDUK for its failures.28 19 C&AG’s report, para 2.8 20 C&AG’s report, Figure 6 21 Qq 29–30 22 Minister for Defence Procurement, Statement on the Armoured Cavalry Programme (Ajax) Programme, 6 September 2021, HCWS260 23 Qq 37–47 24 Qq 37, 47 25 Minister for Defence Procurement, Statement on the Armoured Cavalry Programme (Ajax) Programme, 6 September 2021, HCWS260. 26 Qq 57–58 27 Q 5 28 Qq 56–57 12 Improving the performance of major defence equipment contracts Monitoring value for money