Source · Select Committees · Public Accounts Committee
Recommendation 18
18
The same lessons have been identified again and again across programmes, including underestimation of programme...
Conclusion
The same lessons have been identified again and again across programmes, including underestimation of programme complexity at the design stage, users being unclear about their requirements, the need to have sufficient resources and skills in place, and shortcomings in delivering GFA.43 The Department only established a central register of LFE for the first time in December 2020. The Department told us that it recognises LFE as an area for improvement and pointed to the complexity of the landscape, which spans four Commands, three delivery agents and several operating centres.44 Initiatives to improve delivery
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 Although the department agrees with the Committee’s recommendation it does not agree with the Committee’s conclusion. The department has a track record of delivering savings; the underlying cost of the Defence Equipment & Support (DE&S) managed element of the Equipment Plan has reduced by £5.4 billion since 2015, excluding Foreign Exchange or Front-Line Customer requirement changes. £5.7 billion of independently assured efficiencies have also been realised by DE&S since 2015. 4.3 Systems are in place to identify and share lessons as programmes are delivered and the department is working hard to ensure that Learning from Experience (LfE) information becomes increasingly standardised. The National Audit Office (NAO) report specifically commented favourably on some of the improvements that the department has made including the use of industry leading tools and processes for managing project delivery. DE&S, the MOD’s principal project Delivery Agent, has recently successfully achieved ISO9001 certification and the independent national certifying body commented specifically on the strong business information that drives performance throughout the portfolio and the continuous improvements that the organisation undertakes. 4.4 The most complex programmes are subject to regular deep dives by the department's most senior staff, providing support and challenge to SROs. MOD executives also regularly meet with industry chief executives of some of the most demanding projects. 4.5 In 2018, the department established a Strategic Partnering Programme (SPP) which is based on good practice principles, transparency and sharing of data and lessons between supplier and commissioner. Category management, also mentioned positively in the NAO report, is in place to support the MOD to deliver £628 million of cashable savings through more efficient ways of working. 4.6 The department is also implementing an Acquisition and Approvals Transformation Programme to improve programme delivery and embed continuous improvement. Proportionate, tailored, risk-based approaches to acquisition are being developed to drive increased pace while maintaining rigour in investment decision-making.