Source · Select Committees · Public Accounts Committee

Recommendation 21

21

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

Conclusion
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 IT (Deployed) and Morpheus—temporary contractors made up 79% and 58% of posts respectively.49 Under the Department’s previous information strategy, it took on more responsibility for the direct management of contractors, but for the three digital programmes the NAO examined, the Department has failed to recruit people with the right skills and experience to do this effectively.50 The Department told us that ensuring the right skills available to programmes is a challenge shared across government as well as among suppliers. The Department envisages recruiting around 200 additional digital specialists to boost its capability in these areas.51
Government Response Not Addressed
HM Government Not Addressed
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.