Source · Select Committees · Public Accounts Committee

Recommendation 22

22

The Department is also reliant on contractors on some of its maritime programmes, where between...

Conclusion
The Department is also reliant on contractors on some of its maritime programmes, where between one sixth and one third of staff working on the Spearfish, Type 31e frigate and Fleet Solid Support programme teams are contractors. The Department puts this down to the burden of several major programmes being launched concurrently. It explained that it can draw on framework contracts for specialist skills where needed and that it is committed to reducing spend on temporary contractors.52 We asked the Department whether civil service pay rates are a limiting factor in keeping people in role. It told us that pay for specialist roles is a live issue across government, including in the project delivery, digital and commercial professions. It explained that while the Department has flexibility in setting pay in the market for fixed-term appointments, there is less flexibility for civil servants progressing into senior roles.53 Senior Responsible Owners
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.