Recommendation 10

In 2019, the Department ended its 10-year contract with its Strategic Business Partner, led by Capita, five years early because the contract was not delivering expected savings and improvements in running the DIO.12 This created a gap in the skills and capabilities that the Department needs. It is seeking to build in-house capabilities to fill this gap but, at present, it remains reliant on contractors. Overall, the Department has 168 staff working on the strategic management of the defence estate.13 By 2023–24 the Department hopes 7 Qq 6 to 9 and 12; C&AG’s Report, para 8 8 Qq 6 to 9; C&AG’s Report, para 4 9 Qq 14, 76, 85 and 88; C&AG’s Report, para 3.15 10 Q 80; C&AG’s Report, paras 2.15 to 2.20 11 Q 6; C&AG’s Report, paras 10 to 12 12 Q 35; C&AG’s Report, para 2.4 13 Letter dated 19 July 2021 from Permanent Secretary to the Committee 10 Optimising the defence estate to fill all 91 core delivery posts, such as quantity surveyors and project managers, with permanent civil servants. However, it has already fallen behind target, having just 53 permanent staff in post in March 2021, compared with its target of 61 at that point.14