Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
Rapid innovation requires quicker procurement and shorter equipment lifecycles for continued relevance.
Conclusion
The speed of innovation seen in Ukraine has highlighted that quicker procurement is important to ensure that new equipment is not already out of date by the time the armed forces deploy it.27 The Department explained that this requires a change in mindset. It will become more common for programmes to end sooner, or even be abandoned, because the pace of innovation and the new, higher-threat environment, means they are no longer relevant. It also means that equipment will have a shorter shelf life than the Armed Forces have been used to, because the Department will need to update capabilities continually to meet evolving requirements.28 Improving defence procurement
Government Response Summary
The government agrees with the committee's observation that quicker and more adaptable procurement is vital, confirming its ongoing reforms, including the NAD Group and segmented approach, are designed to address this.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2026 3.2 The department’s procurement reforms are building on previous initiatives and will go further. Teams delivering the national ‘arsenal’, the defence industrial strategy and end to end acquisition have been brought together as the National Armaments Director (NAD) Group, to enable better ways of working and empower greater collaboration across Defence. 3.3 A new segmented approach to procurement will enable tailoring of procurement processes to the type of capability, supplier and risk involved, with timescale targets as key measures of progress. 3.4 Portfolio-driven acquisition will optimise delivery, bringing together projects, programmes and services with a clearly defined purpose and measures of success that are linked to the department’s strategic objectives. This includes developing key performance indicators and measures to track progress effectively. Additionally, benefits realisation metrics during the implementation phase is being integrated into the reporting approach. 3.5 Initial measures under consideration include output metrics, such as improved schedule adherence and cost control, and input metrics, such as enhanced productivity. In some cases, baseline data for these measures already exist, while in others, baselines will need to be established. A target has been set to agree the key performance indicators within the next three months. 3.6 The department operates within an ever-evolving system, where significant procurement improvements will progressively emerge over time. While positive progress is expected by June 2026, it is acknowledged that achieving greater improvements will require sustained effort over a longer period. 3.7 Work is underway to define a common performance reporting lexicon for the NAD Group. This will support clear and standardised reporting of progress against agreed measures and benefits realisation.