Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
Defence reform significantly enhances National Armaments Director's control over acquisition processes.
Conclusion
On 1 April 2025 the Department’s defence reform programme reorganised it into four areas – the Department of State, a Military Strategic Headquarters, a National Armaments Director (NAD) Group and Defence Nuclear.29 The Department anticipates that defence reform will give the NAD significantly more control over the end-to-end acquisition process than the old structure provided.30
Government Response Summary
The government agrees with the committee's observation regarding the departmental reorganisation and the NAD Group's role, confirming its ongoing procurement reforms build on this structure to enhance collaboration and acquisition processes.
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.