Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Department plans ambitious reductions in defence procurement and programme completion timescales.
Conclusion
The Department intends to build on procurement reforms begun under the previous government to procure faster. It has identified that the biggest problem is that it takes too long to get programmes on contract.31 24 Qq 22 and 40 25 Qq 42 and 43 26 Q 27 27 Qq 40 and 43 28 Qq 44 and 46 29 Q 29; Secretary of State for Defence, Defence Reform, Statement made on 1 April 2025, Statement UIN HCWS573 30 Q 28 31 Q 47 12 Consequently, the Department aspires to reduce the time taken to award a contract for the most complex programmes from six years to two years, and for programmes in the second segment from three years to one year.32 The Department is also trying to reduce the average time for completing programmes by ensuring that the vast majority of them are completed in less than five years.33
Government Response Summary
The government confirms its ongoing procurement reforms are designed to reduce programme and contract award times, with progress expected by June 2026, and will establish key performance indicators within three months.
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.