Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
MoD demonstrates long-term commitment to industry for continuous munitions production and adaptable capabilities.
Conclusion
The MoD has also launched some initiatives to demonstrate a long-term commitment to industry regarding future demand, including an order with BAE Systems for 155mm artillery shells.54 The MoD told us that it wanted to develop an “always-on production line on munitions”, so that it could surge supply when necessary.55 It is also engaging with industry to discuss technical developments which are occurring at fast pace because of the war in Ukraine. The MoD said that without government giving industry appropriate guidance, industry cannot make long-term commitments because the chances of it developing something that would not be marketable is high. The volatility in the nature of the threat means that what is most important is to build adaptable capabilities that can respond to changing requirements.56
Government Response Summary
The government agrees with the implied recommendation to demonstrate long-term commitment and guidance to industry, committing to provide a clearer signal on future demand and improve visibility of long-term planning through the new Integrated Procurement Model by Spring 2025.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2025 4.2 The department agrees with the need to provide a clearer signal to industry on future demand. Greater transparency of the future pipeline is an important element of the new Integrated Procurement Model, building on earlier commitments in the Defence and Security Industrial Strategy (DSIS) and Defence Command Paper Refresh. 4.3 Since publication of the DSIS, the Defence Capability Framework, the Acquisition Pipeline, a number of sector specific strategies and most recently the Science and Technology Collaboration and Engagement Strategy all mark significant progress on this commitment and allow industry to plan ahead. 4.4 Under the Integrated Procurement Model, the department is continuing to improve visibility of long-term planning processes to inform industry’s future plans and investment. The department is forming a new alliance with industry, moving beyond the traditional customer-supplier relationship, developing long-term strategic alignment that not only delivers the capabilities required now, but binds the department and industry into a joint endeavour that can sustain the nation in times of conflict. 4.5 The department is also bringing industry into the fold much sooner, from the conception and development of ideas through to the final stages of delivery and are involving industry at all levels earlier in the military capability development processes. The department is working to ensure there is a collaborative technical environment, operating at secret levels of classification, to share information with industry in a much more dynamic way. 4.6 The department continues to publish the Acquisition Pipeline twice yearly, in April and October.