Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
MoD undertaking highly complex, multi-billion-pound programmes to transform IT and inventory management.
Conclusion
The MoD has put in place the £2.5 billion Business Modernisation for Support (BMfS) programme to upgrade its legacy IT infrastructure and introduce aligned business processes across its bodies. This programme is intended to resolve many of the historic issues the MoD has faced in managing its inventory, however, it is highly complex, transforming services for around 65,000 users across Defence whilst maintaining operations throughout.23 It has also put in place the Future Defence Support Services (FDSS) transformation programme, which aims to find the best commercial arrangements for inventory management from
Government Response Summary
The government agrees with the committee's observation and provides updates on the progress of the BMfS and FDSS programmes, including BMfS's first major deliverable in autumn 2024 and FDSS's key investment decision milestone at year-end.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2025 3.2 There are four programmes within the Support transformation (now retitled Support Major Programmes) portfolio: • Business Modernisation for Support (BMfS). This programme is in transition from design to delivery with the first major deliverable on track for autumn 2024, when all three Services move onto the same base inventory system for the first time, and two 40-year-old legacy systems are retired. Further progress is dependent on the department approval to grow the team to deliver the desired outcomes. • Future Defence Support Services (FDSS). This programme is working towards a key investment decision milestone at the end of the year. Progress is dependent on the department’s approval to grow the team to deliver the desired outcomes and which, if not forthcoming, will trigger an extension of the current Logistic Commodities and Service Transformation (LCST) contract. • Sustainable Road Transport. This programme is proceeding towards the final investment decision point in late 2025. Progress is dependent on resourcing the team past its current end date of March 2025. • Fuels Transformation Programme. This programme is in the delivery stage and due to close, as planned, by April 2025, when initiatives will transfer to single Service business-as-usual activity. 3.3 All programmes have an agreed commercial strategy that ensures appropriate industry engagement. Good use is also made of industry advisory bodies and industrial placements.