Source · Select Committees · Public Accounts Committee

Recommendation 11

11 Accepted

MoD's digital transformation track record is patchy, lacking sufficient skilled personnel.

Conclusion
The MoD’s track record in delivering business and digital transformation is patchy; when we reported on The Defence Digital Strategy in 2022, we found that the MoD was struggling to deliver its largest and most transformational digital programmes. We also observed that the MoD faced challenges recruiting all the digital skills it needed, and as a result, the Committee is concerned about the level of skills and personnel available to MoD to manage these programmes.25 The MoD stated that it has been pragmatic and incremental in its approach to the BMfS programme, with the first phase focused on stabilising and modernising its systems. The programme is also divided into thematic areas so that the MoD can acquire commercial off-the-shelf software for each one.26
Government Response Summary
The government agrees with the committee's concerns, providing a January 2025 target. It outlines the status of four ongoing Support transformation programmes addressing digital delivery and skills, with some progress dependent on team growth approvals.
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.