Source · Select Committees · Defence Committee
Recommendation 3
3
Paragraph: 24
Procurement practices and skills were frequently found wanting; in 2011 the NAO concluded that the...
Conclusion
Procurement practices and skills were frequently found wanting; in 2011 the NAO concluded that the failure to introduce any new vehicles since 1997 indicated that, “the Department’s standard acquisition processes for armoured vehicles was not working”. Subsequently the Committee of Public Accounts concluded that “there [was] poor accountability for long-term equipment projects”. This process is, self- evidently, still not working a decade later.
Paragraph Reference:
24
Government Response
Acknowledged
HM Government
Acknowledged
The Department notes the Committee’s comments and acknowledges that defence acquisition has faced challenges in the past, including within its Armoured Fighting Vehicle portfolio. Whilst defence acquisition remains inherently challenging and complex, our approach has evolved significantly over the past decade, including improved programme, portfolio and project management, stronger functional management and project controls. The introduction of a three step approvals process, with the Strategic Outline Case as a new and earlier approval point, provides upfront clarity of programme scope and understanding of key risks, enabling these to be evaluated and the strategic direction for individual programmes to be agreed at an earlier stage. These changes provide a sound basis for the delivery of future programmes following the Integrated Review. The National Audit Office has recognised that Defence is making progress. For example, in its March 2020 report into Defence Capabilities,1 the NAO noted that the MOD has reduced delays to delivering programmes over the last ten years. The Army recognises, however, that the NAO 2020 report still shows that there are areas for improvement. 1 https://www.nao.org.uk/wp-content/uploads/2020/03/Defence-capabilities-delivering-what-was-promised.pdf The introduction of Defence Major Projects Portfolio (as part of the Government Major Projects Portfolio) has resulted in regular scrutiny through the Infrastructure and Projects Authority (IPA) Gateway audits, which have reinforced that progress is being made.