Select committee: Defence Committee
Conclusion 21
Ninth Report - It is broke — and it’s time to fix it: The UK’s defence procurement system
Published 16 Jul 2023
Paragraph 150
Defence Committee All items in this report Report on parliament.uk ↗
Conclusion (the committee's words)
Senior Responsible Owners (SROs) are a critical part of a successful programme. Their knowledge of a programme and the relationships they build theoretically enable issues to be resolved sooner and more effectively. Crucially, via their formal letters of appointment, SROs are accountable to Parliament, including its specialist Committees, such as Defence and Public Accounts, for the successful delivery of the programme in their charge. However, the turnover and frequent ‘multiple hatting’ of SROs can negatively impacts their programmes. The Ministry of Defence should endeavour to keep SROs in post for a minimum of five years to ensure continuity. Whilst it may not be possible to mandate the length of the position, the Ministry of Defence should provide incentives to reward length of service e.g. through renumeration packages and subsequent promotion. The Ministry of Defence should also ensure that SROs for category A programmes (i.e. those over £400 million) should have 100% of their time doing that specific job, as opposed to balancing a number of programmes or other roles in one appointment.
From: Defence Committee, Ninth Report - It is broke — and it’s time to fix it: The UK’s defence procurement system (HC 1099), paragraph 150, 16 July 2023
Government response
The government responded to the whole report on 20 September 2023 (deadline 16 September 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government does not agree that the procurement system is broken, but accepts "the need for reform" and sets out reform work already under way across Defence.
- On the Committee's P75 recommendation, it agrees there is "a strong argument" for higher probability figures for schedule approval of complex programmes, and has issued guidance making P70 "the norm on schedule" for Government Major Projects Portfolio programmes. It says approval at a higher P value "will not improve project performance".
- It agrees on the need for more consistent dialogue with industry and on "an increased emphasis on time", but says it "would therefore not be desirable" to use the Urgent Capability Requirements approach across the whole defence portfolio.
- On accountability, it "recognises the need to clarify internal accountabilities", and says this will be addressed in the Defence Operating Model review. It says "active consideration" is being given to the CEO of DE&S joining the Defence Board.
- On SRO tenure, it notes there is "no formal mechanism" to keep an individual in post for five years, but says it continues to explore how to use available levers such as performance pay and pivotal role allowances.