Source · Select Committees · Defence Committee
Recommendation 124
124
Accepted
MOD procurement frequently suffers significant delays and cost overruns, failing Armed Forces
Conclusion
In 2023, we examined the organisation responsible for the majority of MOD procurement (Defence Equipment & Support).248 Pointing to the conclusion by the Public Accounts Committee that defence equipment “arrives into service many years late and significantly over-budget, with depressing regularity”, something which means that “neither taxpayers nor our Armed Forces are being served well”,249 we welcomed the acknowledgement by the CEO of Defence Equipment & Support that “we have some really horrible, broken programmes that aren’t good enough”.250 240 Oral evidence taken on 4 July 2023, HC (2022–23) 1689, Q46; Ministry of Defence (CDS0001) 241 Oral evidence taken on 12 December 2023, HC (2023–24) 54, Q97 242 Q318 243 Q34–5; 48–9 244 Ministry of Defence (CDS0001) 245 Q99 246 Q115 247 Oral evidence taken on 5 September 2023, HC (2022–23) 1804, Q37–8 248 Defence Committee, Ninth Report of Session 2022–23, It is broke — and it’s time to fix it The UK’s defence procurement system, HC 1099 249 Public Accounts Committee, Forty-Eighth Report of Session 2022–23, MoD Equipment Plan 2022–2023, HC 731 250 Oral evidence taken on 21 February 2023, HC 1119, Q110 Ready for War? 47
Government Response Summary
The government is reforming the defence acquisition system with a new Integrated Procurement Model, which includes earlier expert assurance and empowerment of subject matter experts, to prevent over-complex and over-budget programmes.
Government Response
Accepted
HM Government
Accepted
The department is reforming the defence acquisition system to address the challenges identified in this report and in the Defence Sub-Committee’s 2023 report on Defence Equipment and Support. Details of the new Integrated Procurement Model were set out in an oral statement by the Minister for Defence Procurement on 28 February 2024 and a supporting document is available at 20240228_Integrated_Procurement_Model (publishing.service.gov.uk). This is highlighted in the new Integrated Procurement Model–a system that will see earlier expert assurance of future military programmes to ensure they will deliver for UK forces on the frontline. The reforms will look to avoid previous challenges where programmes have been over-complex, over-budget, and over time. The reforms will see greater empowerment of subject matter experts across the defence enterprise including Dstl scientists, government export leads, finance experts and industry partners to challenge and shape proposals before they receive the go-ahead. Driving pace is key to the overall reforms and the concept of ‘spiral’ development will be at the forefront as new programmes are initiated, avoiding capabilities that are not adaptable to the changing environment or are overly complex and too bespoke to export.