Source · Select Committees · Defence Committee
Recommendation 125
125
Accepted
Slow MOD procurement response to Ukraine war, exemplified by delayed 155mm shell contract
Conclusion
Professor Clarke warned us in April 2023 that the implications of the Ukraine war were “taking time to filter through to Governments.”251 One of the most obvious examples of this is the length of time it took to conclude a contract for an increase in production of 155 mm artillery shells.252 This is despite regular pleas from Ukraine for these shells in the Spring of 2023.253 It was first reported that the Government had issued a letter of intent (telling industry that it intended to purchase more artillery shells) in November 2022254 but it took 9 months of negotiation before a contract was finally signed in July 2023.255 When we raised this with the Minister for the Armed Forces, he told us that the delay had been caused by the lack of a “going-concern production line and there was some debate about how the manufacturing capacity was going to be funded”. The contract, when agreed, was a multi-year contract which specified a number of shells to be delivered each year ensuring the long-term viability of the production line, but the Minister acknowledged that it had demonstrated a need to change the way in which the MOD approaches procurement.256 There are possible lessons to be learned from the pace at which our US allies have increased capacity and production. Box 5: Timelines of contracting for NLAWs and 155 shells NLAW • Letter of intent presented to Saab as Authorisation to Proceed: September 2022 • Contract to Saab: 7 December 2022 • Delivery from July 2023 155 Shells • Letter of intent presented to BAE as Authorisation to Proceed: November 2022 • Contract to BAE: 11 July 2023 • Delivery: Q1 2025 Source: Compiled by Defence Committee staff
Government Response Summary
The government allocated £1.95Bn and placed £1Bn in contracts to build munitions stockpiles, including 155mm rounds, and has developed a strategy for munitions based on lessons from the Ukraine war.
Government Response
Accepted
HM Government
Accepted
£1.95Bn was allocated in the 2023 Spring Budget to address long-standing challenges across the defence programme to improve our resilience, which will make us better able to respond to new threats. This funding is being used to build the department’s munitions and medical stockpiles and support a wide range of critical activity. To date investments include support to deliver a large purchase of 155mm munitions, building storm shadow stockpiles, supply chain mapping, wargaming, enhancements to a range of critical infrastructure, and medical stockpiles. In addition to these uplifts, we have placed almost £1Bn in contracts to replenish UK stocks of equipment and munitions already granted to Ukraine. Contracts have been placed to replenish UK stockpiles include Next Generation Light Anti-Tank Weapons; Starstreak High Velocity Missiles; Lightweight Multirole Missiles; Javelin missiles; Brimstone missiles; 155mm artillery rounds; and 5.56mm rifle rounds. Exact stockpile holdings are held at secret and are not releasable on the grounds of national security. However, the war in Ukraine has highlighted to the UK and allies that we all need to invest more in munitions to increase stockpile levels and ensure we have the industrial base required. In response the MOD has developed a strategy for munitions, and we continue to work with allies and partners, particularly NATO, to ensure the UK and NATO has the munitions it needs. The lessons that Defence is learning from Ukraine have led to a re-evaluation of our assumptions around capabilities and readiness.