Source · Select Committees · Defence Committee
Recommendation 126
126
Accepted
Industry desires long-term consistency, earlier engagement, and multi-year budgets from DE&S, alongside cultural change.
Conclusion
When we took evidence on DE&S, we heard from industry that it wanted: long- term consistency on required capabilities; earlier engagement in the requirement setting process, multi-year budgets; an improved (and consistent) social value framework; and decisions made with reference made to imperatives other than lowest up-front cost (such as end-user needs, through-life cost, or industrial resilience).257 There was a recognition among witnesses that improvements were taking place but a warning that much of the required change would need to be cultural (as opposed to process-based).258 ADS also 251 Oral evidence taken on 18 April 2023, HC (2022–23) 1246, Q17 252 Q271; Defence Committee, Sixth Special Report of Session 2022–23, Special Relationships? US, UK and NATO: Government Response to the Committee’s Sixth Report, HC 1533, Para 16 253 Ukraine asks EU for 250,000 artillery shells a month, Financial Times, 3 March 2023; Why the 155 mm round is so critical to the war in Ukraine, Associated Press News, 23 April 2023 254 UK Asks BAE to Ramp Up Artillery Shell Production Amid Ukraine Drawdown, The Defense Post, 17 November 2022 255 DE&S places new order with BAE Systems to increase 155mm shells stockpile for British Army, DE&S press release, 11 July 2023 256 Q378; 381 257 BAE Systems plc (DES0035); ADS (DES0021); Lockheed Martin UK (DES0022) 258 Oral evidence taken on 17 May 2023 HC (2022–23) 1099, Q25 [Lucia Retter] 48 Ready for War? highlighted that many of these issues had a different impact on SMEs meaning that when changes were introduced, their impact needed to be considered not just in relation to defence primes, but in relation to the whole of the supply chain.259
Government Response Summary
The government's new Integrated Procurement Model aims for earlier expert assurance, empowerment of subject matter experts, and spiral development, alongside a transformed partnership with industry that includes earlier strategic engagement to build resilience.
Government Response
Accepted
HM Government
Accepted
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. Our transformed partnership with industry, where we will engage much earlier in strategic conversations to create a more resilient, reliable, and adaptable industrial base.