Source · Select Committees · Defence Committee
Recommendation 137
137
Accepted
Current defence procurement processes unable to ensure industrial resilience for scale
Conclusion
The Minister was clear that current procurement processes were no longer viable as a result of the pace of innovation.277 He acknowledged that this was a complete paradigm shift and a “frankly nascent part of policy making”.278 He warned that no private business has a peacetime obligation to maintain unused production capacity without a contract 270 Ministry of Defence, Defence’s response to a more contested and volatile world, Cm 901, July 2023, p 40–41 271 Oral evidence taken on 15 November 2023, HC (2023–24) 52, Q78 272 Ministry of Defence, Defence’s response to a more contested and volatile world, Cm 901, July 2023, p 42 273 Ministry of Defence, Defence’s response to a more contested and volatile world, Cm 901, July 2023, p 43 274 Q372 275 Q373 276 Q377 277 Q377; 381 278 Q389–391; 472 Ready for War? 51 and so having the resilience in the industrial base to scale is a live issue which neither the MOD nor the Department for Business and Trade (responsible for the mobilisation of the industrial base) have considered for at least a generation. He told us that: Whoever is in my office, the Secretary of State’s office and MinDP’s office for the next integrated review will have to have this stuff in mind, because we have not had to think about it since the ’80s.279 On 22 January 2024, the Permanent Secretary told our sister Committee, the Public Accounts Committee, that the MOD was hoping to make the announcement of the changes to procurement policy before the House rose for the Easter recess.280 Conclusions and recommendations
Government Response Summary
The government highlighted its new Integrated Procurement Model, a system designed to reform military procurement with earlier expert assurance, empowered subject matter experts, and 'spiral' development to avoid over-complex, over-budget, and delayed programmes.
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.