MPs attack “woeful” defence procurement
A highly critical report from the Defence Select Committee has accused the Ministry of Defence (MoD) of letting British troops down.
The inquiry focuses on the “Smart Acquisition” procurement system introduced six years ago by the MoD. At the time the department pledged that the new system would allow it to buy defence equipment faster, cheaper and better and shorten the time taken to introduce new, cutting edge technologies.
The MoD claims to have identified savings of £2 billion over ten years through the programme. However, this figure was bluntly dismissed by the MPs, who said they had no confidence in the estimate.
Today’s report concludes that the system has “failed to deliver on almost all counts” and says that the “woeful” performance of the Defence Procurement Agency will take some time to reverse.
Committee chairman, Bruce George, said: “Our armed forces are having to deal with many new security challenges in conditions where they are already overstretched and under-staffed. The last thing they need is to worry about is whether or not critical equipment will turn up on time or at all.
“Our report has highlighted some quite staggering problems in the way that the procurement of vital defence equipment has been handled.
“Only now is the Defence Procurement Agency making concerted efforts to identify best practice in procurement and contracting. We remain to be convinced that these actions will have a positive impact and it is imperative that the situation is monitored closely.
“It is also clear that delays in MoD decision making have resulted in uncertainty and expense for defence companies. This cannot carry on. British firms need to know that a level playing field exists if they are to be able to compete with defence companies in other countries.”
The committee states that in 2002-03 there were average delays on major projects of 18 months, and in-year cost increases of £3.1billion. It warns that further cost increases and time slippages should be expected.
The MPs are sharply critical of a “fear culture” which has developed within the MoD, resulting in project problems being hidden and remaining undetected for years. Relating to this, they argue that the MoD has failed to invest enough money and time to assess project risks and create contingent plans.
Specific concerns are expressed about the Eurofighter project. The MPs said they supported attempts to ensure that new aircraft are more flexible, but find the MoD’s assertion that this will have little cost impact “surprising”.
On the Joint Strike Fighter, which is currently too heavy to take off from flight decks, the MPs warn that the problems are likely to impact on its in service date, and as such affect the offensive airpower of Future Carriers when they come into service.
