Defence acquisition and procurement inquiry launched
19 September 2016
The Defence Committee launches an inquiry into the acquisition and procurement policy of the Ministry of Defence.
Each year the Ministry of Defence publishes the Defence Equipment Plan which sets out its plans for the next 10 years to deliver and support the equipment the UK Armed Forces require to fulfil their role.
The equipment requirements of the MoD are based on its assessments of current and future threats, as set out in regular Strategic Defence and Security Reviews. The 2015 Review committed to increase the equipment budget by at least 1% each year in real terms between 2015 and 2020, and to continue to meet the NATO target to spend 20% of the defence budget on researching, developing and procuring new equipment. In total, the MoD will spend £178bn over 10 years on equipment and support.
Given the changing nature of external and internal threats and uncertainties, every risk cannot be predicted and mitigated effectively. As a result, procurement processes must ensure the UK has the capacity to generate the capabilities required, as and when needed. However, a recent report by Civitas argues for a complete overhaul of the acquisition process which it says is not fit for purpose.
Terms of reference
The Defence Committee invites written submissions to its inquiry which address the following questions:
- How well is defence acquisition reform—a major Departmental initiative—working?
- What issues, risks and uncertainties exist within the Equipment Plan?
- Do we need a new Defence Industrial Strategy?
- Post-Levene*, can the frontline commands meet their obligations for resource management and requirements setting?
- How are acquisition competencies being developed and assured?
- Does the emerging acquisition system offer value for money?
- What are the implications of leaving the EU for the viability of the UK-based defence industry?
- How is the SSRO, and the single-source procurement regime, contributing to UK defence?
- How effective is the application of science and technology and research and development within the defence environment.
*The fourth annual report by Lord Levene on the progress the Ministry of Defence has made on implementing his recommendations was published on 11 January 2016.
In addition, the Committee welcomes evidence on procurement in relation to case studies on:
- AH-64E Apache Helicopters
- P-8A surveillance aircraft
- Typhoon Tranche 3
Submissions
Written submissions for this inquiry should be submitted via the inquiry page on the Defence Committee website. The deadline for written submissions has been extended to Tuesday 20 December 2016.