Contents
Foreword 6
Executive Summary 8
Introduction 11
Chapter 1. Reforming the Defence Equipment and Support organisation 12
Section 1: What is Defence Acquisition? 12
Section 2: The need for Reform 13
Section 3: The Root Causes of Underperformance 14
Root Cause 1: An overheated Equipment Programme 14
Root Cause 2: An unstable interface between the Requester and Deliverer 15
Root Cause 3: Insufficient Skills and Management Freedoms Within DE&S 15
Section 4: Potential Solutions 16
Managing Public Money 22
National Security/Protecting National Interests 23
Section 5: Is legislation needed? 24
Chapter 2. A New Framework for Single-Source Procurement 25
Section 1: The Current Approach to Single-Source Procurement 25
MOD single-source procurement 25
The current single-source framework 26
Section 2: Review of Single-Source Pricing Regulations 27
Lord Currie's Report 27
Lord Currie's proposals 28
Section 3: The New Framework 29
A New Approach 29
Principles underpinning the New Regulations 30
Better price negotiation 30
Stronger efficiency incentives 31
Better joint planning on key facilities 32
Stronger financial and performance management regime 33
Encouraging SMEs 33
Better compliance 34
Industry information 36
Section 4: Governance of the New Framework 36
The Single Source Regulations Office 36
A Statutory Approach 37
Figure 1: Defence Acquisition 13
Figure 2: Governor, Requesters, Deliverer, Executer 18
Figure 3: Implementation of the GOCO operating Model 20
Figure 4: A Proposed Corporate Structure 21