Defence Equipment 2008

HC 295, Tenth Report of Session 2007-08 - Report, Together with Formal Minutes, Oral and Written Evidence

Author:

House of Commons - Defence Committee

Publisher:

TSO (The Stationery Office)

The merger in April 2007 of the Defence Procurement Agency and the Defence Logistics Organisation created Defence Equipment and Support, an integrated equipment and support organisation with 29,000 staff and a budget of £16 billion, 43% of the defence budget. This report examines the first year of Defence Equipment and Support's operation, concluding that it is too early to judge whether it is delivering the expected benefits. Planned staff reduction of 27% must be handled carefully to retain skills and not impact adversely on services to the armed forces.

The report also investigates programme slippage, finding that seven of the largest equipment programmes have experienced in-service date slippage totalling 6.5 years. The Committee criticises the Ministry of Defence's (MoD) poor performance in control and management. The Astute submarine, Type 45 destroyer, and Nimrod MRA4 aircraft programmes are forecast to cost £2.9 billion more than the approved cost and total slippage on these programmes is some 14 years in all. The Nimrod programme should be examined critically to assess whether it will ever deliver the capability required within the timescale needed.

Two contracts for new aircraft carriers, announced in July 2007, have still not been signed and the in-service target dates of 2014 and 2016 are at risk if there is further delay. The planning round for 2008 is challenging, with cuts and delays expected in some major programmes. The MoD needs to take difficult decisions to achieve a realistic and affordable equipment programme, which may mean cutting whole programmes rather than making cuts or delaying orders.

Extent	114 pages	ISBN	9780215514301
Size	A4	Price	£15.50
Binding	Paperback	Published	27 Mar 2008
Availability	Colour copy: 3 - 5 days	Delivery	Delivery options and charges

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