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Ministry of Defence: The Major Projects Report 2011
HC 1678, Sixty-eighth Report of Session 2010-12
- House of Commons - Committee of Public Accounts
- TSO (The Stationery Office)
'Ministry of Defence: The Major Projects Report 2011 (HC 1678)' examines the continuing struggle of the Ministry of Defence (MoD) to manage its equipment programme, resulting in cancellations and deferrals of major projects which have had a damaging impact on value for money.
In 2010-11 the forecast costs to complete the 15 largest defence projects increased by £466 million. Since their original approvals the estimated costs of these 15 projects have increased by £6.1 billion and now stand at approximately £60 billion (an increase of 11.4%).
Projects approved since 2002 show significantly lower cost growth than those approved before this date. But now the MoD faces difficult decisions to cancel or slow projects aswell as reducing equipment, adding significant long-term costs to the whole defence programme and to unit costs within the programme. Capability has been affected and this has all resulted in poor value for money.
Large defence equipment projects have been identified as contributing disproportionately to overall cost growth. In the past, the MoD has repeatedly failed to challenge unrealistically low estimates for the largest and most complex equipment projects from suppliers.
The MoD is still unable to set out openly the extent of the gap between income and expenditure, or by how and when any shortfall will be resolved.
|Format||Paperback||Published||10 Feb 2012|
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