Memorandum submitted by Hunting plc on
OCCAR (12 August 1999)
I have pleasure in replying to your letter of
20 July 1999 concerning OCCAR (Organisation Conjointe de Cooperation
en Matiere d'Armement).
In general, we would welcome the establishment
of an effective European Procurement Agency to cover those requirements
where two or more European nations have a common requirement,
provided that the Agency could be empowered to conduct its business
without constant referral to each of the participating nation's
own procurement agency.
In answer to your specific questions, I would
reply as follows:
OCCAR track record and function
Whilst we have had no direct involvement with
OCCAR other than briefings by OCCAR representatives, it would
seem that, apart from MRAV, little change has occurred in the
way in which the collaborative programme offices, such as PBFA
and BTP assigned to OCCAR operate. They continue to be located
remotely from OCCAR HQ.
Consultation
We have been aware of the convention, but I
am not aware of any official consultation request.
Provisions of the Convention
It would seem that the Board of Supervisors
has reserved considerable executive power to itself. It would
seem, therefore, that decisions on contract award are likely to
be subject to considerable political interference. We would prefer
to see that the convention required delegation of much greater
authority to the director of the executive administration and
the director of OCCAR, subject to increased accountability regulations
which would ensure that contracts were awarded on a broad best
value for money criteria.
OCCAR should be required to operate against
a set of standard conditions of procurement in the similar way
in which the European Space and Technology Organisation functions.
Structure and Legal Basis
See above. Consideration should be given to
introducing a PFI mandate into OCCAR.
Extending Membership of OCCAR
We would have no objections to extending membership
of OCCAR to include all representatives and WEU nations who wish
to take advantage of co-ordinated European procurement provided
that adequate degrees of freedom are granted to the executive
administration.
Rationalisation of European Defence Procurement
We recognise that any agreement to move towards
a European Procurement Agency has to be on the basis of compromise
and the test should be whether or not the customer will obtain
better value for money. We have experience of dealing with the
European Space Agency where it would seem that the member states'
ability to politicise procurement decisions may detract from the
value for money given by central procurement. However, we would
accept that there are winners and losers and that the small states
probably obtain significant benefits. From an industrial point
of view, the benefits of an efficient procurement organisation
lie in shortening the procurement process as recognised in the
UK Smart Procurement Initiative.
We consider, therefore, that OCCAR could present
a sensible approach to rationalisation of European collaboration,
provided that sufficient degree of freedom can be granted to the
procurement agency.
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