Select Committee on Defence Written Evidence


Memorandum from the Defence Manufacturers Association

  1.  Over the past four to five years, the MoD has steadily moved towards greater use of industry support solutions as it seeks to reduce its overheads and find greater operational effectiveness. More recently there have been moves to contract for availability or capability where this is achievable within industry and does not directly affect frontline military capability. To enable the most proficient contracting for availability or capability, commercial decisions on investment need to be taken in the three areas of acquisition, its through life management and the infrastructure needed to deliver the availability or capability.

  2.  In 2004, the Defence Manufacturers Association established an "Infrastructure Group" for members who have a particular interest or involvement in the provision of the infrastructure needed to support a capability, both in the UK and overseas. The Group has 33 members currently including DML, KBR, Carrillion, Rolls Royce, Nexor, Sodexho, Turner Facilities Management and VT.

  3.  Over the past three years, this Group has achieved an excellent rapport with, and support from, the Chief Executive of Defence Estates, Vice Admiral Peter Dunt, CB, who has personally briefed the members regularly and listened to Industry's suggestions and feedback. In addition, the Chief Executive has made members of his executive Board available to attend meetings, which has led to greatly improved consultation with Industry and a more coherent approach to the management of the estate than hitherto. The group has also been instrumental in bringing together MoD officials from Defence Estates, the DLO and DPA (prior to the formation of the DE&S) to bring focus to programmes that span more than one area of business. The group continues to emphasise the need for ever closer liaison between DE and DE&S on estate and infrastructure issues related to equipment programmes, and this is particularly important if the Infrastructure "Line of Development" is to be properly included in TLCM planning. Recent discussions have centred on how the MoD can be more transparent with their longer term planning (Non-Equipment Investment Plan), so that in turn the Industry can be forewarned of forthcoming requirements and plan accordingly and this issue too is showing significant improvement.

  4.  Not all infrastructure and construction projects are managed by Defence Estates, as an example, the Allenby/Connaught PFI project. We know that this is an issue regularly debated within the MOD. Industry's views are mixed and relate to their individual experience and relationships between companies and the MOD "manager". Generally companies are concerned only that projects are managed professionally and effectively. In this area, as much as any in MOD acquisition, the timeliness of decision making is important. The general view is that, however managed, decisions are very slow to be made for reasons often outside the control of Defence Estates. Some projects are many years in the gestation. The scale and complexity of the development of the defence estate over the next two decades as a result of currently planned projects, relocation of units from Germany, the Defence Training Review and major equipment project with infrastructure implications (eg CVF) is considerable. It will require timely decision making and close dialogue with Industry if the right investment decisions are to be made and resources made available by the companies concerned.

  5.  We very much hope that the helpful dialogue that has developed through the creation of our Infrastructure Group will continue and that trust and confidence will continue to grow under the new Chief Executive.

1 May 2007





 
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