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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