Major Projects Report 2014 and the Equipment Plan 2014 to 2024, and reforming defence acquisition - Public Accounts Contents


3  Risks to delivering Army 2020

17. We reported on Army 2020, the Department's programme of change and restructuring to integrate fully a regular Army of 82,500 with a larger and more frequently used Army Reserve of 30,000, in September 2014. We made several recommendations about the Department's decision-making during the development of Army 2020 and its progress with implementing the programme thereafter. The response to our report did not fully address all our concerns around feasibility testing for proposed projects; managing the risks around recruitment and retention of soldiers; and the approach taken to contingency planning. It did set out how the Department was holding Capita, its recruiting partner, to account for its performance in delivering the Army recruitment contract, with the Department implementing an interim performance regime in June 2014. However, no information was provided on how this had been applied or on Capita's progress with implementing its new recruitment software, expected by summer 2015.[20]

18. In response to our questions on Army recruitment the Department told us that it was "underwhelmed" by Capita's performance, which it assessed had been "mixed". It believed Capita was clearly committed to helping the Department deliver the programme and had made progress streamlining some recruitment processes. However the Department still had to use an IT system that had been intended to be an interim solution because the long-term proposal put forward by Capita was deemed by the Department to be "unacceptable" and "too expensive".[21]

19. The Department told us that the recruitment of reserves was up 80% year on year, with more reserves being recruited in the first quarter of 2015 than previous quarters. Recruitment of reserves stood at 20,480 against a total of 19,900 for the end of the current year, although some of this is due to reclassification rather than improved performance. On regular soldier recruitment, the Department achieved 66% of its target for 2013-14, the last complete year for which it has figures, and expects to achieve 78% of its enlistment target in 2014-15. The regular strength of the Army at 31 December 2014 was 82,830—above the Army 2020 requirement of 82,500.[22] The Department believed that meeting targets beyond 2016 would be challenging and required significant improvements to performance. Despite our earlier recommendation, there was still no clear contingency plan in the event the Department fails to recruit sufficient numbers.[23]


20   HM Treasury, Treasury Minutes, Government responses on the Eighth and the Tenth to the Fifteenth reports from the Committee of Public Accounts: Session 2014-15, Cm 9013, 11 November 2014, pages 9-11 Back

21   Qq 152, 153 Back

22   Written evidence from the Ministry of Defence 10.03.15 Back

23   Qq, 145, 146, 148, 149, 156, 157 Back


 
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Prepared 20 March 2015