The procurement system the government inherited was slow, expensive and not fit for a period of warfighting readiness, and procurement segmentation and new commercial pathways are intended to make buying more agile while opening opportunities to small firms and innovators, according to an answer given in Parliament.
Edward Morello, the Liberal Democrat member for West Dorset, asked what steps the department is taking to improve defence procurement.
Luke Pollard, the Minister of State for Defence, said: “The procurement system we inherited was broken. Defence procurement was slow, expensive and not fit for a period of war fighting readiness.
“Through our Procurement Segmentation and new Commercial Pathways, we are making procurement more agile, opening up opportunities for SMEs and innovators, and ensuring every pound of defence spending delivers stronger military capability and better value for the taxpayer.”
Segmentation sorts what the department buys into categories and applies different rules and timescales to each, so that a software capability or a drone does not pass through the same approval machinery as a submarine. Major platforms keep the full process, while fast-moving categories run on compressed timelines designed to be measured in months.
This publication reported when the department outlined the reforms and pledged an SME action plan, and the Defence Office for Small Business Growth was launched at the start of this year to give smaller suppliers a route in. Spending with small and medium sized enterprises is published annually by region in the department’s regional expenditure statistics.
Pollard and his chums have replaced the old system with a new one that works perfectly: don’t order anything and then nothing can be delivered over budget or over schedule.
This government has yet to order a new warship, a new fast jet or a new armoured vehicle.
They have ordered 3 x FSS from Navantia. Plus some of the -UAV drones and Dragonfire. Plus 23 x AW-249s. And the Boxer RCH 155 was signed off under the current government
Problem is they have been passed a whole heap of orders from the last lot, in a game of pass the parcel. With 13 frigates in ordered/in constructioon, there’s no money left for now to order more. Ditto AFVs, with Ajax, CR3, Boxer accounting for the budget.
There will be a some new orders over the next 12-18 months, as the light utility vehicle is getting to the starting line, then the T9X unmanned vessels, Norwegian MHC OSVs and Hawk replacement are on the horizon.