2015 Report details for project: The Materiel Strategy

Project name: The Materiel Strategy - there are 5 reports for this project: 2014, 2015, 2016, 2017, 2018
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: Transformation - see all reports for this category
Description: The Materiel Strategy Programme seeks to design and implement transformational change within Defence Equipment and Support (DE&S), the organisation that equips and supports the Armed Forces for current and future operations, in order that DE&S can operate more effectively and efficiently within a simplified and improved Acquisition System. Following the decision to terminate the competition for a Government Owned Contractor Operated arrangement in December 2013, the programme has proceeded with two strands of activity: firstly, the establishment of DE&S as a bespoke, central government trading entity with the necessary freedoms and governance structures to embark on the transformation process; and, secondly, the transformation process itself which is supported by an injection of Managed Service Provider private sector skills into DE&S.
DCA (RAG): Amber/Red
DCA text: We understand that the MPA’s RAG rating of Amber / Red at Q2 was based on its assessment of the impact of delay to award of the Managed Service Provider contracts and concern over how these private sector companies would integrate with DE&S once on contract. Since Q2, DE&S has awarded contracts in November 2014 (7 weeks later than planned) for Managed Service Provider support on Project Delivery (Work Package 1) to Bechtel and CH2MHILL and on Human Resources (Work Package 3) to PWC. Senior personnel from these companies are now embedded in the Materiel Strategy team and the wider DE&S, and are in the process of working with DE&S staff to define the ‘end-state’, design the transformation and plan its implementation. The Materiel Strategy team is closely managing the challenge of integrating services across all three companies. In January 2015, DE&S and the three Managed Service Providers agreed a Collaboration Charter which establishes the framework and principles on which the Managed Service Providers are being integrated into DE&S and sets out the collaborative behaviours which they are required to demonstrate under the terms of their contract. The approach is firmly based on all three providers working to a single integrated plan, collaborative behaviours and aligned commercial incentives.
Start date: 2011-05-02
End date: 2017-05-31
Schedule text: DE&S was established as a bespoke trading entity in April 2014. Managed Service Providers are under contract to support DE&S in developing plans to reach a ‘match fit’ end-state. The process of transformational change is to deliver a ‘match fit’ DE&S by April 2017.
Baseline: £23.00m
Forecast: £42.03m
Variance: 82.70%
Variance text: The 2014/15 budget was set prior to the decision to terminate the Government Owned Contractor Operated (GOCO) competition and the budget is being realigned to reflect the new programme as part of the Departmental planning process.
Whole Life Cost: £98.68m
WLCost text: The budgeted whole life cost was set prior to the decision to terminate the GOCO competition and the budget is being realigned to reflect the new programme as part of the Departmental planning process.
Sourcefile: IPA_2015.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.