Defence Board 'to OK privatised procurement'

22 June 2012 defencemanagement.com

The Defence Board is to decide today on whether or not to approve plans to allow private sector firms to run the Ministry of Defence's procurement arm, it has been reported.

Chief of Defence Materiel Bernard Gray has devised a new Materiel Strategy which includes a series of proposals for the future management of Defence Equipment and Support (DE&S).

DE&S has come under fire in recent years following a series of multi-billion pound procurement overspends and delays, notably the Typhoon, Type 45 Destroyer and aircraft carrier programmes.

Gray's new strategy is said to include a recommendation that DE&S, based in Bristol, be reorganised according to the government-owned contractor-operated, or GOCO, model similar to the one already in place at the Atomic Weapons Establishment.

This would see a private sector partner responsible for the day-to-day running of DE&S, including the purchase of military equipment and supplies.

A report in The Times claimed that the Defence Board was likely to approve the recommendation at a meeting today.

A source quoted in the paper said: "Most opinion formers in the MoD, including the Secretary of State, believe that the GOCO model is, in principle, the best option."

Ministerial approval of any decision is expected later this year.