U.K. Eyes Changes In Defense Procurements

Photo: House of Commons

Oct 12, 2011 By Robert Wall Aviationweek.com

LONDON — The U.K. may establish a regulatory body to oversee sole-source defense procurements, although details of the changes will remain open for responses from industry and other interested parties until Jan. 6.

The move to revise sole-source contracting rules is one of several reform efforts under way at the British defense ministry aimed at improving operations. The reform recommendations were developed by David Currie, a member of the U.K.’s upper house of Parliament.

The defense ministry promises significant savings from the exercise, given that sole-source work covers around 40% of contracting activity. Peter Luff, minister for defense equipment, support and technology, says, “I would be disappointed if we couldn’t deliver savings rising to £200 million [$312 million] per year — although I expect this will take a number of years to reach its full value.”

As the government seeks outside input on Currie’s recommendations, it is particularly interested in his call for the creation of the Single Source Regulations Office. Luff says outside input is being sought not just on the creation of an independent office but also on “possible alternatives such as the strengthening of the existing cost assurance and analysis service.”

Another area of focus for the review of the so-called Yellow Book — which governs sole-source procurements — has been how to strengthen the involvement of small and medium-sized enterprises. As part of Currie’s reforms, those should see fewer reporting requirements and a simplified charging system.

The government plans to issue its final report on how to deal with sole-source procurements next year.