A new agency is to be created next year to offer ‘faster, cheaper and better’ delivery of military equipment to the forces.
According to defence procurement chief Sir Robert Walmsley, the agency will put into action the Government’s drive for ‘smart procurement’.
The new agency’s blueprint will be published next March. Its creation follows a study by consultancy McKinsey into the private sector to see how to improve procurement.
‘While many projects already achieve their goals for performance, cost and time, too many fail,’ Walmsley said. The agency ‘will clarify our relationship with our customer’.
It will be based on the MoD’s Procurement Executive (PE) sited mainly at Abbey Wood near Bristol. The agency will not have trading status and the PE’s 6,000 staff will remain Ministry of Defence employees. Walmsley promised there would be no job losses.
The agency will have more scope for flexibility and innovation, said Walmsley, who will become ‘personally accountable’ to the MoD for procurement projects.
A key ‘smart procurement’ innovation will be the introduction of MoD credit cards to allow speedier purchase of routine items.