Improving value and certainty in defence procurement

Abstract

Defence procurement is notoriously complex and risky. This article analyses the factors which are unique to defence and those which are general to the public sector. It proposes some practical improvements for UK defence procurement (and overseas equivalents), across its value chains and suppliers, and also within the public sector.

Notes

*NHS National Programme for IT is a huge project launched in 2002 to provide a national interlinked repository for health information. It broke many of the key precepts for procurement and project management. It is years late and billions overspent. Contractors have gone out of business, or reneged on their contracts. The coalition government would like to cancel major elements but faces substantial compensation payments. Astute submarines and Nimrod reconnaissance aircraft were contracted by MOD with BAE Systems who later negotiated more money to complete the work. The coalition government has now abandoned the Nimrod project.

Additional information

Notes on contributors

Tom McGuffog

Professor Tom McGuffog MBE was an executive director in the food industry. He was a nonexecutive director of former UK Defence Procurement Agency and the Defence Logistics Organization as well as the former UK NHS Purchasing and Supply Agency.