On the major programmes in which I was involved, the contracts allowed us a specified maximum percentage profit, the MOD audited our books and any excess profit would be recovered. How many other industries have their costs analysed by their customers who can then refuse to pay ?
Quite right. One of the most robust MoD policies. And everything is (or was) transparent in the QMAC schedules.
The problem is variable implementation of policy, whereby MoD allows unqualified staff to self-delegate, and they are encouraged to sign off and make payment before the job is complete if it means meeting the Time and Cost elements of Time, Cost and Performance. Further down the line their successors have to ask for more money and delay occurs....... The worst example of this was the Nimrod MRA4 2 Star condoning it. It's one of the reasons why MoD and Government don't want a public inquiry.
The main problem with the Telegraph article is he doesn't know why MRA4 was cancelled. On the other hand, if he did he probably wouldn't be allowed to publish!