ORAC
4th Jul 2006, 06:02
FT: Merger of two defence agencies confirmed
Plans to merge the two big agencies that spend almost half of the defence budget were confirmed by the government yesterday as the minister in charge of weapons-buying called for the defence industry to provide a better service. As reported by the FT last week, the Defence Procurement Agency, which buys weapons, and the Defence Logistics Agency, which supports the military with maintenance and training, will merge. The government is depicting the move as a crucial step in transforming the way the UK buys arms.
"These have been ideas that industry has been asking for," said Lord Drayson, minister for defence procurement, yesterday. "We expect industry to respond [and] to reshape itself to be able to provide a better serviceto us."
The shift in the approach to arms buying was signalled by the defence industrial strategy white paper, published in December. It said the government would change from an approach in which one agency would buy weapons, which would then be supported and maintained by the military, to one that emphasised managing the systems during their life.
The decision was announced along with a report recommending the merger from Tom McKane, a senior defence official. The report said the UK's defence acquisition system "has a history of suffering from a conspiracy of optimism".
The review considered whether the procurement and support system should be outsourced to the private sector. But it said there was not enough evidence to demonstrate this would be more effective than keeping it in-house. However, it said the new organisation should look for areas where buying services from the private sector would secure better value for money.
Lord Drayson said a shift was needed in part to make sure the military had weapons to respond to threats that were changing rapidly.
Officials said a leadership for the combined agency, which has not yet been named, should be in place by next April. It should be operational in April 2008.
The government said it would bring together parts of the two agencies in the Bath-Bristol area. This move would lead to the loss of 360 posts and save £200m over 25 years, officials said. The two agencies together employ more than 24,000 people.
Prospect, the trade union claiming to represent 15,000 civil servants in the Ministry of Defence, said it would consult its members about industrial action to stop the closures and transfers.
The MoD also said the headquarters of all land forces would be brought together on one site at Andover. That is expected to lead to the loss of 240 civilian jobs and 108 military posts.
Plans to merge the two big agencies that spend almost half of the defence budget were confirmed by the government yesterday as the minister in charge of weapons-buying called for the defence industry to provide a better service. As reported by the FT last week, the Defence Procurement Agency, which buys weapons, and the Defence Logistics Agency, which supports the military with maintenance and training, will merge. The government is depicting the move as a crucial step in transforming the way the UK buys arms.
"These have been ideas that industry has been asking for," said Lord Drayson, minister for defence procurement, yesterday. "We expect industry to respond [and] to reshape itself to be able to provide a better serviceto us."
The shift in the approach to arms buying was signalled by the defence industrial strategy white paper, published in December. It said the government would change from an approach in which one agency would buy weapons, which would then be supported and maintained by the military, to one that emphasised managing the systems during their life.
The decision was announced along with a report recommending the merger from Tom McKane, a senior defence official. The report said the UK's defence acquisition system "has a history of suffering from a conspiracy of optimism".
The review considered whether the procurement and support system should be outsourced to the private sector. But it said there was not enough evidence to demonstrate this would be more effective than keeping it in-house. However, it said the new organisation should look for areas where buying services from the private sector would secure better value for money.
Lord Drayson said a shift was needed in part to make sure the military had weapons to respond to threats that were changing rapidly.
Officials said a leadership for the combined agency, which has not yet been named, should be in place by next April. It should be operational in April 2008.
The government said it would bring together parts of the two agencies in the Bath-Bristol area. This move would lead to the loss of 360 posts and save £200m over 25 years, officials said. The two agencies together employ more than 24,000 people.
Prospect, the trade union claiming to represent 15,000 civil servants in the Ministry of Defence, said it would consult its members about industrial action to stop the closures and transfers.
The MoD also said the headquarters of all land forces would be brought together on one site at Andover. That is expected to lead to the loss of 240 civilian jobs and 108 military posts.