MoD in £1.2 billion underspend...
The B Word ... That's why there aren't any Size 10 Flying Boots in the Stores then
You're not wrong! One of the reasons for this underspend will be the fact that DIO would not take any further funds in July 13 as they did not have capacity in their work services contract - yes, that's a whole 3 months after the start of the Financial Year with 9 months to go!
The Defence Infrastructure Organisation (DIO) is the biggest crock, ever! Along with its Regional Prime Contractors it is costing us at least 40% more than it would cost if we locally sourced infra services direct through the Station's leadership. However, even at 40% over the market rate we still can't spend the money as they don't have the capacity in their contracts.
Then there's DE&S - don't get me started on that cash cow. Both DIO and DE&S between them see our 4-5th biggest defence budget get reduced to the 30th most potent Armed Force in the world.
In my humble opinion, of course!
The B Word
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MoD in £1.2 billion underspend...
When seeking approval for a project the scrutiny process expects de&s to have 10-15% risk. As most projects have been kicked for contributing to the 38Bn overspend it follows that they will become pessimistic. All those 10% risk budgets have resulted in an in-year underspend. It doesn't necessarily mean the front line has got less stuff than it planned but less than it may have got if it was not so risk averse. In the grand scheme of things whilst the MOD didn't purchase more stuff the treasury probably shaved 1.2Bn off the 1.3Tn deficit.
Last edited by triboy; 13th May 2014 at 22:20.
