Procurement problems for the Ministry of Defence

We highlighted an excellent, if slightly surprising, story article earlier in the week about the payment times of the UK's Ministry of Defence and how such great performance, if copied across government and the private sector could really help businesses and the U economy.

Today's Independent ( http://www.independent.co.uk/news/business/ ) carries 2 stories in very short order detailing developments in the Ministry of Defence's transformation initiatives.

The uppermost article (on the Independent's screen)  ( http://www.independent.co.uk/news/business/news/mod-sets-sights-on-serco-and-capita-to-reform-supplies-9051822.html ) highlights the Secretary of State's intent to build capability within the current defence procurement body, the Defence & Equipment Support organisation, following on from a failed previously initiative.

The second article ( http://www.independent.co.uk/news/business/news/mod-in-new-retreat-over-bid-to-enrol-big-business-9047796.html ) covers the story of a problem with a bid for the logistics commodities services for Defence.

Two significant issues resulting from reading both articles:

1. In the first article the involvement of Serco is mentioned both in the title and the narrative.  Does this mean that the previous issues that government had with Serco have been resolved?

2.  The second article highlights the withdrawal of a bidder from the bidding process and highlights parallels with the GoCo initiative.  However, more importantly is the question of timing, following on from the comment regarding timing:

"Sources said a major problem for the LCST deal is that many companies that might have been interested had instead been focusing on the DE&S contract through most of 2012 and 2013. When that failed, they did not have enough time to look at the less meaty logistics work, which also includes revamping storage facilities and inventory management techniques that date back to the 1940s."

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