MoD projects over budget and years late

1 Jul 99
The top 25 equipment projects commissioned by the Ministry of Defence are expected to cost £2.8bn more than originally forecast and will enter service on average more than three and a half years late, according to a report from the National Audit Office.

02 July 1999

Of the 25 projects, 16 are expected to be completed over-budget and only two are likely to meet their original deadlines. The projects involved include the Eurofighter (£1.5bn over budget), the Merlin MK1 Maritime Helicopter (£815m over budget) and the Air-Launched Anti-Armour Weapon (ten years late).

The analysis is undertaken each year by the NAO, with the 25 largest defence equipment projects included. Seven projects were evaluated for the first time in this year's reports, but the NAO stressed that there was no evidence that newer projects are less susceptible to cost and time overruns.

A spokesman for the MoD said that the report covered the period until March 1998 and that subsequently the situation had improved. 'In July 1998, we introduced our Smart Procurement Initiative to address some of these issues. This should lead to a gradual improvement in the situation,' he said.

The Smart initiative involves the introduction of integrated project teams, clearly defined customer-supplier relationships and putting more resources into early project phases.


Did you enjoy this article?