22 May 2009
By Hollie Ewers
MPs have criticised the Ministry of Defence’s ‘usual failings’ of cost overruns and delays in its 20 biggest procurement projects.
The Public Accounts Committee’s Major projects report 2008 revealed that, over the 20 projects, there were combined delays of 96 months – the worst figure since 2003.
Two particular projects – Terrier, which will provide armoured combat vehicles, and Soothsayer, the new electronic warfare system – suffered from missed deadlines. This forced the MoD to buy interim vehicles and continue using near-obsolete equipment in Afghanistan.
The extra cost of the delays for the 20 projects was forecast to be £205m – taking the total cost to an estimated £28bn.
PAC chair Edward Leigh said: ‘What lies behind this are the same old failings, including both a lack of realism and unjustified optimism about what can be achieved, at what cost and by when.’
Although the MoD made reforms in 2001, the May 15 PAC report showed it had failed to solve recurring problems, such as poor management and underestimation of costs and timescales.
Defence minister Quentin Davies said: ‘Our troops are as well equipped as any professional armed forces in the world today. Delays to projects featured in the Major projects report, while regrettable, have not led to gaps in our present frontline capability.’
The report followed a separate review by the National Audit Office, which praised the MoD’s performance in supporting high-intensity operations under challenging conditions.
It revealed how the ministry had successfully provided around 300,000 personnel and 90,000 tonnes of freight to Iraq and Afghanistan over the past two years. However, it also highlighted the inconsistent meeting of targets for supply deliveries.
NAO head Tim Burr said: ‘The task of supporting operations in Iraq and Afghanistan is not an easy one. Despite this challenge, the MoD has had a number of successes.’ He added that ‘there is still more to do’.
