25 May 22. Outsourcing and treatment of contracted staff – Ministry of Defence ‘must do better’, says Defence Committee.
The Ministry of Defence’s outsourcing practice of ancillary services, such as firefighting and vehicle maintenance, is ‘not exemplary’ and the MoD pays little consideration to providing services in-house, says the cross-party Defence Committee in a report published today (Thursday).
The report states that “contractors drop standards and squeeze employees to raise their profit margin” but warns that the MoD is not always willing to step in and enforce expected standards.
With reference to the performance of contractors including Capita, the report says it is “absurd” the MoD is not allowed to look at contractor’s previous performance in deciding on contract awards. The report recommends the Government remedy this situation before the end of the current Parliament.
The Committee’s report focusses on the Defence Fire and Rescue Service (DFRS) as a case study to examine the wider implications and lessons of MoD outsourcing. The report raises concerns over Capita’s involvement in DFRS, their wider record, and questions the approach to manning levels. The report calls on the Ministry of Defence to review Capita’s performance and consider measures to ensure the DRFS is carried out more satisfactorily.
Rt Hon Mark Francois, Member of the Defence Committee, said: “The performance of certain sub-contractors is well-known both within industry and the defence community. Given the MoD’s determination to press ahead with outsourcing ancillary services, it is an absurd state of affairs that it is not possible to take into account a bidder’s past performance. Ministers should use the Procurement Bill announced in the Queen’s speech to change the rules for awarding new contracts”.
The report examines the treatment of outsourced staff, including in their terms and conditions of employment. The report expresses regret that sub-contracted staff often feel excluded from the wider defence family even though their roles are integral to the service.
The Committee’s report recommends the Ministry of Defence act to ensure that contracted staff receive comparable employment contracts to staff directly employed by the MoD. The MoD should also ensure that this is a standard part of the process when considering bids for contracts.
House of Commons and House of Lords Hansard Written Answers
EU Defence Policy
Question for Ministry of Defence
Jamie Stone
Liberal Democrat
Caithness, Sutherland and Easter Ross
Commons
To ask the Secretary of State for Defence, if he will make an assessment of the implications for his policies of the EU’s Action Plan on Military Mobility.
Answer
James Heappey
Conservative
Wells
Commons
Answered on 25 May 2022
As a non-EU country, the UK is not subject to the EU’s Action Plan on Military Mobility but works closely with European partners on military mobility issues through NATO and the Northern Group. Moving military personnel and assets across Europe quickly and efficiently remains important, and the UK supports broader efforts that are coherent with NATO’s and the Northern Group’s.
Defence Equipment
Question for Ministry of Defence
Mr Kevan Jones
Labour
North Durham
Commons
To ask the Secretary of State for Defence, pursuant to the Answer of 16 May 2022 to Question 637 on Defence equipment, what the inaccuracies are in the Public Accounts Committee report.
Answer
Mr Ben Wallace
Conservative
Wyre and Preston North
Commons
Answered on 25 May 2022
As indicated in the answer provided to the right hon. Member on 16 May 2022 to Question 637, the Department is in the process of raising its concerns directly with the Public Accounts Committee.
European Fighter Aircraft: Radar
Question for Ministry of Defence
Mr Kevan Jones
Labour
North Durham
Commons
To ask the Secretary of State for Defence, what his most recent estimate is of the date by which the AESA radar on Typhoon aircraft will achieve initial operating capability.
Answer
Jeremy Quin
Conservative
Horsham
Commons
Answered on 24 May 2022
The Active Electronically Scanned Array (AESA), the European Common Radar System Mark 2 (ECRS Mk2), is planned to be integrated onto the frontline RAF Typhoon Force by 2030 through a wider four-nation Eurofighter programme called Phase 4 Enhancement (P4E). As well as requiring the ECRS Mk2 hardware and software development and embodiment, the programme remains subject to further funding and programmatic agreements between the four partner nations. The next phase of the programme completes development of the prototype of the new radar and integrates it onto a UK Typhoon trials and development aircraft operated by BAE Systems.
For the RAF Typhoon Force to declare initial operating capability as a capability milestone, it will also require commensurate investment in people, information, training and infrastructure which continues to be refined. This will ensure the UK receives maximum capability benefit from the new equipment.
Trident Submarines: Procurement
Question for Ministry of Defence
John Healey
Labour
Wentworth and Dearne
Commons
To ask the Secretary of State for Defence, how much and what proportion of the £10 billion contingency provided by the Treasury for the Dreadnought programme has been spent as of 19 May 2022.
Answer
Jeremy Quin
Conservative
Horsham
Commons
Answered on 26 May 2022
The contingency draw-down figure for Financial Year 2021-22 will be included in the Ministry of Defence (MOD) Annual Report and Accounts after the conclusion of the annual audit.
Up to March 2021, the MOD has drawn-down £865 million, just under nine per cent, of the HMT-held Dreadnought contingency.