Key targets have been set for the chief executive of the Defence Storage and Distribution Agency for financial year 2006-07. Key targets are as follows:

Key Target 1

To meet the customers' requirements as negotiated and agreed in business agreements (BAs). This key target is broken down into the following sub-targets:

1a. For explosive materiel; to supply 95 per cent. of available maintained munitions within demand timescales.

1b. For non-explosive materiel; to supply 95 per cent. of issues to consumers, as forecast and agreed in BAs, to meet that element of the supply chain pipeline time (SCPT) for which DSDA has responsibility.

1c. To process within limits agreed with each individual customer, 98 per cent. of all receipts that conform to the specifications laid down in the contract and/or materiel regulations.

Key Target 2

KT2 is an efficiency measure for continuous performance improvement to achieve a 2.5 per cent. (net of 2.5 per cent. inflation factor) reduction in the unit cost of output (UCO) in financial year 2005-06 (based on financial year 2004-05) while maintaining an effective level of services to the customers in accordance with the business agreements (BAs).

Key Target 3

The value of inventory written off as a result of DSDA's actions to be less than the levels agreed within each business agreement (BA). This key target is broken down into the following sub-targets:

3a. The value of explosive materiel written off as a result of DSD A's action to be less than 0.02 per cent. of the explosives inventory. This includes associated weapons build components that are integral to the weapon system or munitions (including non-explosive components), tools, test equipment and materials that belong to the integrated project teams (IPTs), which are in the custody of DSDA.

3b. The value of non-explosive materiel written off as a result of DSDAs action to be less than levels agreed within each BA.