Departmental Contracts

Defence written question – answered on 23rd April 2008.

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Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

To ask the Secretary of State for Defence what contracts were awarded by his Department to (a) KPMG, (b) PricewaterhouseCoopers, (c) Ernst and Young, (d) McKinsey, (e) Deloitte and (f) other consultancy firms in each of the last 12 months; and what the (i) purpose and (ii) value was of each of these contracts.

Photo of Derek Twigg Derek Twigg Parliamentary Under-Secretary (Ministry of Defence) (Veterans)

The following information reflects contracts awarded for Management and Business Consultancy, Finance and Accountancy Consultancy, Corporate Governance and Audit Consultancy, and public-private partnership and Private Finance Initiative Consultancy support that have passed through a centralised approval process. The details do not contain contracts awarded by the MOD's trading funds or agencies or for other types of consultancy which are not held centrally.

Information in relation to contracts awarded to 'other consultancy firms' in the past 12 months is not held centrally and could be provided only at disproportionate cost.

However, summaries of MOD expenditure on External Assistance, which includes management and other types of consultancy since 1995-96 are available in the Library of the House.

The Ministry of Defence has limited internal consultancy resources, which it prioritises to support the Department's key business areas. The use of internal resources is always fully considered before engaging external consultancy assistance.

The Ministry of Defence recognises the benefits that can be gained from external consultancy assistance in driving forward its new management and business initiatives, but it is important that it is only commissioned when it can be demonstrated to be both appropriate, cost-effective and delivering value for money.

Details of contracts awarded in the last 12 months to the named companies are as follows:

Purpose Total contract value (£)
KPMG
MOD Streamlining (To design and help implement a programme to deliver the training, structural, behavioural, process and system changes required to Streamline the MOD Head Office and meet the required savings targets. In addition to this provide support to define and create a Corporate Services model for Defence) 4,000,000
Future Lynx Training Service Project Financial Services Support (To provide a synthetic training service for aircrew, ground crew and maintainers, and will include refresher and conversion to type training) 47,000
Corporate Financial Assistance Strategic Advice (External Assistance to provide a Strategic Advisory Service to the MOD's Maritime Industrial Strategy Team) 109,000
PricewaterhouseCoopers
Independent Review into the Nuclear Weapons Capability Sustainment 515,000
External Assistance for Blueprint Consultancy (To set out the strategic direction for the People, Pay and Pensions Agency (PPPA) ensuring a programme of change that is coherent, aligned and will achieve the desired end state by the agreed timeframe) 550,000
External Consultancy assistance for high level review of proposed new rates for MOD Employers Pension Contributions Payments 17,000
Benchmarking of Human Resources Shared Services (To measure and benchmark the efficiency and effectiveness of the delivery of key Human Resources processes that are delivered through Human Resources shared services in Service Personnel and Veterans Agency (SPVA). This will allow SPVA to benchmark itself against public and private sector peers, including MOD's People, Pay and Pensions Agency (PPPA), highlighting best practice) 25,000
Ernst and Young
No contracts awarded
McKinsey
No contracts awarded
Deloitte
Commercial Support for the Beyond Visual Range Air to Air Missile (BVRAAM) Project. (Provision of a short-term external commercial resource as part of the team to support a review of the BVRAAM Integrated Project Team) 46,000
External assistance Support to 16 Air Assault Brigade on Lean Transformation Programme—covering Support in applying the principles and techniques of Lean process design to the end to end support chain 113,000
Strategic Client Adviser (The Future Submarine Project Team requires impartial independent expert support in order to provide programme assurance to give confidence to the Team Leader and MOD stakeholders that the team's plans and activities make best use of the available resource) 2,000,000
Provide Independent financial review of the long term partnering agreement with BAE Systems 45,000
Independent Financial Review for future aircraft carrier (External Assistance to conduct an assessment of the Aircraft Carrier Alliance cost-model prior to the Future Aircraft Carrier (CVF) manufacture contract signature and to support to CVF Integrated Project Team and Commercial Project Enablement Team in analysis of the supporting Shipyard estimate) 550,000
Development of Flexible Resourcing Approach for Defence Equipment and Support External Assistance support to design and pilot a Flexible Resourcing approach within Defence Equipment and Support. Flexible Resourcing is an industry-tested approach for maximising the utilisation of people resource within an organisation 448,000
Enquiry by Design Event (External assistance advice for the provision of financial support in analysis of data with a view to testing the feasibility of a Defence Estates Project) 10,000
Defence Equipment and Support Director General Safety and Engineering (DGSE) PACE (Performance, Agility, Confidence, Efficiency) for Value Stream Analysis—requirement for Consultancy Support in applying the principles and techniques of lean process design to the end to end support chain 108,000
External assistance for the maritime industrial strategy corporate finance accountancy support 268,000

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