The Major Projects Report 2003 provides information on progress made by the Ministry of Defence in procuring major defence equipment against cost, time and technical performance targets. It covers 30 projects split, according to Smart Acquisition principles, between the 20 largest projects on which the main investment decision has been taken, and the 10 largest projects yet to reach that point. For the 20 largest projects, costs are forecast to have increased by Ap3.1 billion in the last year, and are now 6.1 per cent over their approved costs. Difficulties on four older projects (which predate the introduction of Smart Acquisition) account for the majority of cost and time overruns. Following on from a NAO report on this topic (HCP 195, session 2003-04; ISBN 0102926581) published in January 2004, the Committee's report examines four main issues: the impact of the large cost overruns and delays; departmental risk management; ways of developing a more constructive relationship between the Department and industry; and lessons that need to be learned to avoid such poor procurement performance being repeated in future.In paragraph 9 at the bottom right-hand corner, it states: aquot;The year 2002-03 saw cost of ownership data being captured from ... I built a model on a spreadsheet, and it was quite a shocking experience to know how expensive it is to run a car.
|Title||:||Ministry of Defence,Major Projects Report 2003,Forty-Third Report of Session 2003-04. ,Report,Together with Formal Minutes,Oral and Written Evidence|
|Author||:||Great Britain: Parliament: House of Commons: Committee of Public Accounts|
|Publisher||:||The Stationery Office - 2004|