MOD procurement savings – delivered by GPS, underwritten by Treasury!

The UK Finance Minster (Chancellor) made announcements yesterday about government spending for 2015/16. He didn’t have to do this now but it is all politics – challenging the Labour opposition by saying in effect, “so what would you cut?”

The big news comes from Philip Hammond,  the Minister of Defence,  who in a video to his staff (see below) says a fair bit about efficiencies then drops this bombshell (as it were):

“Another £300 million will come from an innovative deal with the Cabinet Office Efficiency and Reform Group and the Government Procurement Service who will take over responsibility for some of our commodity and IT procurement and in conjunction with the Treasury guarantee the agreed level of savings”.

Oh my goodness this is going to be fun!

We’re either going to find out that MOD procurement really was as bad as Cabinet Office obviously think it was / is, or we’re going to see some tremendous arguments, as GPS de-scope MOD’s requirements, reduce service levels, kick suppliers around.. and all with the £300M under-written by Treasury!

Let's see what the SLA between MOD and GPS looks like - that should be interesting as well. I don’t know whether this is genius or madness but my resolution to stay away from the central government procurement mayhem this week has clearly cracked with this news.

Voices (2)

  1. Dave Orr:

    It isn’t the Minister on the video…he has been replaced by the latest technology human drone….”resistance is futile, your budget will be assimilated”!

  2. Bill Atthetill:

    It’s no wonder Philip looks so, erm, ecstatic on the video. (I definitely saw him raise an eyebrow.) Likewise, I think we’d all like to see the devil in the detail in that SLA. I’ll bet my right arm that each entity will spend a few pennies with their favourite lawyers scribing their version of the document…

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