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To ask the Secretary of State for Defence which external consultants are used by his Department regarding the formulation of its policy on reforming defence procurement; and what the cost to the public purse has been for each such consultant.
To ask the Secretary of State for Defence which external consultants are used by his Department regarding the formulation of its policy on reforming defence procurement; and what the cost to the public purse has been for each such consultant.
[holding answer 16 December 2013]: The Ministry of Defence has used six external consultancy companies during the Concept and Assessment Phases of the Materiel Strategy and Customer Design Programmes. The Concept Phase ran from May 2011 to April 2013; the Assessment Phase ran from April 2013 to December 2013. The consultancy costs for the Concept Phase, which analysed a number of potential operating models for the future of DE&S, were £11.2 million. The consultancy costs for the Assessment Phase, which developed the GOCO option, the internal DE&S Plus option, and the Customer Capability within Head Office were some £17.7 million. Of this £17.7 million, the consultancy costs specifically relating to the GOCO competition were £7.4 million.
Consultancy support provides vital specialist expertise, knowledge and skills that are not available within the Department. The breakdown against the six companies involved is as follows:
| £
million | |||
| Company | Concept
Phase | Assessment
Phase | Total |
| Booz | 5.3 | — | 5.3 |
| CVA | 0.5 | — | 0.5 |
| LEK | 3.5 | 5.8 | 9.3 |
| KPMG | 1.0 | 7.3 | 8.3 |
| HSF | 0.8 | 2.8 | 3.6 |
| Jacobs | 0.1 | 1.8 | 1.9 |
| Total | 11.2 | 17.7 | 28.9 |
| Note: These figures are estimates as at 12 December, rounded to the nearest £0.1 million. The final costs will be dependent on submission of final invoices from the companies involved. |
As the Secretary of State for Defence, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), announced on 10 December 2013, Official Report, columns 146-48, we will build on the DE&S Plus proposition to transform DE&S within the public sector, setting it up as a bespoke central Government trading entity from April 2014.