The transformation process of how the Ministry of Defence (MOD) acquires equipment and services has been hailed as good news for small and medium-sized businesses.
The transformation through the MOD’s current organisation, Defence Equipment & Services (DE&S), is now on the fast track, according to Andrew Kerr, vice chairman of the Federation Of Small Business Defence Committee and director of Birmingham-based Englands Safety Equipment, following the Defence Secretary’s announcement on December 10 2013 and under the leadership of Bernard Gray (chief of defence materiel).
Speaking at a recent industry forum, Mr Gray highlighted this was an opportunity for the British defence industry to ensure that it was fit to supply not only national but also international markets by providing what their customers needed on time and on budget; a message that seemed to be welcomed and for many years long awaited by those eager to see reform.
DE&S is to become a bespoke trading entity, while staff will remain civil servants but operate with greater freedom than previously to provide a more business-like approach to its services.
Under the new acquisition system, the front line commands of the MOD need to know what they require and what they can afford with industry being responsible for delivering on time and on budget. DE&S is to have a more efficient and business-like approach to both their customers (the front line commands) and their suppliers (industry).
Mr Kerr believes the cultural change for both industry and the MOD will be profound and the task of reform that has defeated some who have tried in the past is considerable, as no doubt many of the outdated practices and procedures that have given so much concern to many will be have to be challenged and changed.
Mr Kerr said he believed Mr Gray appears to stand out from those reformers of the past, as “he speaks with a passion and commitment many have not seen before and most importantly, has a determination to ensure change is bought about”.
He added that as a former head of small medium enterprise (SME) seeking to offer innovative solutions to government, he is aware of the potential benefits SMEs can bring in terms of innovation ability to the MOD and this has been recognised by the SMEs by ensuring SME representatives are involved in his initial proposals for change, unlike his predecessors.
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Mr Kerr said SMEs are acutely aware of the need to continually respond to customer and market changes so their experiences may well assist the MOD to acquire the desired more business-like approach to acquisition.
Also that SME trade associations are understandably seeking to engage actively in the proposed reforms with proposed solutions for delivery of enhanced equipment and services.
He added: “This is a crucial time for the British defence industry and also a time of great opportunity if SMEs can demonstrate effectively they can provide enhanced products and services to the MOD.
“Furthermore the changes which MOD is seeking are the type SMEs are used to performing.”
Englands Safety Equipment specialise in the design and supply of bespoke equipment to various law enforcement agencies and special forces throughout the world. Its products have been recognised for their design by the receipt of numerous national awards, including Queen’s Awards, Prime Minister’s Millennium Product awards and DTI SMART awards.
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