Britain’s Ministry of Defence could run a competition to outsource
its 14 billion pound ($22 billion) annual procurement and support
organization as early as 2013, according to the country’s minister for
armed forces.
The possible 2013 competition to partially privatize the Defence Equipment and Support (DE&S) organization is expected to attract some of the world’s largest program management companies.
Bechtel, KBR, Fluor, Jacobs Engineering, Deloitte Touche Tohmatsu and Serco were among 15 companies selected by the MoD this year for market-testing talks. The talks will determine whether a government-owned, contractor-operated (GOCO) or an executive non-departmental public body (ENDPB) is the more effective way forward.
The less-favored ENDPB scheme would see DE&S and its employees remain in the public sector, but at arm’s length from the government. Industry would be involved as a strategic partner.
The government is driving the transformation of DE&S because it holds the organization partly responsible for a string of delays and overspending on key equipment programs, such as the A400M transport plane, the Nimrod MRA4 reconnaissance aircraft and the Type 45 destroyer.
Read More.............
The possible 2013 competition to partially privatize the Defence Equipment and Support (DE&S) organization is expected to attract some of the world’s largest program management companies.
Bechtel, KBR, Fluor, Jacobs Engineering, Deloitte Touche Tohmatsu and Serco were among 15 companies selected by the MoD this year for market-testing talks. The talks will determine whether a government-owned, contractor-operated (GOCO) or an executive non-departmental public body (ENDPB) is the more effective way forward.
The less-favored ENDPB scheme would see DE&S and its employees remain in the public sector, but at arm’s length from the government. Industry would be involved as a strategic partner.
The government is driving the transformation of DE&S because it holds the organization partly responsible for a string of delays and overspending on key equipment programs, such as the A400M transport plane, the Nimrod MRA4 reconnaissance aircraft and the Type 45 destroyer.
Read More.............
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