HL Deb 16 November 2004 vol 666 cc56-7WS
The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Bach)

My right honourable friend the Minister of State for Defence (Mr Adam Ingram) has made the following Written Ministerial Statement.

I am pleased to announce that the Ministry of Defence has signed a contract with Atkins in respect of the Systems House role for the Future Rapid Effect System (FRES).

The Ministry of Defence will be providing strategic direction, with Atkins, which is a major British company in this field, leading a number of key activities designed to inform MoD's major programme decisions during the assessment phase. Atkins's independence from product will enable it to take an objective view of the ideas and technologies which may be applicable to FRES, and marry new approaches to the knowledge that we already have as a result of previous work. Its comprehension of the risks inherent in complex systems of systems integration will be vital in determining feasible solutions. In addition, it will be managing a programme of risk reduction activities, mitigating the risks of certain technologies to determine if they are suitable for FRES. Technologies will be inserted into FRES only when they are sufficiently mature; whether initially or as part of an incremental technology insertion programme. The proactive management of these diverse de-risking activities will be key to achieving a manageable level of risk at the Main Gate investment point.

We will seek maximum appropriate competition during all programme phases, enabling industry to engage at all levels, within the context of our defence industrial policy. We will be transparent and inclusive with industry from the earliest possible stage in terms of the defence industrial policy factors that may affect acquisition decisions. To this end, we have published a paper setting out our plans in this respect and identifying constraints where they apply. Understanding the broad factors that are likely to impact on those decisions will enable industry to make informed judgments on whether they wish to bid and, if they choose to do so, to ensure that their bids take due account of the declared criteria.

Finally, FRES is a complex programme, with obvious tension between competing demands such as capability, time to delivery and affordability. However, the award of this contract to Atkins provides us with the necessary industrial expertise and realism to examine those competing demands in detail and to make informed decisions in order to achieve the optimum FRES solution.