§ Dr. Moonie
[holding answer 2 March 2000]Actual cash expenditure on the DESO budget for the last two years has been:
£million Expenditure Receipts Net operating costs 1997–98 55.810 41.430 14.380 1998–99 45.290 29.280 16.010
Serial Description of key target Performance KT3 To exceed 90% of customers' perceived satisfaction of requirements Not Achieved. The Agency achieved a score of 87% overall customer satisfaction in an independent survey, missing the testing target by only 3%. There were many positive comments, all indicating a customer perception that DCTA had improved availability, fitness for purpose and communication during the period. Further development of the helpdesk, communication, shorter pipeline times and maintained improvement of product availability were the major lessons learned, from which several business initiatives have been implemented by FY 99/00. A more detailed Customer survey is being conducted in the present year (FY 99/00) to assess the impact of these initiatives.
Forecast cash expenditure on the DESO budget this year is:
£million Expenditure Receipts Net operating costs 1999–2000 45.225 32.807 12.418
The DESO budget has not yet been set for later years.
These net operating costs are more than offset by benefits to the Defence budget, estimated at over £400 million a year, arising from DESO's activities. These benefits include an overall reduction in overhead costs for UK Procurement as a result of export orders, and receipts from Commercial Exploitation Levy and disposal of surplus MOD equipment.