HC Deb 18 July 1969 vol 787 cc199-203W
Mr. Marples

asked the Secretary of State for Defence of the products procured by his Department regularly for three years or more, what proportion has, within the last three years, been specifically reviewed to evaluate product design against present need and potential cost reduction.

Mr. John Morris

The scrutiny of all operational requirements includes an assessment of the potential trade-off between specification and cost. In particular, value analysis techniques have been applied intramurally both at the design stage and to production equipment, and in addition a requirement to apply value engineering techniques has been introduced into appropriate contracts.

A special study is being made to determine the optimum organisational structure within the Ministry for the application of value analysis techniques to all aspects of design and procurement.

Mr. Marples

asked the Secretary of State for Defence what committee exists within his Department to co-ordinate procurement policies; what is its composition and terms of reference; and how often it meets.

Mr. John Morris

There is no single committee to co-ordinate procurement policy, in the wider sense, within the Ministry of Defence. Defence procurement policy generally is co-ordinated by the Second Permanent Under-Secretary of State (Equipment).

The Director General of Defence Contracts, who represents the Ministry of Defence on the Official Committee on Public Sector Purchasing and the Procurement Policy Committee, is responsible for ensuring that Ministry of Defence procurement is carried out in accordance with Government purchasing policy. He meets regularly with his purchasing directors and his directors of administration and accountancy to co-ordinate the purchasing policy and methods followed by the Defence Contracts organisation.

Mr. Marples

asked the Secretary of State for Defence whether manuals of procurement instructions and regulations are provided for procurement officers in his Department; and what arrangements are made to ensue compliance.

Mr. John Morris

Instructions and regulations governing procurement exist in various forms covering general policy and detailed procedure. Compliance is ensured by normal line management, and contract managers regularly scrutinise procedures followed in individual cases.

Mr. Marples

asked the Secretary of State for Defence what are the salaries of the most senior officer with full-time responsibility for procurement, and of those reporting directly to him.

Mr. John Morris

The annual salaries of the officers concerned are as follows:

£
Director General of Defence Contracts 5,500 + £125 London weighting in each case
Director of Contracts (1) 5,080
Director of Contracts (2) 5,080
Director of Contracts (Administration) 4,950
Director of Contract Accountancy 4,950,

These rates are subject to adjustment in the light of the Government Statement in the House of Commons on 11th July, 1969, on the pay of the Higher Civil Service.

Mr. Marples

asked the Secretary of State for Defence what proportion of procurement staff in his Department are

EXECUTIVE AND CLERICAL STAFF
Directorate Directorate 1 Directorate 2 Administration Accountancy Total
Director General … … — — — — 1
Director … … 1 1 1 — 3
Deputy Director (P.E.O.) … 4 4 — — 8
Assistant Director (S.C.E.O.) … 11 7 2 — 20
Chief Executive Officer … … 3 — — — 3
Senior Executive Officer … … 26 27 5 — 58
Higher Executive Officer … … 53 52 9 — 114
Executive Officer … … 99 147 18 3 267
Clerical Staff … … 201 209 78 22 510
Total … … 398 447 113 25 984
PROFESSIONAL AND TECHNICAL STAFF
Directorate Directorate 1 Directorate 2 Administration Accountancy Total
Director … … — — — 1 1
Assistant Director … … — — — 3 3
Chief Accountant … … — — — 14 14
Senior Accountant/Accountant … — — — 51 51
Recording Staff … … — — — 57 57
Patent Staff … … 2 — — — 2
Visiting Inspectorate … … 12 — — — 12
Timber Inspectorate … … 2 — — — 2
Custodian of Patterns … … 1 — — — 1
Technical Grade II … … — 2 — — 2
Total … … 17 2 — 126 145
Grand Total … … 415 449 113 151 1,129

2. The present organisation which was set up earlier this year by merging, on a functional basis, the former separate Navy, Army and Air Force Contracts Directorates, is at present undergoing a comprehensive review in the light of current and future needs. It is not possible to give meaningful comparisons with previous years on the same basis. The

late entrants into the Civil Service with more than one year's previous commercial experience of procurement.

Mr. John Morris

The information required to answer this Question is not readily available and cannot be produced without disproportionate effort, but the number is likely to be small.

Mr. Marples

asked the Secretary of State for Defence what is the establishment, by numbers of staff in each grade, of each directorate or section concerned with procurement; and what has been its average strength in each of the past three years.

Mr. John Morris

The current establishment of the Director-General of Contracts is as follows:

following figures indicate average strengths of the three Service Contract Departments prior to the reorganisation:

Navy Army Air Force Total
1967 499 433 108 1,040
1968 554 438 110 1,102
1969 576 434 107 1,117

Mr. Marples

asked the Secretary of State for Defence what is the average length of service in the procurement function of staff currently allotted to it.

Mr. John Morris

Executive contracts staff: about 10 years.

Professional Accountants: about 12 years.

Clerical staff have been excluded as a large proportion have been in the service for a very short time and their inclusion would distort the general picture.

Mr. Marples

asked the Secretary of State for Defence to what extent the same organisation and staff of his Department is required to handle negotiated procurement and competitive tendering; and what proportion of staff is allocated to each.

Mr. John Morris

There is no deliberate segragation of procurement by negotiation and competitive tendering respectively and staff are trained to function in both fields.

Mr. Marples

asked the Secretary of State for Defence to which professional institutes and institutions procurement staff belong; and how many of the staff belong to each of these professional bodies.

Mr. John Morris

  • Institute of Purchasing and Supply: 3 Fellows, 11 Members.
  • British Institute of Management: 4 Associate Members.
  • Value Engineering Association: 3 Members.
  • Institute of Chartered Accountants: 42 Fellows, 13 Members, 6 Associates.
  • Institute of Cost and Works Accountants: 2 Members, 3 Associates.
  • Association of Certified and Corporate Accountants: 1 Fellow, 3 Associates.
  • Institute of Internal Auditors: 1 Member, 1 Associate.
  • Chartered Institute of Secretaries: 2 Fellows, 1 Associate.
  • Corporation of Secretaries: 1 Fellow.
  • Institute of Work Study Practitioners: 1 Associate Member.
  • Royal Institute of Public Administration: 1 Member.
  • Royal Institute of Naval Architects: 1 Associate.
  • Royal Institute of Chemistry: 1 Associate.
  • Institute of Electrical Inspectors: 1 Associate.
  • Royal Society of Health: 1 Associate.