HC Deb 23 November 1994 vol 250 cc144-6W
Mr. Butler

To ask the Secretary of State for Defence if he will make a statement about defence agency status for the Defence Clothing and Textiles Authority.

Mr. Soames

The Defence Clothing and Textiles Authority became Defence Agency of the Ministry of Defence on 22 November 1994. The DCTA, although an organisation with tri-service responsibilities, is presently part of the Quartermaster General's department within the Army. It comprises a small headquarters at Andover and a number of interlocking business functions across the country; it employs a total of 447 staff comprising 13 military and 434 civilian staff.

The primary role of the DCTA is to provide an agreed range of clothing and textile products to meet the operational needs of the MOD and other defined customers within agreed standards, and in the most cost effective manner.

As the first chief executive, Brigadier R. H. T. Kirby CBE will be offered new opportunities to build on the current organisation's professional expertise and high performance standards. Through a more commercial approach, the chief executive will actively seek to improve the efficiency and value for money of his organisation and thereby fulfil the agency's aim of.providing its customers with an efficient service which.offers the best value for money.

The chief executive has been set the following key targets for financial year 1994–95:

  1. 1. To achieve 80 per cent. availability of stock from shelf.
  2. 2. 80 per cent. of research and development milestones to be met by the due date and within budget.
  3. 3. 80 per cent. of procurement to meet total planned lead time for delivery.
  4. 4. To develop the framework for a full customer satisfaction survey.
  5. 5. To establish the mechanisms required for full cost accruals accounting system.
  6. 6. Initiate action to formulate and develop plans for restructuring and collocation of the agency.
  7. 7. Complete national measurement accreditation service NAMAS of DCTA laboratories.
  8. 8. To remain within financial year 1994–95 cash allocation, incorporating current efficiency assumptions.
  9. 9. To initiate a review of the scope for further private sector involvement, aiming to complete implementation by April 1998.

I have arranged for copies of the agency's framework document to be placed in the Library of both Houses.

Mr. Sykes

To ask the Secretary of State for Defence if he will make a statement about defence agency status for the Royal Air Force signals engineering establishments.

Mr. Soames

The Royal Air Force Signals Engineering.Establishment—RAFSEE—became an agency of the Ministry of Defence on 22 November 1994. RAFSEE is based primarily at Royal Air Force, Henlow, with one division currently located at Royal Air Force, Wyton and due to move to Royal Air Force, Waddington in 1995. The establishment belongs to the Signals Units group which is part of Logistics Command, the headquarters of which is at Royal Air Force, Brampton.

The role of RAFSEE is to provide a quick reaction signals engineering capability for military operations worldwide. This work includes design, manufacture, installation and recovery for the full range of strategic and tactical communications, radar and information and electronic systems. It also extends to providing special signals equipment for the Royal Air Force's_ electronic reconnaissance squadron, and special avionic equipment for aircraft of the three services.

As the first chief executive, Air Commodore P. C. Ayee will be offered new opportunities to build on the current organisation's professional expertise and high performance standards. In maintaining RAFSEE's operational capability, the chief executive will actively seek to improve the efficiency and value for money of his organisation.

The chief executive has been set the following key targets for financial year 1994–95:

  1. 1. To deliver 100 per cent. of operational tasks to time.
  2. 2. To maintain 100 per cent. of core skills needed to support likely operations.
  3. 3. To deliver 70 per cent. of all tasks to time, an improvement of 10 per cent. over the previous year.
  4. 4. To put in place a system to monitor and report on the on the quality of delivered tasks.
  5. 5.To reduce costs per task manhour by five per cent.
  6. 6. To complete a competing for quality feasibility study on £7,970,000 of non-core business by 31 January 1995.
  7. 7. To produce shadow accrual accounts by 1 April 1995.

I have arranged for copies of the agency's framework document to be placed in the Library of the House.

Sir David Mitchell

To ask the Secretary of State for Defence if he will make a statement about defence agency status for the Army's logistic information systems.

Mr. Soames

The directorate of logistic information.system—Army—was established as a Defence agency on 21 November 1994 and will now be known as the Logistic Information Systems Agency—LISA. LISA will comprise a headquarters at Andover, alongside the quartermaster general's headquarters—QMG—and two main centres of activity at Bicester and Donnington where the base ordnance depots are located. LISA's initial strength will be 46 servicemen and 351 civilians.

The role of the agency is to enhance the logistic effectiveness of the Army in peace and war by providing information systems, services and support.

As the first chief executive, Brigadier A.W. Pollard will be given the authority, responsibility and opportunities to improve the quality of information systems support to Army logistics in a comprehensive, competitive and efficient manner. Building on the Government's successful competing for quality initiatives, he will be following an innovative approach to the involvement of the private sector in the non-core aspects of the agency's work. If study work confirms preliminary assessments it is envisaged that a partnering contract with a private sector supplier will be awarded by competition towards the end of 1995. Consideration is being given, within the bounds of Government policy and without detriment to military priorities, to including some novel revenue sharing arrangements in this contract with the partner. This will be achieved by exploiting the wider market potential offered by partnering and any under utilised, but unavoidable spare LISA capacity. The scope for offsetting LISA costs will thus have obvious value for money benefits to the taxpayer.

The chief executive has been set the following key targets for the first year of operation:

  1. 1. Meet targets laid down by QMG for the timeliness, cost and planning effectiveness of projects. Projects should be delivered within planned time and cost tolerance without adjusting the project plans.
  2. 2. By 1 April 1995, carry out a customer satisfaction survey, completeness and responsiveness of the services offered and set targets for improvement.
  3. 3. By 1 April 1995 introduce dummy invoicing for chargeable services provided by LISA.
  4. 4. Within the competing for quality framework, and in order to deliver CFQ efficiency savings, reach a decision by 1 April 1995 on a partnering agreement with the private sector or determine what other CFQ initiatives should be employed to achieve the desired savings and efficiencies.
  5. 5. By 31 December 1994 LISA will finalise its pre-CFQ initiative organisational structure and by 1 April 1995 will complete the associated internal changes.
  6. 6. LISA will introduce financial and business systems to enable the operation of a full cost accruals accounting system by 1 April 1995.
  7. 7. For financial year 1994–95 to operate within budgetary provision and achieve agreed output. By 1 April 1995 establish baselines for agency overheads and unit costs of chargeable output, as a more reliable means of measuring efficiency, and set targets for reductions.

I have arranged for copies of the agency's framework document to be placed in the Library of the House.

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