§ Mr. Keith SimpsonTo ask the Secretary of State for Defence if he will make a statement on the basis for his Department's assumption that Smart procurement will achieve savings of two per cent. or £2 billion. [50958]
§ Mr. George Robertson[holding answer 17 July 1998]The estimate of Smart procurement cost savings over the next 10 years, amounting to £2 billion, has been compiled in consultation with industry and is based on the progressive application, to a range of existing and planned equipment procurements, of the acquisition reforms announced as part of the Strategic Defence Review. The greatest impact of the reforms will be achieved on procurements which are currently in their early formative stages and therefore most open to change.
§ Mr. Keith SimpsonTo ask the Secretary of State for Defence how he intends to implement the Treasury's proposal for least cost procurement. [50955]
§ Mr. George Robertson[holding answer 17 July 1998]The term "least cost procurement" is not recognised; the Ministry of Defence pursues a policy of value for money procurement. The Strategic Defence Review included a radical reappraisal of the ways in which we carry out defence procurement. The resulting package of measures, grouped under the banner of "Smart Procurement", aims to make defence procurement faster, cheaper, and better.