Defence Evaluation and Research Agency (Hansard, 8 March 2000)

§ Dr. Moonie

This is a matter for the Chief Executive of the Defence Evaluation and Research Agency. I have asked the Chief Executive to write to the right hon. and learned Member.692W year following a mock assessment in September 1998 which highlighted the need for further work on the evaluation of training and development taking place within the organisation. The formal assessment was carried out in March 1999, and the Agency was awarded its accreditation in July 1999, well ahead of the overall MoD deadline. In the light of revised guidance from the MoD Framework Team, only 4 Key Targets were published for the Agency in 1999–2000, and the evidence to date indicates that each Target will be achieved.

Letter from John Chisholm to Mr. Menzies Campbell, dated 6 March 2000: I have been asked to reply to your parliamentary question about the Defence Evaluation and Research Agency's (DERA) targets for 1998/99. A list of the key targets for 1998/99 and details of which ones were and were not achieved, together with an explanation of the factors affecting the outcome in each case, is given in Annual Report for 1998/99, a copy of which is available in the House of Commons Library. You also asked for details of the action taken by the Agency to improve target achievements performance in 1999/00. The targets for 1999/00 were published in Hansard on 27 July 1999. Again, a copy is attached for ease of reference. As you will see, with the exception of target 7, "To establish at least six Defence Diversification Offices across the UK", they are essentially the same 693W as those for the previous year. The many trading problems caused by continuing declines in some of our core defence business have meant that the first half of 1999/2000 has been extremely challenging. We are, therefore, having to control costs carefully at the traditional technology end of our business in order to optimise our financial performance. Also of vital importance are our nonfinancial targets because these reflect the scientific achievements on which our reputation and hence future income stream will be based. Last year, we experienced difficulties in setting the baselines for one or two of these, but we have taken managerial steps to ensure that our true achievements are recorded this year. It is, nevertheless, too early to predict the outcome of these measures. Overall, however, our ability to meet the targets will very much depend on a timely resolution of the debate over the future of DERA and the question of a public-private partnership announced in the Strategic Defence Review in July 1998. Naturally, such strategic uncertainty affects DERA staff and customers alike and, whilst our central direction remains unchanged, we need to establish a firm position from which to address the difficulties of our current trading environment.

Key Targets for 1999/2000

In Year Targets consistent with Treasury requirements, to achieve at least a 6% Return on Capital Employed. to set manpower chargeout rates for 2000/01 which reflect a reduction in DERA overheads compared with 1999/2000 budgeted levels. to increase new business income (from customers other than the MOD) to £140 million in 1999/2000. to increase the number of staff elected as Fellows of professional bodies by 10%. to achieve on time 90% of the agreed milestones on work for MOD customers. to increase the level of customer satisfaction, as measured by customer surveys. to establish at least 6 Defence Diversification Offices across the UK.

Three Year Targets over a period of 3 years, to achieve a 20% increase in peer reviewed publications per professional. over a period of three years to increase by 50% the number of scientific teams assessed as 'world-class' in the technical assessment exercise.