Press Release - Ministry of Defence: The Management of Defence
Research and Technology
10 March 2004
Sir John Bourn, Head of the National Audit Office, told
Parliament today that the Ministry of Defence has made considerable
progress in developing new approaches to the management of its
Research and Technology (R&T) programme to deliver better
outcomes for Defence, but the Department could do more to get the
full benefit from the money it spends.
Defence capability is critically dependent on the effective
exploitation of advances in technology, as emphasised in the recent
Defence White Paper. The Department procures advice on potential
new technologies and in some cases funds such technology
development directly through its £450 million R&T Programme.
Funding has, however, reduced by 30 per cent since the mid
1990’s.
There have been important developments in the Department’s
approach to Research and Technology recently. In July 2001 its
former in-house supplier, the Defence Evaluation and Research
Agency, was split into QinetiQ, with the aim of eventual
privatisation, and the Defence Science and Technology Laboratory
(Dstl), which will remain as the Department’s in-house supplier. In
line with these changes, the Department has re-organised its
internal structures and processes to improve the delivery of
research programmes. The Department has used this opportunity to
introduce an output-management approach.
Sir John’s report identifies that the Department has more to do
in deciding funding priorities and planning its research programme.
The Department should update its existing strategy to clearly
identify its technology priorities, ensure that the levels of
strategy are consistent, and communicate its strategy to
stakeholders.
Historically, the Department has lacked a coherent way of
identifying and measuring the benefits of research programmes. Sir
John’s report recognises that measuring research outputs and
outcomes is difficult because of the wide variety of outputs and
the long-timescales involved. However, the Department should put in
place performance measures suggested by the National Audit Office
to track whether the aims of its new approach are being achieved
and measure longer term outcomes.
The Department is introducing new structures and processes for
managing R&T. These should deliver a more focused and
responsive research programme. The Department also plans, by
2009/10, to compete over 60 per cent of its R&T programme.
Sir John’s report identifies that progress against targets for
introducing competition is good, and there is evidence that
competition is improving bid quality. Competition targets will,
however, place a further strain on staffing, and the Department
should clarify Dstl’s role in supporting the Organisation, and then
revisit its recruitment and retention strategy.
"Pull-through" of technology into the Defence Equipment
Programme is an important measure of success. Sir John’s report
identifies that evidence for pull-through is scarce, though the
Department has several actions to improve performance. It is
encouraging exploitation by giving Intellectual Property Rights to
researchers in industry or academia, and providing incentives to
them to incorporate new technology. Exploitation could be improved
if the Department rationalised its arrangements for demonstration
work, and tackled the funding "valley" between the research and
equipment budgets.
Sir John Bourn said today:
"Defence capability is critically dependent on
exploiting advances in technology. There have been major changes in
the way that the Department procures its £450 million Research and
Technology programme. These changes should deliver better outcomes
for Defence in the long-term. In the short-term, the Department
needs to clearly identify and communicate its funding priorities;
ensure that it recruits the expertise needed to deliver its
programme; introduce measures to gauge if the aims of its new
approach are being achieved; and ensure that the results of its
research are put to fullest use."
Notes for Editors
- The Department’s main objective in funding Research and
Technology is "to ensure the continuing availability of sound
technical advice and of advanced and affordable technology to
support mission-successful Defence capabilities." The budget-holder
for the research budget is Sir Keith O’Nions, the Ministry of
Defence’s Chief Scientific Advisor, and the programme is
administered by personnel in the Department’s Central Scientific
Staff.
- In June 2000 the Chief Scientific Advisor commissioned a major
review of the Department’s strategic direction for Research and
Technology, following the establishment of the Public Private
Partnership for the Defence Evaluation and Research Agency. The
report, which was published in June 2001, recommended many of the
changes commented on in this report.
- QinetiQ was established as a government-owned company in July
2001, with the transfer of 9,000 staff from the Defence Evaluation
and Research Agency. In February 2003 the Carlyle Group acquired a
33.8 per cent stakeholding in QinetiQ and took over management
control of the company. The Defence Science and Technology
Laboratory (Dstl) is an Executive Agency of the Ministry of
Defence. It was established in July 2001, and contains 3,000 staff
formerly in the Defence Evaluation and Research Agency (DERA). It
provides core science and engineering expertise on Defence-related
science and engineering.
- The Towers of Excellence initiative is a collaborative
initiative focused on the development of world-class technology at
the system-level. Three "Towers" were launched between July 2002
and June 2003.
- Press notices and reports are available from the date of
publication on the NAO website,
which is now at www.nao.org.uk. Hard copies can be
obtained from The Stationery Office
on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 18/04
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