Securing Value For Money from non-competitive procurement in defence

The study will address the MOD’s use of non-competitive procurement, focusing primarily on equipment procurement and support. The lack of competition in defence procurement is an age-old challenge for government and it will remain an important and unavoidable feature of the UK defence industry for years to come.

The National Audit Office last examined this issue in its 2001 report ‘Non-competitive procurement in the Ministry of Defence’. In 2001, the MOD spent around £2.25 billion on non-competitive procurement, by 2015/16 this had increased to £8.8 billion (payments for competitive contracts totalled £9.9 billion in 2015/16). Given the scale of spend it is therefore very important that the MoD is doing its best to secure VFM in these circumstances.

The study will examine the current status of non-competitive procurement in defence, how the MOD secures VFM in these situations and the role of independent regulation.

If you would like to provide evidence for our study please email the study team on enquiries@nao.gsi.gov.uk putting the study title in the subject line. The team will consider the evidence you provide; however, please note that due to the volume of information we receive we may not respond to you directly. If you need to raise a concern please use our contact form.