13 December 2001
Better purchasing has enabled the Ministry of Defence (MoD) to identify £2 billion of savings across more than 100 projects in the past three years.
In a policy paper, Defence Acquisition, the MoD sets out the "smart acquisition" strategy launched in 1998 to buy equipment "cheaper, faster and better".
The ministry claims to be on target to meet the public service agreement target of no average increase cost in-year on its £9.7 billion annual procurement spend by March 2002.
Last month a National Audit Office report called on the MoD to introduce closer monitoring of smart acquisition projects.
The key principles of smart acquisition are now being extended to construction and public-private partnership service delivery projects.
The Ministry is also likely to benefit from a pledge of an extra £100 million for new equipment for the armed forces fighting in Afghanistan from the Treasury.
• The policy paper is available free at www.mod.uk