05 June 2003
A major review has called for better communication between the two defence organisations dealing with procurement and logistics.
The National Audit Office's report, Ministry of Defence: Through-life management, points to an incompatibility between the IT and financial reporting systems used by the Defence Procurement Agency and the Defence Logistics Organisation.
It says "through-life management" is a key element of smart acquisition, the MoD's better procurement initiative.
It looks at costs and benefits of a project from its purchase to the end of its useful life, but measurement has been "patchy", said the report.
However, it praises the MoD for rapidly implementing integrated project teams, a cross-functional framework for improving all procurement.
Sir Peter Spencer, the new head of the Defence Procurement Agency, has said he will conduct a personal review of procurement processes to better understand the issues.