MoD procurement privatisation - crucial article that didn't appear online
Tony Gosling | 23.03.2012 13:55 | Analysis | Anti-militarism | Public sector cuts | World
This article appeared in the print edition of the Bristol Evening Post but someone somewhere decided it should not appear in the online edition - wonder why? It names and shames the massive companies that are circling round the MoD procurement centre at Abbey Wood, North Bristol like vultures. Just imagine if the private arms firms were in charge of overseeing government arms contracts. Bye-bye future - it's 1984 in spades! The last line - as ever - is the most important considering BAe Systems are 'at the heart of corruption' in the global arms trade.according to Andrew Feinstein (see below)
Talks on Abbey Wood privatisation
Ministry of Defence in discussion with 'various companies'
Michael Ribbeck - Business Editor-
m.ribbeck@bepp.co.uk - Tuesday 20th March page 14
THE Ministry of Defence has re¬vealed it is talking to various com¬panies about the possible privatisation of its massive Abbey Wood centre.
Around 10,000 people work at the base in Filton which is responsible for sourcing and supplying equip¬ment for all three of Britain's armed forces.
The base is the largest MoD centre in the country and the Government has admitted it is taking a close look at the way it runs the operation.
As reported in the Evening Post hundreds of jobs are to be axed at the procurement headquarters as part of the Government's defence spending review. The review was carried out under the former defence minister and North Somerset MP Liam Fox.
But the cuts have still not gone far enough and the Government is looking at other ways of saving cash from an organisation which has an annual budget of £14 billion.
The base is the headquarters of the Defence Equipment and Support procurement organisation. It is respons¬ible for ordering everything from uniforms and soldiers' kit to fighter jets.
Its biggest project at the moment is overseeing the development of the two new super-carriers.
Major defence projects have come in for serious criticism in recent years for going massively over-budget. Liam Fox made it clear it was his main priority to get tough with defence firms.
The procurement organisation did 'have sites across the country; includ¬ing London and Bath, but all the staff will have moved to the Filton site by the middle of 2012.
According to reports the current Defence Secretary Philip Hammond has asked around 15 companies to take part-in a consultation on the future of the site.
There are three options on the table and the Government has been speak¬ing to defence companies, account¬ants and consultants about their plans.
The options include:
• Creating a trading fund which would be used to create a separate company.
• Abbey Wood could become a Non Executive Public Body or a Quango. .
• A government owned company.
Mr Hammond has been talking to various companies but the MoD is not giving a timetable on how long the process will take.
According to industry sources Mr Hammond has spoken to Serco and Babcock International. Both firms specialise in overseeing and man¬aging major engineering projects.
Major finance firms including De¬loitte and KPMG have also been con¬sulted along with the Bechtel Group and Fluor Corp.
BAE Systems, which owns Filton Airfield - and employs hundreds of staff in the Bristol area are also taking part in the talks.
further information:
Interview with Andrew Feinstein - author of the new book The Shadow World - Inside The Global Arms Trade (Penguin 2011)
http://radio4all.net/index.php/program/56036
Ministry of Defence in discussion with 'various companies'
Michael Ribbeck - Business Editor-
m.ribbeck@bepp.co.uk - Tuesday 20th March page 14 THE Ministry of Defence has re¬vealed it is talking to various com¬panies about the possible privatisation of its massive Abbey Wood centre.
Around 10,000 people work at the base in Filton which is responsible for sourcing and supplying equip¬ment for all three of Britain's armed forces.
The base is the largest MoD centre in the country and the Government has admitted it is taking a close look at the way it runs the operation.
As reported in the Evening Post hundreds of jobs are to be axed at the procurement headquarters as part of the Government's defence spending review. The review was carried out under the former defence minister and North Somerset MP Liam Fox.
But the cuts have still not gone far enough and the Government is looking at other ways of saving cash from an organisation which has an annual budget of £14 billion.
The base is the headquarters of the Defence Equipment and Support procurement organisation. It is respons¬ible for ordering everything from uniforms and soldiers' kit to fighter jets.
Its biggest project at the moment is overseeing the development of the two new super-carriers.
Major defence projects have come in for serious criticism in recent years for going massively over-budget. Liam Fox made it clear it was his main priority to get tough with defence firms.
The procurement organisation did 'have sites across the country; includ¬ing London and Bath, but all the staff will have moved to the Filton site by the middle of 2012.
According to reports the current Defence Secretary Philip Hammond has asked around 15 companies to take part-in a consultation on the future of the site.
There are three options on the table and the Government has been speak¬ing to defence companies, account¬ants and consultants about their plans.
The options include:
• Creating a trading fund which would be used to create a separate company.
• Abbey Wood could become a Non Executive Public Body or a Quango. .
• A government owned company.
Mr Hammond has been talking to various companies but the MoD is not giving a timetable on how long the process will take.
According to industry sources Mr Hammond has spoken to Serco and Babcock International. Both firms specialise in overseeing and man¬aging major engineering projects.
Major finance firms including De¬loitte and KPMG have also been con¬sulted along with the Bechtel Group and Fluor Corp.
BAE Systems, which owns Filton Airfield - and employs hundreds of staff in the Bristol area are also taking part in the talks.
further information:
Interview with Andrew Feinstein - author of the new book The Shadow World - Inside The Global Arms Trade (Penguin 2011)
http://radio4all.net/index.php/program/56036
Tony Gosling
Homepage:
http://www.thisweek.org.uk
Comments
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MoD procurement fraud
30.05.2012 23:47
see also
MoD procurement fraud
Prince Bandar Bin Sultan
July 2012 - Private company set to run huge MoD complex
12.09.2012 22:29
By Paul Sandle and Rhys Jones - LONDON | Wed Sep 12, 2012 7:31pm BST
(Reuters) - Britain's BAE Systems and Airbus-owner EADS are in advanced merger talks to create a combined group worth $48 billion (29 billion pounds), overtaking Boeing as the world's biggest aerospace and defence company in terms of sales.....
Private company set to run huge MoD complex
Tuesday, July 17, 2012 - The Post
THE Ministry of Defence's massive Abbey Wood complex is set to be run by a private company, ministers were expected to announce today.
Most of the 10,000 workforce would become private sector employees under the shake-up, with a contractor brought in to manage the organisation responsible for supplying equipment to Britain's armed forces.
The MoD said it was too early to speculate about job losses and the impact on staff terms and conditions, but a city MP said it "raised serious questions" over job security.
The government has been investigating possible options for the base at Filton, the largest MoD centre in the country, including outright privatisation. Ministers pledged to improve the procurement process after critical reports into equipment supply problems.
Defence Secretary Philip Hammond was today expected to tell MPs that the government's preferred option is for Abbey Wood-based Defence Equipment and Support (DE&S) to become a "Government Owned Contractor Operated" organisation. It would still be owned by the government but run entirely by a private company employing staff directly.
Bristol East Labour MP Kerry McCarthy, who raised the matter with Mr Hammond in the Commons yesterday, said: "The Secretary for Defence seems determined to privatise DE&S and has cynically left the announcement until the very last minute in an attempt to bury the news. Obviously this raises serious questions about the security of people's jobs at the DE&S Headquarters in Filton Abbey Wood and whether privatisation will benefit our armed forces and the taxpayer."
She raised fears of "expensive uncapped salaries" for bosses of any private company brought in to run the service.
It is understood that the government has yet to decide whether the proposed new model would represent value for money for taxpayers. Mr Hammond is expected to make a written statement today.
An MoD spokeswoman said: "As the Defence Secretary said today, work so far suggests that the case for DE&S to become a Government Owned Contractor Operated organisation is the strongest of the three options that were being considered.
"However, further analysis needs to be done before a final decision is made. It is therefore too early to speculate about the possible impact on staff at DE&S, who are being kept fully informed."
A number of companies, including BAE Systems, which owns Filton Airfield, have already been consulted by the government over any change.
Tony Gosling
Homepage:
http://www.thisisbristol.co.uk/Private-company-set-run-huge-MoD-complex/story-16547260-detail/story.html