The MoD typically procures equipment that incorporates new technology and is of a bespoke design. As a result, the support requirements and cost to deliver the capability on an efficient and enduring basis is hard to estimate (and, given the level of technical uncertainty in major projects is probably unknowable for many projects).
Nevertheless, the Review team's impression is that support is seldom a key consideration when procurement decisions are taken. Although a central purpose of the EAC reforms was to consider whole life costs more effectively, there remain few credible, formal processes85 by which plans are mandated to take whole life costs into account other than through Initial Gate and Main Gate business cases.
Current arrangements incentivise the under-estimation of support costs rather than the generation of accurate estimates. Whilst it may be desirable to move towards a decision making process that is based on whole life cost considerations, it is likely to be difficult to do so for practical reasons relating to the technical complexities and inherent uncertainties surrounding many projects, as discussed above. Worryingly, it has been reported to the Review team that if 'true' support costs were known, they may be sufficiently significant that the whole project would be rendered unaffordable and the equipment would not be purchased - a 'failure' in the eyes of the project sponsor. Any under-estimation of support costs will obviously have an impact on ESP and wider MoD affordability over the long-term.
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85 Through Life Management Plan and Inventory Planning go towards this. Programme Boards (recently implemented) may play a further role