IAB Role. Given the recommendations set out earlier, the IAB's mandate and approach would need to be adjusted to fit into the arrangements around a new Executive Committee considering affordability, as well as the external costing checks and balances. This is intended to ensure that there is consistency in framing project plans for inclusion in the EPP with the process for approval to actually commit to this expenditure. Also it is clear the IAB should move away from a process that examines a sequence of isolated projects as they arise to a role which is more tied to the shape of the evolving equipment plan, including the periodic review of projects that have already been approved.
Scrutiny. The role of scrutiny is important in shaping the business cases that are eventually presented for consideration. Concerns that its functions are potentially duplicated by assurance activities within DE&S are considered elsewhere, but there would appear to be a case for considering a more streamlined "cradle to grave" support and challenge activity to the acquisition community. DE&S should be providing reliable input to business cases, but ultimately, the Capability Sponsor is seeking approval to commit funds and, under proposals here, would be the budget holder as well. The cost and "do-ability" inputs from DE&S are, however, central to the business case. If these prove unreliable or overoptimistic, the Capability Sponsor is exposed.
Hence the role of Scrutiny would need to be clarified as one of providing the support to the Sponsor to ensure the inputs it is receiving have been adequately vetted.
Cost Inputs. In terms of "should cost" or parametric modelling, there are a number of approaches that could be adopted and the detail of this element of the recommendation would need to be considered further. However, there are a number of criteria that should be adopted:
• the source of costings should be scrupulously independent of MoD influence;
• the processes for deciding on cost inputs or input ranges should be clearly mandated, with a bias toward conservatism. This should be implemented and monitored outside of both the Capability Sponsor and DE&S; and
• the costings need to take account of risk in terms of cost range, as well as time to complete.