In 1998 Smart Procurement identified need for changes in the MoD's commercial relationship with industry. This was further reinforced in 2006 when the EAC report defined one of the key characteristics of a high performing acquisition system as "a strong relationship with industry partners to deliver long-term value for money based on trust, openness and a clear alignment of incentive".
The EAC report found that the quality of relationships with Industry throughout the Department varied that transparency of forward equipment plans and partnering arrangements were comparatively immature and recommended that "a strong commercial team should be built around the Defence Commercial Director to spread good commercial practice, developing a consistent and effective due diligence function".
Previously part of DACP, Fit For Business (FFB) was a programme which started in January 2008 and which formally concluded in March 2009 to create a framework for, and bring coherence to, a number of existing commercial business change initiatives across the MoD98. Focused on the Commercial function of the MoD both inside and outside of DE&S, its objective was to produce a vision, strategy and five-year delivery plan for improvement. One of its key objectives was to recognise the link between delivery of the Defence Industrial Strategy and improved commercial behaviours by the Department.
Workstreams incorporated under the programme have included:
• Commercial Community
• Professionalism
• Processes and Policies
• e-Procurement
• Book of Business
• Commercial Tools
• Commercial and Business Awareness
• Industry Engagement
• Performance measurement
• Standardised contracting
FFB sought to address the variability the quality of the department's commercial relationship through its skills initiatives and the standardisation of contracts and process. One change that this has instituted has been to establish two new senior (two-star) posts in Defence Commercial Directorate with responsibility for MoD's industrial relationships and commercial services in January and April 2009, respectively.
The embryonic FFB plan was reviewed by OGC in June 2008, at which point it was determined that FFB had the potential to address many of the OGC's recommendations for "Procurement Capability". The same review also concluded that strong Departmental commitment would be required to ensure its delivery.
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98 Procurement Capability Review Improvement Plan, MoD (Mar 2009)