One of the fundamental design principles around which the acquisition organisation is structured is that DE&S should provide the MoD's main interface with industry, particularly in terms of commercial relationships in project and programme delivery.
Industry, however, have other important interactions with the Department and government more broadly. These range from longer range strategic direction of capability requirements that impact on industrial strategy, conceptual and R&D interaction that is upstream of formalised assessment work, through to policy on international industrial co-operation or exports to achieve foreign policy objectives.
It has proved difficult and sometimes frustrating for DE&S to attempt to "speak for the Department" when industry has proved adept at using its other points of contact to work around DE&S to further its interests, particularly regarding current or potential project work. The effect of this can be to undermine DE&S's own strategy vis-à-vis industry, which may then impact the value that the Department can derive from an effective commercial strategy.
The effectiveness of DE&S's interactions with industry is therefore of central importance in determining its overall performance and in large part the nature of these relationships is determined by the MoD policy context.
Confusion appears to be compounded by the role of Commercial at the DGD Commercial departmental level and the commercial function embedded within DE&S. Whilst this organisational construct fits within a "Unified Customer" model of operation, it potentially confuses the primacy of DE&S in dialog with industry. This in time can serve to blur boundaries of accountability and responsibility.