1.1 The defence technology business QinetiQ was formed in 2001 out of the Defence Evaluation and Research Agency (DERA). DERA was established in April 1995 and drew together some twelve science and technology offices and the Defence Research Agency. DERA's role was to support defence capability by providing technical advice in relation to the procurement of equipment and to support the development of advanced and affordable technology. DERA received the vast majority of its revenue from the Ministry of Defence (the Department), which funded specific research programmes in areas of vital strategic importance. This research allowed the Department to call on unique expertise that allowed it to better formulate its future strategy and better specify its requirements. The head of the Defence Research Agency, Sir John Chisholm, who had formerly started the defence software company CAP Scientific, was appointed the chief executive officer of DERA.