Decision to pursue a Public Private Partnership

Deliver two sustainable structures in QinetiQ and DSTL, which will provide value for money and a range of benefits in defence research including:

Introduction of commercial disciplines, to achieve reduced contract prices for the Department and other customers as a result of increased competition, economies and productivity.

Enhanced flexibility to develop commercial business partnerships and engage in a greater range of joint ventures, thereby positioning itself to anticipate, rather than merely react to, customer needs.

Access to private capital through either equity or debt in order to build capability and support future investment in technology.

Strengthening the links between the civil and defence technology so the Department and the wider economy benefits from broader application of technological advances.

Effective and productive relationships between private and public sector reflecting the Department's aims under the Smart Acquisition Initiative.

The ability to address skills shortages in critical technologies through greater flexibility in remuneration.

A structure that provides international partners and other stakeholders with confidence so that collaborative relationships will be maintained and protected.