LONDON - The British Defense Ministry is examining whether to delay the point
at which it commits financially to production of some weapon systems to
allow time for more risk reduction.
While senior ministry officials contend that progress is being made
on improving time and cost performance on procurement programs, delays
and cost overruns continue to occur.
Army General Kevin O'Donoghue, the chief of defense material, said "we are looking at it as part of the Defense Acquisition Change
Program." O'Donoghue, giving evidence to the British Parliament's
Public Accounts Committee on Jan. 19, added: "Is it always right to
agree the main investment decision at the start of the development
phase, or should we go through the development phase [and] wait until
the project is technically de-risked to a much greater degree to go for
a production major investment decision."
Government financial watchdog the National Audit Office points out
in its "Major Projects Report 2008" on Defense Ministry procurement
that "the risks associated with the technical challenges of [some]
projects are being under-estimated when the main investment decisions
are being made."
O’Donoghue went on to tell the committee "perhaps with simple
projects going at the start of the technical development phase is
right; for technically difficult projects perhaps it isn't."
The Defense Acquisition Change Program grew out of the government's
2005 Defense Industrial Strategy. It is aimed at improving procurement
performance, and managing programs through their service life.
Photo: EADS
By Douglas Barrie in http://www.aviationweek.com