Several suppliers are still not co-operating with the UK government’s regime to prevent overcharging on single source or non-competitive defence contracts, according to a report by the country’s spending watchdog.
The National Audit Office (NAO) also revealed that to date, the UK Ministry of Defence (MoD) had only been able to identify GBP313 million (USD410 million) in savings and cost reductions since its regime to control single source defence contracts came into force in 2014. According to the NAO’s “Improving value for money in non-competitive procurement of defence equipment” report, which was published on 25 October, the ministry has set itself the target of saving GBP1.7 billion by 2025 through the new regulatory regime and the Single Source Regulations Office (SSRO), which was set up to oversee its operation.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options ihs.com/contact