UK firms experiencing 'maximum moment of pain' in defence reforms, concedes minister

The UK Ministry of Defence (MoD) will "hardwire" greater involvement from small and medium-sized enterprises (SMEs) into procurement and stick to its pledge to encourage open competition, a defence minister said on 28 June.

Peter Luff, minister for defence equipment support and technology, admitted that defence companies are experiencing the "moment of maximum pain" as procurement reforms come to a head, but reassured them that government will support them given the right conditions.

He also conceded that the MoD has perhaps "not been sufficiently clear when it comes to explaining the principles, rationale and implications" of the White Paper on defence procurement published in February.

"We are looking for greater SME involvement in our procurement strategies. Not for altruistic reasons – but because we are determined to drive in innovation and responsiveness," Luff told a conference held by the Royal United Services Institute think-tank.

"So we will also hardwire this approach into the reformed DE&S [Defence Equipment & Support] and its harder-edged relationship with the MoD customer."

"Our policy will, more often than in the past, lead the government to open up our defence contracts to international competition – just, indeed, as the last government judged it right to do," he added.