In December 2010 the UK Government launched a Green Paper which initiated the formal consultation on Equipment, Support and Technology for UK Defence and Security. Catalyze have responded directly to that consultation, and our submission is copied below. Catalyze also responded in partnership with the UK MoD Weapons Technology Centre (see link provided at the end of this page).

Catalyze Submission

Having considered the online document, Equipment, Support, and Technology for UK Defence and Security: A Consultation Paper Catalyze feel we can best support this consultation by responding specifically to Q57. What approach should be taken to assessing value-for-money in fulfilling defence and security requirements and why?

Perhaps more than any other area of Government, defence value-for-money cannot be considered using simple financial measures and therefore requires a more all-encompassing approach to establishing what is meant by value.

Over the years there has been considerable advice and guidance from HM Treasury on the need to adopt a broader understanding of ‘value’, and this is encapsulated in the Treasury GREEN BOOK Appraisal and Evaluation in Central Government. Other documents that further support this approach based upon the tried and tested multi-criteria decision analysis methodology include Multi-criteria analysis: a manual, latest publication January 2009, and found on the Communities and Local Government web site, and more recently the Management of Portfolios practitioners’ manual published by the TSO on behalf of the OGC, which is now part of the new Efficiency and Reform Group within the Cabinet Office.

A practical implementation of this approach has been and continues to be used in various parts of both central and local Government supported by Catalyze Limited using software, tools and techniques originally developed at the London School of Economics and Political Science. The recent OGC publication includes five case studies from Catalyze indicating how the process has been successfully applied, including one from the MOD. However, despite Treasury and OGC recommendations and endorsement from the National Audit Office the process is not widely adopted across Government.

Current applications of the approach in UK Defence include the Main Gate preparation for Type 26, adoption by the Weapons Technology Centre and the wider Weapons Domain, the MOD/BAE Systems MASS contract and the Defence Technical Training Change Programme. Having been exposed to the process at the Defence Academy some overseas defence partners have adopted the approach, including the New Zealand Defence Force operating in a true tri-services manner in line with their vision of "Three Services as One Force". In addition, defence suppliers such as BAE Systems, Selex Galileo and Thales have applied the approach particularly in evaluating R&D investment and product development.

In the Weapons Technology Centre the process and tools have been adopted specifically to support portfolio prioritisation based upon multi-criteria and value-for-money. Reported benefits include:

• Engagement of diverse stakeholders from within the MOD and across suppliers;
• The creation of an open and transparent environment;
• Objective debate on strategies and alternatives
• Greater alignment and commitment to deliver identified defence outcomes against clear value-for-money objectives from all involved, partners, suppliers and end-user.

NOTE: It is our opinion that the process also address the issues raised in Q58 and Q59, by identifying and understanding exploitation opportunities as part of any value-for-money criteria, and in the manner in which stakeholders are brought together to share knowledge and debate investment options early in the decision process.

 UK MoD Weapons Technology Centre response