The second reading of the Defence Reform Bill took place in the House of Commons on Tuesday 16 July. The Bill covers some of the proposals and measures for reform announced in 2 recent white papers: Better Defence Acquisition and Reserves in the Future Force 2020. There are 3 parts to the Bill. The Materiel Strategy Part 1 of the Bill relates to the Materiel Strategy and reform of Defence Equipment and Support. It provides the legislation needed to create and run a government-owned, contractor-operated (GOCO) organisation should it be decided that this is the best way forward. It makes provision for the Secretary of State to make arrangements for a company to provide defence procurement services under contract with the Secretary of State. It also covers other elements, including: · the transfer of employees to that contractor, which will be done in accordance with TUPE regulations · financial claims against the contractor · the provision of financial assistance · the jurisdiction of the MOD police · the disclosure and use of confidential information and intellectual property rights Although a final decision on whether to pursue a GOCO organisation is not expected until summer 2014, the relevant legislation that would be required has been put forward as part of this Bill. Single Source Procurement Part 2 of the Bill creates a new statutory framework for single source procurement contracts. The new framework provides MOD with far greater transparency of around £6 billion per annum of procurement spend and standardised reports to allow us to better monitor single source contracts. The framework will also provide stronger protections to ensure the onus is on suppliers to use the most reasonable and appropriate pricing assumptions they can. The Bill creates a Single Source Regulations Office (a new non-departmental public body) to oversee the new framework and which will replace the existing Review Board for Government Contracts. The framework provides MOD with unprecedented levels of commercial information that will allow us to understand and challenge supplier costs. Given the level of information being provided, the Bill creates a new criminal offence relating to the unauthorised disclosure of information that may be obtained under this new framework. Reserve Forces Part 3 contains 4 measures to strengthen and support the Reserve Forces. These include: · renaming the Territorial Army the Army Reserve to reflect the significant changes to its role and full integration · expanding the powers to call out the Reserve Forces · introducing new financial incentives for the employers of reservists · providing reservists with additional protection by direct access to an employment tribunal (exempt from the 2-year qualifying period) where they have been unfairly dismissed due to their service What Next? The Bill will now proceed to the committee stage, which should be completed this autumn. The Bill is expected to complete its passage through the House of Commons by the end of this year and to receive royal assent by the end of the current parliamentary session in the spring of 2014. Defence Secretary Philip Hammond told MPs: "The reforms will ensure we have the well-trained, well-equipped and integrated Reserve Forces we need, able to deploy with their regular counterparts as part of Future Force 2020. "The driver for change running through this Bill is the requirement to deliver the capabilities our Armed Forces need while ensuring value for money for taxpayers - whether that is through better procurement or through more efficient and effective use of Reserves."
Posted on: Mon, 22 Jul 2013 09:42:30 +0000
Trending Topics
Recently Viewed Topics
© 2015