Good afternoon, all people. So I’m the Minister for Defence procurement within the UK, I don’t have a speech as such, and what I imply by that’s I haven’t acquired one written by the Civil Service. After I was a Treasury Minister, earlier than I acquired this job, I went to a convention a bit like this about AI. And there have been 4 Secretary of States talking at this convention, and what neither of them knew was that all of them had the identical gag after they began, which is that they learn their speech, the primary paragraph and guess what? As if it had been written by Chat GPT. When you get to the fourth iteration of that isn’t as humorous because it was the primary time. So this hasn’t been written by Chat GPT, that is me as a result of I’m very enthusiastic about this challenge as a result of I believe autonomy in defence is a tremendous alternative.
And I’ll clarify why however to begin with, congratulations to my hosts. Thanks for inviting me as a result of this occurs to coincide with a vital day. At this time the Ministry of Defence we’ve launched formally our new procurement system, which I’ve put ahead. It’s known as the Built-in Procurement Mannequin. Now, simply to place that in context, after I acquired this job final April, after Alex Chalk grew to become Lord Chancellor, I changed him as Minister for Defence Procurement, we had been in the course of a vote within the Home of Commons and as I used to be strolling across the foyer voting, my colleagues had been coming as much as me they usually all congratulating me. And every of them in the identical phrase would say, however by the best way, you’ve acquired Ajax. So this job is form of synonymous with one explicit undertaking, and I believe from day one, I knew we wanted to reform procurement. And after I introduced the brand new procurement mannequin on the twenty eighth of February I used to be very clear that while that is about responding to all of the considerations which were introduced up through the years, with programmes like Ajax however not simply Ajax, Nimrod there may be lots of them going again over a few years’ time.
Crucial purpose to reform procurement is far more elementary than any of these causes or to do with any of these programmes. And it’s merely this that if we as a rustic, and our allies, as effectively, are to compete sooner or later with our adversaries with the best way they’re investing in defence and expertise, we now have no selection however to reform procurement. And one of many the explanation why I believe this new mannequin hopefully will really take impact not simply being launched, however as you’ll realize it has change into cultural inside MOD, which is one thing we’ll be engaged on, it’s honest to say.
The rationale for that’s as a result of if we don’t reform procurement, our adversaries will simply transfer too far-off from us. And so I wished to to begin with set out what this reform is all about. As a result of it’s coronary heart is expertise, and for me, an important a part of that’s round uncrewed techniques and in addition all of the technological advances that include that and the techniques that they depend on. So essentially, it’s not about platforms is as , it’s about techniques, it’s about architectures, about software program.
And so there’s 5 key options of the brand new system. And now the primary one is prime. It’s known as an Built-in Procurement Mannequin for a purpose. You’d bear in mind that in 2021, we introduced a brand new built-in working idea for the UK Armed Forces, however in saying that and recognising the truth of recent warfare is an built-in battlespace. We preserve what’s known as a delegated procurement mannequin ie. primarily having three frontline companies procuring what we describe as backside up foundation whereas to me, in order for you an built-in strategy, you must built-in procurement.
And so the primary level is to have joined up strategy to procurement in observe. The bête noire is what we name over programming, this phrase over programming implies that primarily, the armed forces try to acquire extra stuff than there may be administration capability to purchase or frankly, capability in DE&S and elsewhere to ship and so the best way we now have managed spending in recent times is you progress programmes to the best, delay in order that actually to regulate price. And it’s not distinctive to MOD, it’s typical of massive capital initiatives. They price taxpayers some huge cash but it surely’s a specific challenge in defence, as a result of in the event you delay programmes they change into dearer and query marks that come out in regards to the future these programmes.
And so one factor I wish to see extra of is by taking a joined up strategy that’s pan-defence, you usually tend to make your priorities based mostly on an important purpose which is the risk we face and procuring in a joined up style. Okay, so a very good instance we’re presently engaged on our munitions plan for the munitions we buy as a UK MOD over the following 10 years, significantly to replenish our shares, following the numerous gifting to Ukraine. One of the best ways to try this is pan-defence. If we simply mentioned to the one companies, what do you every want? We find yourself with an consequence that had a 3rd, a 3rd a 3rd. However to me, that shouldn’t be the precedence, the precedence is the threats we face as a rustic and what we have to counter it and I’ll simply end on that time as a result of we’re right here to speak about autonomy.
The perfect instance of that joined up strategy is drones really. So we’ve really had some implausible, navy entrepreneurs within the MOD we’ve seen throughout the frontline command some implausible experimentalism. That has led to some actually innovative capabilities within the uncrewed house, a few of which has been utilized in Ukraine, as you’ll concentrate on. The issue is, as soon as you are taking these to the following degree, procuring these techniques to change into a part of an built-in power that may be efficient in battle, at that time, you do must have a extra built-in strategy.
We can’t simply depend on the idea of 1,000 flowers that 1,000 flowers will bloom, as you’ll know, you must have widespread knowledge requirements, the flexibility of your capabilities to speak to one another and to the opposite companies. So that could be a actually good instance of the place we have to now transfer right into a extra joined up part which was a key piece of the Uncrewed Technique that I introduced earlier this yr.
The second half is checks and balances. Now, to begin with, that’s about oversight. So we could have a brand new Built-in Design Authority to supervise these adjustments to ensure they really occur in actuality, if the procurement comes ahead, and the necessities don’t allow no matter that system is to speak to the opposite companies, it will be scored negatively, it’d be returned to wherever it got here from. I imply, that’s in a nutshell, however I believe there’s a extremely key half checks and steadiness which is my view as Minister for Defence Procurement, which is that to be as diplomatic as I can, my expertise with this previous yr is that when the necessities come ahead to you, the Minister, when the programme comes as much as be signed off, shall we embrace there was one thing of an expectation that will probably be signed off. Whereas I take a barely completely different view. And to me, an important a part of this second side of checks and balances is what I name the creation of a second opinion.
Genuinely kicking the tyres on packages in the beginning. So that you simply ask the best questions and also you get the best reply. As a result of there was historical past, which is completely comprehensible, institutional, as within the UK defence I’m positive it’s the identical in different nations, actually I do know it’s as I’ve mentioned a few of my colleagues and my counterparts in different nations, is that this form of what we name the platform presumption. We’ve acquired the mark 5 and after ten years we are able to have the mark six, seven, and many others. However what if that’s not the best answer for the risk that we face?
And so the second opinion… we’re very luck within the MOD, we don’t simply have the navy. We have now wonderful scientists within the Dstl. We have now DE&S with all their interface with business, which is now being strengthened with one thing known as the DE&S gateway. We principally have this repository of information and knowledge that’s extraordinary. And so I wish to have a place the place when that procurement begins, that huge programme, you don’t simply have the navy evaluation of the necessities that you simply want. You may have the problem of the opposite consultants that we now have in our establishment, the Dstl and so forth telling you the way technically viable that’s. So for instance, that key query, ought to it really be an uncrewed system? And this isn’t a minor topic of dialog.
We’re speaking about essentially questioning some assumptions in regards to the capabilities that we presume we’ll most likely be procuring sooner or later and I think the navy proof for wargaming from Ukraine, will present that more and more we’re going to be weak, and that we have to do what different nations have began to do, I have simply seen that the the US has simply introduced they’ve cancelled a serious programme and that will have been crewed and that can now be uncrewed, it was a serious reconnaissance programme FARA.
So the third level is about exportability to checks and balances all joins up with exportability, the FT coated this in the present day, after I was speaking to them actually noticed this as a standout characteristic, and I believe that’s honest, as a result of, once more, going again to the primary day of the job, you get your first submission, which is what the Civil Service provide you with as a chunk of recommendation. And first one I had on procurement had a few sentence about exportability actually, the letter to the Chief Secretary that went with it really helpful to acquire it. And awaiting my sign-off was that it it didn’t point out potential advantages of exportability and I believe this needs to be ingrained in acquisition from the start.
And there’s two key causes for that. The primary one is what’s the foremost drawback in the intervening time in defence it’s the resilience of our provide chain, as a result of we had nice success with NLAW in Ukraine. We picked up the cellphone and mentioned give us extra of these, okay, in the event you’re prepared to attend years. You’ve acquired to have that steady most degree of combination demand, proper? Steady provide chains. That’s why you want to drive exploitability however the different a part of it’s a bit refined, however is admittedly key in procurement. I’m at all times requested the hypothetical query, would your new strategy have averted the Ajax issues. Bodily not possible to reply clearly, since we’re not within the interval of getting a time machine. Which is the in the event you if you must contemplate worldwide necessities, my view it’s a good counterbalance to being that horrible phrase overly beautiful, ie having plenty of very bespoke necessities. It doesn’t assure it but it surely’s extra possible that. There tends to be a vector between worldwide demand and your ideally suited home UK manufacturing. And in the event you can minimise that, you’ve acquired a reasonably good product as a result of it means you get it into line with the UK after which export it to guard your provide chain.
So the third level on exportability it’s already one thing I’m pushing. So on the New Medium Helicopter procurement. We’ve acquired a powerful weighting for exportability. The fourth level is about empowering industrial innovation. Now that is actually the place you guys significantly are available in these from business right here one thing I’m eager to see far more typically I hope you’ve been conscious of this that we’re doing increasingly engagement in business at a categorized degree.
So the business can perceive our necessities a lot earlier within the course of. And in flip, we are able to choose up the suggestions from what’s taking place in the true world. And I hope that what’s taking place with all these individuals speaking could be very fascinating. So I’ll provide you with a very good instance, essentially the most uplifting expertise I’ve had as a Minister for Defence Procurement was final October after I went see a UK firm creating a drone being utilized in Ukraine. Whereas I used to be there, they had been receiving suggestions from the frontline. They usually had been then spirally responding to that inside days.
Now once we used to have individuals coming in and saying Minister this factor goes to be delayed one other 27 years or no matter. And also you see that form of spiral growth within the flesh. It’s fairly one thing to behold particularly as a result of the potential is very efficient and prices a tiny fraction of the factor I used to be speaking about that’s going to be delayed a few years, we begin to actually take into consideration whether or not you’ve acquired the best strategy for procurement and it’s fairly revolutionary what is occurring.
So I at all times have a scenario the place the UK business feels near MOD. It doesn’t imply shut as within the unhealthy manner of being shut it’s a extremely wealthy relationship based mostly on this suggestions with the info from the frontline and from Ukraine and so forth, and what’s changing into doable what’s changing into essential and speedy growth of merchandise on the again of it.
And the fifth and last one is about having spiral growth by default. Spiral growth great phrase because the FT mentioned to me yesterday, it’s really actually form of quite common place within the company world. The phrase shouldn’t be commonplace in defence and that’s the place the change must be made.
What does it actually imply? So we are saying effectively, if you wish to go get 60 to 80% of your necessities as an alternative 100%. As an alternative, of getting IOC and FOC lengthy standing methods of measuring your progress, we simply wish to add minimal deployable product. Principally, you measure the effectiveness of the product, the purpose at which it’s ready for use, and I believe that’s a extremely great way of measuring.
So we talked in regards to the navy, I’ve acquired written solutions and I have a look at them at them if that is loopy. That had been my opponents requested me the IOC and FOC all of our programmes, and fairly just a few of them are in use. They’re getting used and we’re saying they’ve solely been achieved IOC in the event that they’re being utilized by navy however there’s fairly a very good instance in our missile techniques.
And I believe it simply exhibits the purpose that that’s as a result of we’re specializing in the proper factor to realize. The place we wish to get into service shortly and spiral improve it. It does occur, but it surely’s not cultural. That’s the important thing level we wish to change into the cultural assumption in Defence as a result of there will probably be programmes like nuclear submarines, which won’t conform to this strategy. By definition, they’ll nonetheless take a few years, completely essential. Extremely unlikely so there may be nonetheless going to be an enormous programme which is an exception sitting exterior the norm however the truth is, from in the present day by the brand new procurement mannequin in defence, we now have deadlines – three years for software program, 5 years for {hardware}.
So I mentioned in my speech to the Home, on our Cellular Fires Platform which is our engineering artillery functionality. It is going to be procured inside 5 years, which in some ways didn’t sound that fast however it’s as you all know in comparison with what’s gone on earlier than on our main platforms and many others.
Simply to say and so what does this imply for uncrewed and robotic techniques and so forth. And I believe this strategy I’m outlining is all about expertise. We have now this factor known as the Gear Plan. What I imply is we now have 10-year programme, proper, which everybody is targeted on. And but, we’re informed that the identical time that we could possibly be at battle in two or three years, we’re in a pre-war atmosphere. And we’re nonetheless centered on this platform iteration mannequin. Properly, we’re gonna get extra ships. Now these ships will take 9 years to construct, however , we’re simply gonna get extra ships. That’s what we have to do for the nation. Whereas to me, at all times should do is why that is so essential. And why you’re assembly in the present day, we’ve acquired to focus more and more on the way you make your present platforms and folks and capabilities extra deadly, extra survivable.
And likewise the platform you’re constructing out within the water and within the air, in a few years. That’s the place the main focus in my opinion must be. And in the event you try this, it’s conceivable that a few of the acquisition you presumed to be doing later within the Gear Plan you imagine to occur.
Now I can recognize this isn’t standard pondering however that’s really what’s taking place in Ukraine. So it’s telling us we have to begin specializing in what kind of weapons we are able to deliver ahead quickly, what kind of weapon techniques what kind of IT techniques to assist them. There will probably be capabilities we now have in the present day, which we’ll use if we had been in battle imminently the place there are it upgrades, software program AI, that can make them extra deadly and extra survivable.
So I believe to me, that’s an enormous a part of the main focus. That doesn’t imply you don’t nonetheless have the longer packages that take time to try this. It’s simply once more, the place’s your cultural focus? As a result of I’d put it to you now , the place do we expect the main focus nonetheless is institutionally in defence? That’s a good query. And I believe that has to shift and it’s beginning to shift.
I’ll end on this broader level about the place to subsequent transfer on uncrewed. I really suppose that is a tremendous alternative. When individuals say to James, good, it’s simply, it’s by no means gonna occur in observe. Too good to be true. It’s taking place in observe. I talked in regards to the drone firm. There’s many different examples the place we now have SMEs who’re coming ahead with actually innovative stuff and quickly, significantly software program firms. Clearly, this form of strategy is customary in software program. Fixed improve. Everyone knows that generally it’s extremely irritating, particularly with a legacy laptop computer or IT system.
However it’s customary observe in a lot of business and we have to adapt it into the tradition and DNA of defence.
We’re not speaking simply be clear about Pressing Operational Necessities. That is the place you’re actually not simply on the cusp of extra why scenario you’re making ready to exit to wherever and there are issues you want to do to your autos to your package, iterations which means you may stand up to no matter that risk is. That is completely different to that. That is about having profiting from the tempo of innovation that’s on the market. The UK might have far more survivable and significant functionality inside a comparatively small period of time, cost-effectively, which needs to be careworn.
So I believe it’s extremely thrilling individuals which can be concerned on this business. I believe that we’re on the cusp of a big pivot to a lot larger use of uncrewed techniques. I imply, it’s made me suppose that’s an apparent factor to say. Some debate on if uncrewed overhyped or underhyped. I’ve the privilege of realizing what’s taking place in theatre, but in addition Simply think about what it might do, within the palms of a high tier navy. The purpose I’m making is admittedly creating cohesively built-in battlespace, it might do unimaginable issues, it may possibly add mass.
My colleagues, my parliamentary colleagues will arise within the Home they usually need us to decide to extra ships extra personnel, extra plane and many others. However how will the normal platforms cope going ahead? Whereas we are able to deliver out new drones, new floor results and specifically in maritime comparatively shortly, it’s already taking place. Everyone knows what’s occurred within the Black Sea. That’s an unimaginable strategic victory for Ukraine, which is unlucky, underplayed due to the protection understandably for what is occurring on land, however it’s an unimaginable impact they’ve achieved as a rustic of UK we’re very effectively positioned actually the very best positioned nation apart from Ukraine to be taught the teachings from what is occurring on this very day and has been taking place in that battle house within the uncrewed techniques and , we want the maritime functionality coalition with Norway we want the drone coalition with Latvia.
That is studying classes in actual time. There isn’t a higher take a look at lab than that. We as a rustic have gotten to take that chance to drive correct embracing of uncrewed techniques and all customary techniques, the stuff that goes with it coping with digital warfare, which is all pervading in Ukraine, as you all know, implies that our armed forces can combat the combat that’s going to occur in the present day. And if we try this, I believe we construct prosperity for our business and larger safety for our individuals. Thanks very a lot in your time.
