Defence Storage and Distribution Agency (Removal of Agency Status)

Thursday 22nd July 2010 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

With effect from 31 July 2010, the Defence Storage and Distribution Agency (DSDA) will cease to have the status of an executive agency of the Ministry of Defence (MOD).

DSDA was established as an agency in 1999 to store, maintain, issue, process and distribute materiel for the MOD and other designated users. In April 2006, DSDA launched a major efficiency programme under the future defence supply chain initiative (FDSCi). This completed in 2008 having successfully delivered savings of 35% in annual operating costs, reductions in staff levels of 37% and fundamental improvements in service levels.

Subsequently the operational efficiency programme (OEP) has been considering potential future operating models for DSDA post-FDSCi. It anticipated greater value for money may be achieved by pursuing a strategy of increased outsourcing and transfer of business and assets to third party providers for the majority of activities that can be delivered outside of MOD.

This does not require agency status. Moreover, the change of status will enable the restructuring of the joint support chain to improve and streamline the end to end support chain to be fully implemented and deliver significant improvements.