Defence: Procurement

Lord Touhig Excerpts

Thursday 21st November 2013 Lords Chamber

[Lord Astor of Hever]

My Lords, on my noble friend’s first point, the very fact that one commercial bid team has submitted a bid shows that it believes that there is a potential deal and it can deliver against requirement. We have always known that running a defence acquisition would be challenging, which is one reason for testing through the assessment phase whether it can be done. As for my noble friend’s second point, he is right to recognise the specific needs of defence acquisition and support personnel to match the professionally motivated defence industry. That is why we are very clear that, whatever option we choose, we will need to work with colleagues across relevant departments to put in place the necessary freedoms of operation to provide our Armed Forces with the right kit at the right time and deliver the best value for money for the taxpayer.

[Lord Touhig (Lab)]

The only outside bidder left in this process is a consortium led by Bechtel, a company with a litany of mismanagement of public service contracts, from Iraq to Romania to the United States. In Boston, for instance, it was responsible for the Big Dig, a tunnel construction project that went $1 billion over budget—and two-thirds of the problem was down to its mistakes. Given its mismanagement of the Big Dig, if Bechtel gains control of our defence procurement, will not Britain’s defences end up in a big hole?

[Lord Astor of Hever]

My Lords, the answer is no. The materiel acquisition partner’s team comprises Bechtel, as the noble Lord says, PricewaterhouseCoopers and PA Consulting, a consortium of world-class private sector businesses. The team has extensive experience of complex programme management; between them, they have delivered programmes to the United Kingdom, the United States and to 140 other countries around the world. Bechtel has ranked as the largest programme-managing engineering and construction company in the United States for the past 14 years. Specifically, MAP members have been involved in the Crossrail and High Speed 1 rail projects, as well as the Jubilee line, and in transforming major businesses in both public and private sectors.