MoD projects 'late and over budget'

Thursday, 18 December 2008 12:01 AM

The Ministry of Defence (MOD) has been criticised for being over budget and late with major projects, in a report by the National Audit Office (NAO).

The report, which looked at 20 of the largest projects, found the MoD was on average £205 million over budget and 96 months later than their initial estimates.

Five of the projects examined by the NAO showed significant cost or schedule problems in the past year (2007/08).

Tim Burr, head of the NAO, said today: "Performance remains variable and, until the MoD and the defence industry improve their decision-making processes and show sustained learning from previous projects, value for money will not be consistently delivered."

Different factors contributed to the cost increases and delays, but the NAO highlighted the short comings of project management, underestimated costs, and a lack of realism about the project from the start as seriously contributing to the poor performance.

The Beyond Visual Range Air-to-Air Missile has been pointed out as a particularly poor project. This was severely delayed and overran by £111 million due to the MoD changing to a two-stage delivery programme.

There have been a limited number of projects managed correctly, however. One example is the Watchkeeper unmanned aircraft, which were put into action three years early to meet operational needs.

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