Labour pledge to roll back outsourcing at the MoD

Shadow Defence Secretary Nia Griffith will today announce that Labour would call a halt to the practice of outsourcing large MoD service contracts to the private sector.

Speaking at defence thinktank RUSI, she will point to the many examples of contracts that have been given to private companies and which are not delivering the benefits that were promised.

She will reveal that the next Labour government will carry out an immediate review of all significant service contracts that have been outsourced and bring them back in house if need be. Labour would also suspend the process of outsourcing any more significant service contracts.

This comes in light of the government’s recent decision to award a contract for the Defence Fire and Rescue service - which delivers fire safety for our Armed Forces, their families and key defence infrastructure - to Capita, despite the company achieving the highest possible risk rating in an internal MoD assessment.

Capita was recently stripped of its contract to run MoD military estates and its contract for recruitment to the Army has been plagued by problems.

Nia Griffith MP will say:

“Whether it is the persistent complaints about the quality of housing maintenance provided by CarillionAmey – with personnel and their families stuck for days with leaking roofs, broken boilers and appliances that don’t work.

“Or the appalling performance of Capita’s recruitment contract with the Army which is failing on every measure.

“These examples typify the MoD’s current approach – rushing to privatise services without being clear about the rationale, failing to monitor these contracts when they have been outsourced, and then doggedly refusing to take any action against companies that do not deliver.

“The next Labour government will get to grips with outsourcing at the MoD. Upon taking office, we will carry out a root and branch review of significant service contracts that have been outsourced by the Department.

“And where they are not delivering, where they are failing our personnel and their families, or failing to provide value for money to British taxpayers, we will have no hesitation in bringing these contracts back in House.

“And we will call an immediate halt to the significant contracts that are currently being considered for outsourcing, with Labour introducing a clear presumption in favour of public contracts being delivered by the public sector.”

On the Defence Fire and Rescue Service, Nia Griffith will say

“Take the Defence Fire and Rescue Service which the MoD has announced that it will be privatising.

“It simply beggars belief that their chosen partner for this venture is Capita, which was awarded the highest possible risk rating by the MoD themselves.

“When it comes to fire safety, the security of our Armed Forces, their families and vital defence assets must be the main concern, not the drive to make cuts in the attempt to meet efficiency targets.

“It would be extremely concerning if a situation were to arise where this contract could not be delivered or where it could not be delivered to the standard required. The risks are simply too great.”

ENDS

Notes to editors

• On 18 June 2018,the Government announced that it was awarding the contract for the Defence Fire and Rescue Service (DFRS) to Capita.
• The DFRS is responsible for protecting MoD staff and infrastructure, both overseas and in the UK, including nuclear submarine bases, airfields and ammunition, and munition facilities.
• The Financial Times reported that Capita was awarded the maximum possible risk rating of 10/10, and its financial health score was just 3/100 by the MoD, meaning that it may be “vulnerable and should be viewed with care”.
• In September 2017 Capita was stripped of its contract to run infrastructure on military estates early. It was intended to run from 2014 to 2024, but will now conclude in 2019
• Capita signed a contract in 2012 to work in partnership with the Army to deliver recruitment via the Recruiting Partnering Project (RPP). The contract is valued at around £44m a year for 10 years- ending in 2022.
• For the period from contract award (February 2012) to 31 March 2017, the contract had cost £751.9m against a Main Gate Approval of £698.4m.
• Capita is also providing ICT for the Royal Navy and the Royal Air Force. Capita’s new IT system has been plagued with defects leading to difficulties for those trying to join the Armed Forces.
• Despite Capita responsibility being to ensure recruitment to the Army, Army numbers continue to fall. According to the latest figures, as of 1 April 2018 the number of fully trained personnel in the Army was 77,120, down from 78,480 at 1 April 2017, and well-below the target of 82,000.
• CarillionAmey holds the main MoD contracts covering maintenance in service accommodation.

The latest Armed Forces Pay Review Body Report found “the overwhelming concern for Service personnel and their families remained the very poor operation of the maintenance service for SFA (Service Family Accommodation) by CarillionAmey”.