Committee publication · Correspondence · 13 July 2026
Letter from the Permanent Secretary at the Ministry of Defence relating to The Future of the Equipment Plan report (HC 716), 2 July 2026
Summary
The Permanent Secretary at the Ministry of Defence updates the Public Accounts Committee on progress by the National Armaments Director Group in its first year of operation, as required by the Committee's Future of the Equipment Plan report. The letter outlines reforms to defence procurement including segmented procurement routes, faster commercial pathways, improved innovation contracting, and strengthened industry engagement, with early evidence of improvements in contracting timescales and capability delivery.
Key findings
- NAD Group launched segmented procurement on 1 April 2026, targeting reduction of major platform acquisitions from six years to two years to first contract, and rapid commercial exploitation from standard timescales to three-month cycles.
- Commercial X programme has supported 970 contracts since 2023, identifying £121 million in financial benefits including £90 million cashable savings, with average time to contract award improved to 50 days.
- Accelerating Commercial Pathways programme reached 70% adoption rate among procurements advertising in May 2026, with Low Complexity Pathway reducing new supplier onboarding to 45 days average.
- Defence Industrial Joint Council established with five subordinate working groups focusing on capability development, readiness, skills, international engagement, and commercial collaboration.
- Portfolio-driven acquisition model introduced with Lethality portfolio launched 31 March 2026; remaining portfolios to follow during 2026-27 to improve pace and integrated capability delivery.
Tone
ProceduralTopics
Key actors
Jeremy Pocklington, Geoffrey Clifton-Brown, National Armaments Director Group, Ministry of Defence, Defence Industrial Joint Council, CIPS, Office for Small Business Growth
Notable line
“UK demand alone cannot sustain the industrial base at the scale we need for our national security.”
Key Quotes
“… a substantial programme of work is underway across Defence to improve procurement performance and efficiency.”
“Procurement segmentation is designed to enable programmes to get to contract faster and has established three segments for Equipment acquisitions.”
“The average time to contract award has improved to 50 days in 2025/26, from 57 days in 2024/25”
“The inaugural meeting of the Defence Industrial Joint Council (DIJC), held on 9 th June 2025, marked a significant step forward in strengthening our partnership with industry.”
“UK demand alone cannot sustain the industrial base at the scale we need for our national security.”
“The Lethality portfolio was the first to stand up on 31 st of March.”
Source · parliament.uk record ↗