Lord Jim wrote:I know the MoD has to accept some of the risk, but at the moment we are taking on too much out of a need to reduce costs as much as possible.
Is the MoD controlling the risks? Does it know what risks it is taking on?
Lord Jim wrote:UK Companies also have to learn that although they are entitled to make certain margins with regards to MoD contracts, the MoD has the option to go elsewhere and will do.
Are UK companies making margins on the MoD contracts you seem to be complaining about? It's been a long time since Cost Plus was standard practice. And where will the MoD go? To foreign suppliers who are supported by their respective governments, with cost plus contracts etc.
If you follow the route you seem to be proposing, you end up having to take what is on offer. No other choices or options. You are also dependent on foreign logistic support.
Lord Jim wrote:UK companies must be competitive and any cost comparisons must exclude welfare and other external issues.
Why? the MoD isn't separate from the rest of government. Does securing your supply chain come under "other external issues"
Lord Jim wrote:I have argues many times that if these are part of any tender process then other Government departments need to contribute to offset the increased costs for UK sourced items.
It's entirely possible that you were wrong before and you're still wrong now.
Lord Jim wrote:It is not the MoD's role to secure jobs in the UK or maintain a manufacturing base.
Is it the MoD's job to secure their supply chain and supporting logistics?
Lord Jim wrote:However unlike private contracts, the MoD cannot impose true penalty clauses in its contracts, relying on bonuses for Contractors if the deliver either early or on time based on the timeframe agreed in the contract
Is that true? Why is that the case?