A botched project to outsource defence procurement cost taxpayers £33m - and questions remain about the value for money of its replacement, a spending watchdog has said.
The Ministry of Defence dropped attempts to set up a government-owned, contractor-operated (GoCo) model for buying military equipment in 2013 after all but one private bidder withdrew.
It settled instead for turning Defence Equipment and Support (DE&S) into an arm’s-length body responsible for securing £14bn of kit and support each year on commercial lines.
A review by the National Audit Office found that the abandoned GoCo project ‘has cost time and money’ including £25m on contractors and advisers.
The NAO said that despite the setbacks the process has ‘yielded some learning’.