Tuesday, October 19, 2010

Termination of the UK Defence Training Review ("DTR") Program - Justice belatedly served

Termination of the UK Defence Training Review ("DTR") Program - Justice belatedly served
October 19th, 2010



Today it was announced in the House of Commons that the DTR programme was cancelled (see below for announcement). The intent behind DTR was to outsource a variety of non-battlefield training requirements such as driver training, basic engineering skills and catering to industry for a 30 year period.

The program was split into two 'packages' of training needs - Package One being engineering led and Package Two the less essential, though expensive to execute items.

At the time it could be suggested that it was highly innapropriate for HMG to select a bidder for a publicly funded program in which the Government owned a financial stake - the value of which would vary depending on QinetiQ's business prospects. The Metrix consortium, majority owned by QinetiQ (with a Carlyle Group minority interest) chased a programme to provide training for vehicle drivers, cooks etc. Hardly the forte of a commercial organisation pitching itself as the bastion of British defence science.

Split into two packages, arguably the second was a bone to keep the appearance of competition and result in many pounds spent by bidding teams for a foregone conclusion.

Red Dragon, the DARA aircraft repair facility at St. Athan in South Wales was a real beneficiary of the Wales Labour Party political caucus, who probably like Scotland have no love for the Conservative Government - which is now clearly being repaid in spades....

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The termination of the Defence Training Rationalisation (DTR) project and the Metrix Consortium's appointment as preferred bidder has been announced by Defence Secretary Dr Liam Fox today, 19 October 2010.

The DTR project intended to combine the technical and engineering training for the Royal Navy, Army and Royal Air Force on a single site at St Athan in South Wales.

In a written ministerial statement to Parliament today, Dr Fox said:

"The Metrix Consortium was appointed as preferred bidder in January 2007 subject to it developing an affordable and value for money contract proposal.

"Given the significance of this project and the opportunity to provide a world-class training facility, the Ministry of Defence has worked tirelessly to deliver this project.

"However, it is now clear that Metrix cannot deliver an affordable, commercially-robust proposal within the prescribed period and it has therefore been necessary to terminate the DTR procurement and Metrix's appointment as preferred bidder.

"Technical training, collocated on as few sites as possible, remains in our view the best solution for our Armed Forces. Equally, St Athan was previously chosen as the best location on which to collocate that training for good reasons, and we still hope to base our future defence training solution there.

"We will however now carry out some work before finalising the best way ahead; including to confirm both our training and estates requirement, and the best way to structure the solution that will meet them.

"To ensure momentum is not lost, work on the alternative options will begin as soon as possible and we hope to be able to announce our future plans in the spring."

Training will continue to be delivered at current training locations as it would have done under the original PFI (Private Finance Initiative) proposal. These sites are: Arborfield, Blandford, Bordon, Cosford, Cranwell, Digby, Fareham (Collingwood), Gosport (Sultan) and St Athan.

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