Last December, the Defence Industrial Strategy (DIS) set challenges for both industry and the MoD. Today, as its response to that challenge the MoD is publishing its 'Enabling Acquisition Change Report'.

The report reviews current structures, organisations and processes in order to maximise the MoD's ability to deliver a key objective of the DIS - Through Life Capability Management - which focuses of the costs and capabilities of equipment throughout its life, not just purchase price.

The report recommends the merger of Defence Procurement Agency and Defence Logistics Organisation to form a new integrated procurement and support organisation a single entity responsible for the procurement, maintenance and containment of military capability.

Secretary of State for Defence, Des Browne, said:

"Our Armed Forces play a crucial role in ensuring stability and peace in the world. They deserve the best equipment that we can give them. In today's world technology changes quickly and the requirement of our Armed Forces changes with it.

"Our ability to offer our forces the most up-to-date equipment that we can will depend on our ability to keep up. Today's announcement provides a basis for us to do just that.It is about providing better support for our Armed Forces by ensuring every pound of tax payers money is used to the best effect."

Minister for Defence Procurement, Lord Drayson, said:

"The MOD has been making progress when it comes to buying making sure we get the best equipment we can for our forces. They deserve praise for that but we recognise that we can improve further. Our aim is to provide an even better service for the Armed Forces and this will help make that goal a reality.

"We are asking industry to work differently with us and to restructure to better meet our needs. We are working closely with them to achieve this.

"This report is designed to impRove our "Through Life Capability Management" and make the department more agile against a background of rapid progress in the security environment and technology."

The proposed changes in the report will improve financial planning by ensuring that new equipment and its in-service support costs are planned more coherently.

Consistent with today's announcement, and in order to help the new organisation to work as one, MoD is also announcing the collocation of elements of the DLO and DPA in the Bath Bristol area. This collocation will save around pound200M over 25 years, money that can be reinvested in the front line.

This decision involves the DLO reducing its presence at Andover and RAF Wyton and withdrawing from a number of other, smaller sites over the next five years.

The DLO site being vacated at Andover South has been named as preferred site for the new HQ Land Forces Headquarters and the site vacated at RAF Wyton will become home to those staff at RAF Brampton who are not affected by DLO relocation.

Adam Ingram, Minister for the Armed Forces said:

"I understand these decisions will impact on employees and their families in the locations mentioned and we will provide appropriate support for those affected. That said, we owe it to our Service men and women to modernise the support we provide to the Armed Forces to ensure our resources are directed to the Front Line. These changes are an essential part of this strategy and will be subject to formal Trades Union consultation."

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