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There are still concerns over whether the MoD's Equipment Plan is affordable. The Ministry underspent by a huge £1.2 billion on the Equipment Plan in 2012-13. Yet it has no idea whether this is because of genuine savings or whether costs are simply being stored up for later years because of delays on projects. This underspending makes it tempting for the Treasury to take them as savings at the expense of the defence equipment capabilities our armed services need. The MoD also does not properly understand the costs of maintenance and technical support, despite the fact that such support costs, £87 billion over ten years, and accounts for over half of the spend on the Equipment Plan budget. It also does not know whether its contingency of £4.7 billion is a sufficient buffer against risks to the Plan. The affordability of the Equipment Plan is heavily reliant on achieving significant savings in some of its major programmes. For example, the MoD has assumed savings of over £2 billion in two large programmes, the Complex Weapons and Submarine Enterprise Performance Programmes, but achieving these will be a challenge. Any changes to these two programmes could jeopardise the expected savings and so put affordability at risk. Project teams do not yet have enough staff with the right skills to employ proper cost and risk management techniques. Treasury and Cabinet Office should look across Government at skills shortages and go for solutions that do not require bureaucratic reorganisations to recruit skilled people at market rates.
The work of the Major Projects Authority is supported but without stronger powers it is unlikely to achieve its aim of a systemic improvement in project delivery across government. The projects in the MPA's portfolio represent a huge and rising cost to the taxpayer. The MPA, however, only has informal influence over departments. It has no powers if a department decides to proceed with a project against MPA advice. It needs to have stronger, more formal mechanisms for driving change, and there should be transparency where ministers or officials have rejected its recommendations. The MPA also needs to focus its efforts more on the early stages of a project, working with departments to ensure that they have devoted sufficient attention to the concept, design and business case for projects before seeking approval. It could also improve its impact by prioritising its work more effectively. The creation of the Major Projects Leadership Academy is welcomed, but the MPA needs to target top decision-makers as well as managers. Nobody in central government is responsible for overseeing projects at a strategic whole-of-government level. The Treasury should take ownership and responsibility for overseeing the government portfolio. The MPA should also publish more information on each project, including the amount spent to date, even if this means reviewing the Government's transparency policy. There is also particular concern that the decision to award a 'reset' rating to the Universal Credit project may have been an attempt to keep information secret and prevent scrutiny
The Department's work to address the affordability gap around the equipment budget and costs appears to have had a positive effect. However, there remain risks to affordability, most significantly around the half of the budget relating to equipment support costs which were not subjected these to the same level of detailed scrutiny as the procurement costs. The Department also does not understand the implications of its £1.2 billion underspend on the Equipment Plan in 2012-13. With the exception of the Queen Elizabeth Class aircraft carriers, there have been no significant cost increases and only minimal in-year delays. In the last year, there was a net increase in costs of £708 million in respect of the 11 projects in the review. The main contribution to this was a £754 million increase in the cost of carriers. Three of the projects the report examined experienced delays during the year, together amounting to 17 months. A third of projects this year reported delays compared to over half of the projects in last year's report. However, the NAO is unable to report on timings for two of the 11 projects - Lightning II and Specialist Vehicles -because the Department has not yet given final approval. This report also includes an examination of the MOD's Complex Weapons Programme, which aims to achieve net financial benefits of £1.2 billion over ten years. Noting that these benefits have already been 'banked', if there are delays or cancellations some of these benefits may be lost
This is a companion volume to the main report (HC 1520-I, ISBN 9780102976786)
Large public projects represent major complex investment and whilst there has been much written about how to develop, manage and deliver such projects, practice still does not match up with expectations. In this book, researchers from the Norwegian Concept Research Programme explore the paradoxes between theory and practice in collaboration with experts in the field of project governance. This book delves into the reality of large public projects, to show how they can be managed effectively and efficiently, recognising the realities of their context. It offers a range of practical conclusions as to the paradoxes of the governance and management of public projects. The international spectrum of authors draw their examples from the UK, Norway, Canada, France, Australia and the Netherlands. Bridging the gap between research, theory and practice, this book will benefit academics and researchers in the field of project management and corporate governance as well as those in the practice of public project governance, civil servants and industry practitioners.
This is a companion volume to the main report (HC 489-I, ISBN 9780102965506)
Defence inflation is a recurring factor in determining defence spending. It is widely reported in official government publications and in the trade press, but remains relatively neglected by defence and peace economists. In this book, international contributors from Finland, Norway, Sweden, the UK and the USA distinguish between defence inflation and cost escalation, and identify the causes of both. They use specific case studies to address a wide variety of theoretical and empirical issues and key questions, including the following: Does defence inflation affect all countries? What are its effects? Why does it occur? How (if at all) can defence inflation be controlled? While most industry and trade press devote considerable ink and space to the discussion of defence inflation, cost escalation, and their consequential impact on the purchasing dollars of the armed forces, economists have been relatively silent. This book aims to rectify this oversight through a multinational survey and analysis of the topic, while also identifying the opportunities for further theoretical and empirical research in the field. This book was originally published as a special issue of the journal Defence and Peace Economics.
This is a companion volume to the main report (HCP 98-I, ISBN 9780102951486) and a third volume (HCP 98-III, ISBN 9780102951509) which examines the landing ship dock (auxiliary) project
Military and defense organizations are a vital component to any nation. In order to maintain the standards of these sectors, new procedures and practices must be implemented. Emerging Strategies in Defense Acquisitions and Military Procurement is a pivotal reference source for the latest scholarly research on the present state of defense organizations, examining reforms and solutions necessary to overcome current limitations and make vast improvements to their infrastructure. Highlighting methodologies and theoretical foundations that promote more effective practices in defense acquisition, this book is ideally designed for academicians, practitioners, researchers, upper-level students, and professionals engaged in defense industries.
The Minerals Yearbook is an annual publication that reviews the mineral and material industries of the United States and foreign countries. The Yearbook contains statistical data on materials and minerals and includes information on economic and technical trends and development. The Minerals Yearbook includes chapters on approximately 90 commodities and over 175 countries. This volume of the Minerals Yearbook provides an annual review of mineral production and trade and of mineral-related government and industry developments in more than 175 foreign countries. Each report includes sections on government policies and programs, environmental issues, trade and production data, industry structure and ownership, commodity sector developments, infrastructure, and a summary outlook.