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Defence

Defence Logistics Organisation

Commodity Availability Procurement Strategy (CAPS)

The Commodity Availability Procurement Strategy (CAPS) seeks to optimise air platform availability contracting by transferring responsibility for commodity management to prime contractors. The CAPS project team comprises resources from Category Management, BAE Systems, Agusta Westland and Integrated Project Teams (IPTS). The team has investigated the scope of Commodities within the Air environment, carrying out the analysis that will ultimately lead to the placing of new contracts with industry, increasing availability levels, improving the support chain and reducing MOD dependencies by effective incentivisation.

CAPS team Logo. Opens in a new window.

The Defence Logistics Organisation strategy is to transform logistic support to the front line by moving away from traditional arrangements to contracting for availability, where prime contractors are responsible for delivering platforms and equipment to agreed performance and output standards.

The CAPS project aims to transfer the responsibility of commodity items from the DLO to prime contractors under incentivised end-to-end Platform Prime Partnered Solutions and Integrated Operational Support arrangements. These arrangements will create the environment for increased platform availability, reduced overall support costs and the ability to operate under a reduced manpower ceiling.

The phases of CAPS are as follows:

The Assessment Phase

The CAPS project, currently in the assessment phase, is due to go before the MOD Investment Appraisal Board (IAB) in summer 2007. There are six contractors included in Wave 1: SELEX, Smiths Aerospace, Claverham, Goodrich, Thales and Honeywell. Any contractor involved in any support chain managed by one of these six contractors will be added to the assessment phase.

Evaluation Phase

The evaluation phase is the period between IAB Main Gate approval to Contract Award where the final contents of submitted bids and the timescales for implementation are agreed.

Implementation Phase

CAPS Implementation will be in waves in accordance with the agreed CAPS Programme Plan. Each wave may require approval via a Main Gate submission to the IAB.