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Defence

Defence Logistics Organisation

MoD Partnering Support Group (MoD PSG)

The MoD Partnering Support Group (MoD PSG) is a small group of advisors with the remit to provide practical project advice and support to teams progressing contracts encompassing partnering elements. It operates across MoD, working closely with the Department’s Commercial Services Group who own the partnering policy.

The group was originally known as the Public Private Partnership Group (PPPG) and had responsibility for both Partnering and PFI projects in the DLO. However, in 2004 the MoD Private Finance Unit (MoD PFU) took over responsibility for all PFI projects. The PPPG decided that it would be appropriate to change its name to reflect the fact it dealt exclusively with Partnering projects and so became the Partnering Support Group. The PSG originally had responsibility for Partnering projects in the Defence Logistics Organisation (DLO) but in 2005 the group took on a pan-MoD role and is now the main source of best practice for Partnering issues within MoD.

The group supports teams from a project’s initial conception through to contract delivery and beyond, providing advice on issues that are wider than the heart of the relationship. Their defence-wide remit allows them to identify and spread best practice, helping projects avoid problems and pitfalls. They do this through working on a one to one basis with individual project teams through focussed workshops with Integrated Project Teams, closer working with Category Management Teams and larger events such as  Contractor Logistic Support conferences.

Future Direction

The Defence Industrial Strategy (DIS) sets out MoD’s future procurement direction and in particular seeks to encourage closer working relationships with Industry. The PSG are actively involved in supporting the DIS, in particular the development of ‘Contracting For Availability' (CFA) contracts where the focus is on paying for availability and use of equipment rather than the purchase of spares.

 

Defence Logistics Organisation

in this section:

Services Provided

The group provides advice and support on the following:

  • Balance Sheet Treatment
  • Economic Evaluation
  • Financial Evaluation
  • Learning From Experience
  • Procurement Development
  • Procurement Strategy
  • TUPE
  • Use of Advisors
  • Wider Markets

Performance and Successes

  • In the past 2 years the PSG has been consulted on some 60 projects (ranging from ad hoc advice on specific issues to continued support through a range of project phases).
  • The PSG is recognised as the formal point of entry to the NAO when considering accounting treatment (balance sheet position) for DLO projects.
  • The PSG has been a key player in the redrafting and development of Business Improvement policy which was formulated in partnership with the Trades Unions and the MoD Economic Advisor.

Enquiries should be directed to:

MoD PSG Support Manager

Email: MODPSG-Enquiries@mod.uk

Definition of Partnering

MoD originally classed Partnering as coming under Public Private Partnerships (PPPs). However, HM Treasury has recently confirmed that PPP is now limited to - PFI; joint ventures with Industry (known as the Wider Markets Initiative); and a sale of a minority or majority stake in a public sector asset (e.g. QinetiQ). Procurements such as outsourcing, partnering and prime contracting (which originally fell under MoD’s traditional definition of PPP) are seen by HM Treasury as variations of conventional procurements.