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  annual report and accounts 2002-03

Annex B: Summary of Progress Against Public Service Agreement Objectives and Targets

1. Table 19 summarises the Department's performance against the objectives and targets specified in the Public Service Agreement (PSA) and Service Delivery Agreement (SDA) for the period 2001/02 to 2003/04. More information can be found in the relevant paragraphs of the main report. The PSA and SDA - agreed as part of the 2000 Spending Review - are available on the MOD website (http://www.mod.uk).

2. MOD performance against the targets set out in the 1999/00 to 2001/02 PSA was reported in full in the 2000/01 Departmental Performance Report (Cm 5290, November 2001). Most of these targets were either assessed as met in that report, or were carried forward to the current PSA; the latter are shown in Italics in Table 19. An update on progress against the few outstanding targets is summarised in Table 20. The Spending Review 2002 PSA targets are shown in Table 21. Quarterly performance against these targets is available on the website of Her Majesty's Treasury (http://www.hm-treasury.gov.uk/performance/MOD.cfm).

Table 19: Performance Against 2001/02 to 2003/04 Public Service Agreement
PSA Target Performance Indicator Assessment at End of 2002/03 Paragraph
Objective I - Operations and Readiness
1. By 2005, ensure that a minimum of 90% of rapidly available units are at required states of readiness Assessment of the ability of high and medium readiness forces to deploy ready for Operations.

Assessment of the ability to transport the above forces to required location.		 On course

Despite heavy operational demands, of those Force Elements planned to be rapidly available (i.e. those held at very high, high or medium readiness), the proportion at medium readiness or above was: Navy/Marines: 91%, Army: 84%, Air Force: 94%.

Although the overall readiness of Force Elements improved over 2002/03, there were a number of capability areas where weaknesses still existed, particularly in the areas of sustainability and equipment. Significant progress was made on work to develop a more robust measure of military capability across the Services.		 40-44
Establish the Operational Capability of the Joint Rapid Reaction Forces by late 2002/03. Partly met

Although largely met, it was judged that it would not be possible to generate and sustain some Force Elements of JRRF for medium-scale warfighting within the planned timescales.		 47
Provide the strategic lift capability provided by four large aircraft, by 2002. Met

The fleet of four C-17 aircraft formally entered service on 30 September 2001, three months ahead of schedule.		 -
2. Recruit, retain and motivate the personnel needed to meet the manning requirements of the Armed Forces By March 2004, the Navy and Air Force to achieve full manning, and the Army to meet 97% of its manning requirement.

Full manning is defined as +1%/-2% of the requirement.		 On course

The trained strength of the Navy, Army and Air Force was 97.6%, 95.5% and 98.5% respectively of their requirements. All three Services continued to experience critical shortages in certain areas.  		80-83
Navy, Army and Air Force to achieve the single Service guidelines for deployed service. Slippage

New systems mean that it is not possible to give performance against Navy or Army separated service targets. The Royal Air Force narrowly missed their target (3.3% in the last quarter of 2002/03 against a target of 0%) for the percentage of personnel exceeding 140 days of separation in a twelve-month period.
 158
Improve Service Family Accommodation in Great Britain to Standard 1 for condition On course

The Defence Housing Executive upgraded 1,440 Service Family houses to Standard 1 for condition in 2002/03, against an in-year target of 1,200. On 31 March 2003, 50% of long-term requirement was at Standard 1 for condition (over 21,000 properties).
 107
Implement a new pay system for regular forces, which better recognises skills and experience, by April 2001. Met

Pay 2000 was successfully implemented for the vast majority of regular personnel on 1 April 2001. The transition to all Service personnel will be complete by October 2003.		 156
Implement the Armed Forces Overarching Personnel Strategy as guided by its supporting Action Plan. On course

The Action Plan sets targets for each Service to ensure delivery of the Strategy. The end-year performance report for the 2002/03 Armed Forces Overarching Personnel Strategy Action Plan was issued in May and considered by the Defence Management Board in June.



 154
3. Achieve the objectives established by Ministers for military operations in which the UK's Armed Forces are involved. Successful fulfilment of Operations as measured through achievement of Operational Objectives. Met

Operations in Iraq, the Balkans, Sierra Leone and Afghanistan were largely successful, as was Operation FRESCO (emergency cover during the firefighters' strike).		 11-31
Objective II: Defence Policy
4. Working with NATO Allies, implement the decisions of the NATO Washington Summit, including the new Strategic Concept and the Defence Capabilities Iniative, and help to adapt NATO to the new strategic environment A more effective and efficient NATO, including through the implementation of the measures agreed at the Washington Summit. On course

A streamlined NATO Command Structure was approved; NATO leaders made a commitment to transform the Alliance to meet new threats, including terrorism and Weapons of Mass Destruction. NATO has also now approved the comprehensive concept for the NATO Response Force. 		50-53
NATO enlargement is in line with UK interests. On course

Assisted by the UK, the seven invited nations signed Accession Protocols in March 2003.		 -
5. Work with partners so that the European Union cam, by 2003, deploy forces of up to Corps level (50-60,000 personnel) within 60 days, capable of undertaking the full range of Petersberg tasks (from disaster relief to large scale peace-support operations) in and around Europe. This target is known as the Headline Goal. By 2003, EU able to deploy forces of up to Corps level within 60 days, capable of undertaking the full range of Petersberg tasks. Partly met

In May 2003, the European Council concluded that the EU now has operational capability across the full range of Petersberg tasks, but it is limited and constrained by recognised shortfalls. 		54-57
Effective political/military decision making apparatus established within the EU. Minimum duplication with NATO and national machinery. Met

The EU's political and military decision making structures became fully operational in 2001/02.
 -
Effective EU relationships with NATO acceptable to all Members. On course

Agreement was reached between NATO and the EU on 'Berlin Plus', giving the EU access to NATO's planning resources and other key assets.		 -
6. Improved effectiveness of the UK contribution to conflict prevention and management demonstrated by a reduction in the number of people whose lives are affected by violent conflict and by a reduction in potential sources of future conflict, where the UK can make a significant contribution. Joint target with DfiD and FCO. In all countries and regions in which activities are funded by resources from the joint pools, reduced rate in the:
  • incidence, or likelihood, of new conflicts;
  • incidence of conflict-related displacement; and
  • incidence of war related casualties.
 Not yet assessed

Data on performance against the PSA target is not yet available. However, the cross-Whitehall initiative for conflict prevention continued to develop and expand. 2002/03 was particularly busy for MOD, supporting regional conflict-prevention initiatives across the world. 		58-61
Objective III: Battle-Winning Equipment.
7. Develop and deliver battle-winning equipment to time, cost and capability requirement targets that will enable the Armed Forces to provide the military capacity required of them now and in the future. On average, in-year slippage to In Service
Date of less than 10 days for new major projects.		 Not met

A400M and Support Vehicles forecast in-service dates amended, resulting in 54 days average in-year slippage. A400M is a collaborative project and its in-service date was affected by partners' requirements. Support Vehicles received non-compliant bids so the in-service dates have been extended to accommodate tender clarification needs.		 126
On average, in year slippage to In Service Date of less than 4 weeks for existing major projects. Not met

Forecast in-service dates for Astute submarine, Typhoon (Eurofighter), Nimrod, SIFF and Brimstone projects mean over 62 weeks average in-year slippage.
 -
97% of customers' key requirements to be attained. Met

99.5% of key requirements were met.
 -
On average, no increase in major project costs. Met

An in-year cost increase due to Astute, Brimstone, Typhoon (Eurofighter), Nimrod and Attack Helicopter. The Astute and Nimrod increases reflect assessment of Resource Accounting impact of BAE settlement.		 -
Value For Money
8. Achieve value for money through delivering efficiency savings of 3% a year, benefits of the Smart Procurement Initiative of £750M over the period 2001/02 to 2003/04, and continuing the drive for the optimum utilisation of the defence asset base, with disposals of over £600M of assets by March 2004. Reduce the output costs of the Defence Logistics Organisation by 20% in resource terms by 2005, whilst ensuring that it continues to deliver and, where appropriate, improves the quality of its outputs. On course

The DLO achieved 3.5% output cost reductions in 2002/03 against the 2001/02 baseline. The remaining balance to be achieved against this baseline is 10.5% and delivering this is dependent upon the Business Change Programme.

146-147
Identify by 2002 those core Defence estate sites required for continued use by the Department and Armed Forces. Met

The categorisation of Defence Estate sites was completed on time. Further work is now underway to design a strategy to achieve an estate that meets our requirements.		 111
Achieve asset disposals of over £600M by March 2004. On course

Asset disposals totalling £307M were achieved in 2002/03, bringing the total to £419M since April 2001 and setting the course for meeting the target.		 77-78
Deliver £750M Smart Acquisition savings over the period 2001/02 to 2003/04. On course

Reductions of some £2Bn were made to the cost of MOD's planned equipment programme between 1998 and 2008. Smart Acquisition is now an integral part of MOD business and it is no longer possible to attribute savings directly to Smart Acquisition.		 129
Efficiency Savings: Develop new approach to efficiency, subject to agreement between the MOD and HM Treasury. Met

A new, output-based approach to efficiency was formally agreed with HM Treasury as part of Spending Review 2002. Under the new system, 2.7% efficiency gains were made in 2002/03 and the Department remains on track to meet the Treasury-agreed target of 2.5% in each of the next four years.
 143-144
Subject to value for money considerations, complete the Defence Evaluation and Research Agency Public Private Partnership by April 2002. Met

Given the market conditions, it was decided to delay the initial QinetiQ transaction to the end of 2002. The agreement was signed on schedule on 5 December 2002.		 191

 

Table 20: Performance Against 1999/00 to 2001/02 Public Service Agreement - Outstanding Targets
PSA Target Performance Indicator Assessment at End of 2002/03 Paragraph
Logistic and Medical Support
6. Achieve substantial improvement in logistic and medical support. 800 Field Hospital beds at increased readiness. On course

Operation TELIC saw the deployment of a Field Hospital capability of 700 beds.		 138
Departmental Productivity Targets
Review all MOD services and activities over a 5-year period in accordance with the Better Quality Services initiative. % of MOD services reviewed in line with the Better Quality Services initiative. Met

This initiative has concluded. 		-
Reduce number of days lost by civilian staff each year through sickness absence. Average number of days lost per staff year to sickness absence. Partly met

Although civilian sickness absence has reduced from the PSA baseline figure of 8.0 working days lost per staff year to 7.6 days, the Department is expected narrowly to miss the December 2003 target of 7.0 days.		 104-105

 

Table 21: Spending Review 2002 PSA Targets

AIM

Deliver security for the people of the United Kingdom and the Overseas Territories by defending them, including against terrorism, and act as a force for good by strengthening international peace and security.

OBJECTIVES AND PERFORMANCE TARGETS

Objective I: achieve success in the military tasks that we undertake at home and abroad.

  1. Achieve the objectives established by Ministers for Operations and Military Tasks in which the United Kingdom's Armed Forces are involved, including those providing support to our civil communities.

  2. Improve effectiveness of the UK contribution to conflict prevention and management as demonstrated by a reduction in the number of people whose lives are affected by violent conflict and a reduction in potential sources of future conflict, where the UK can make a significant contribution. JOINT TARGET WITH DfID AND FCO

Objective II: be ready to respond to the tasks that might arise.

  1. By 2006 ensure that a minimum of 90% of high-readiness forces are at their required states of readiness with no critical weakness.

  2. Recruit, train, motivate and retain the personnel needed to meet the manning requirement of the Armed Forces, so that by the end of 2004, the Royal Navy and Royal Air Force achieve, and thereafter maintain, manning balance, and that by the end of 2005 the Army achieves, and thereafter maintains, manning balance.

  3. Strengthen European security through an enlarged and modernised NATO, an effective EU military crisis management capacity and enhanced European defence capabilities. JOINT TARGET WITH FCO

Objective III: build for the future.

  1. Develop and deliver to time and cost targets military capability for the future, including battle-winning technology, equipment and systems, matched to the changing strategic environment.

Value for Money

  1. Increase value for money by making improvements in the efficiency and effectiveness of the key processes for delivering military capability. Year-on-year output efficiency gains of 2.5% will be made each year from 2002/03 to 2005/06, including through a 20% output efficiency gain in the Defence Logistics Organisation.

 

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Last Updated: 3 Dec 03