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Defence Training Review

With permission, Mr. Speaker, I would like to make a statement about the defence training review rationalisation programme. Before I do so, however, I am sure that the whole House will join me in extending their condolences to the friends, family and colleagues of Marine Thomas Curry, Lance Corporal Mathew Ford and Kingsman Alexander Green, who were killed in operations in Afghanistan and Iraq over the weekend and earlier this week. I pay tribute to their bravery, professionalism and courage. No words can express my admiration for our armed forces and the work that they do daily in the most difficult and challenging of circumstances. In November 2004, the Ministry of Defence issued invitations to negotiate for two contractual packages under the defence training review rationalisation programme. The programme is a large and complex public-private partnership project that seeks to transform the way in which we deliver six types of specialist training on a defence-wide basis to support better the future needs of the armed forces. All bidders have put in strong bids, and I am grateful to Members in all parts of the House, who have expressed such strong support for relevant bids. I can now report that, following a detailed evaluation process, the bids from the Metrix consortium have been judged to offer the best technical and prospective value-for-money solutions to the defence training review requirement for both packages 1 and 2. As a result, we are appointing Metrix as preferred bidder for package 1 and provisional preferred bidder for package 2. Metrix has won each package independently and separately, and we now plan to take forward negotiations with the consortium. On 18 December, the MC3 consortium submitted an unsolicited last minute alternative proposal for package 1. That proposal was considered, but was quickly discounted as failing to meet the requirements of the invitation to negotiate. As an unsolicited proposal it was also outside the rules of the competition. I must emphasise that identifying the best training solution for defence has been the primary consideration. The evaluation has involved some 200 subject matter experts. The training element was overseen by Professor Molyneux, an independent expert in modern training technology and e-learning. For package 1 we are confident that we have a broadly affordable solution that will deliver modern and efficient aeronautical engineering, electro-mechanical engineering and communications and information systems training. Currently, that is delivered at nine locations, involving some 3,500 military and civilian staff providing instruction to 6,500 defence trainees at any one time. Over a five-year transition period starting in late 2008, Metrix proposes to rationalise the estate, initially on to two major sites, St. Athan and HMS Sultan. Marine engineering training will remain at HMS Sultan until 2017, when that too will relocate to St. Athan. The St. Athan site will be largely a new-build facility. A small enclave will, however, be retained at Bordon for vehicle recovery training, and some communications training will continue to be delivered at HMS Collingwood. Overall, that will have a varying impact across nine sites: Arborfield, Bordon, Blandford, HMS Collingwood, Cosford, RAF Cranwell, RAF Digby, HMS Sultan and, of course, St. Athan. Package 2 is more complex. It aims to provide training for logistics and personnel administration, police and guarding, security, languages, intelligence and photography. Currently, that is delivered at 18 locations across the United Kingdom, involving some 2,900 military and civilian staff, and 4,500 trainees. The evaluation process identified Metrix as a clear winner for package 2, but we have more work to do to resolve the outstanding issues to address a significant affordability gap and to explore possible synergies with package 1, which should deliver improved value for money across the programme as a whole. Until we have resolved those issues with the bidder we cannot confirm the final approach that the MOD will take, including whether all, or part of, package 2 goes forward. However, it is only right that we inform the losing bidder that it has been unsuccessful. Starting in late 2008, the current Metrix proposals would again see rationalisation to St. Athan over a five-year period. However, all training currently undertaken at Leconfield, Wethersfield and a number of smaller federated units would remain at those sites, as would the majority of training currently delivered at Chicksands. Together, these proposals will embrace the very best training methods available today, in an environment designed for military learning. Full advantage will be taken of the latest technology for simulators and distributed learning solutions. The proposals will deliver top-grade single living accommodation for all ranks, with single en-suite rooms for many. New recreational and sports facilities will enhance the quality of life for our trainees, staff and their families. I take the implications of the change programme for our people very seriously. The impact is likely to be significant for civilian staff required to transfer to the new partner. They will, of course, be protected in full accordance with the TUPE regulations, which cover the transfer of undertakings. However, some redundancies following transfer cannot be ruled out, and should any occur, they will be taken forward sensitively and in full consultation with trade unions and staff. I do not underestimate how disappointed some hon. Members and their constituents will be where we are seeking to withdraw training establishments. That will be most keenly felt in the west midlands at Cosford, and in North Dorset at Blandford. While not wishing to pre-empt any specific decisions, I am pleased to say that there are no plans to close either site. The current training at each will continue until 2011, and the Department is exploring a number of proposals for the potential future defence use of both Cosford and Blandford. Those proposals will be announced, subject to the normal review and approvals processes, but a military presence is expected to remain at both sites in the future. At Cosford, Metrix proposes building a learning resource centre and developing a national training research and development support centre. In addition, it will work with the Department to examine how the programme might support the establishment of the national manufacturing skills academy. It has been suggested that the Ministry of Defence has a conflict of interest by virtue of its minority shareholding in QinetiQ, which is part of the Metrix consortium. That was recognised at the outset. Frankly, it is not unusual for QinetiQ to be a member of a consortium bidding for MOD work, or to be a potential beneficiary as a subcontractor. Therefore, we have put in place stringent steps to separate the roles of customer and owner in relation to QinetiQ. Those steps were made plain in the prospectus to investors when QinetiQ was floated on the stock market last year, and a copy was placed at the time in the Library. I am content that that the DTR evaluation process did not take improper account of the QinetiQ shareholding. My hon. Friend the Under-Secretary of State for Defence and I have written today to all those hon. Members whose constituencies are affected by this announcement, with details of the changes as set out in the winning bidders’ current proposals. As the way forward becomes clearer, I will update the House. I have also made available in the Library a number of key documents, including the invitations to negotiate and Professor Molyneux’s letter validating the evaluation process. I conclude by emphasising again that the bids from the Metrix consortium offered the best technical and value-for-money solutions to meet the future needs of defence specialist training. As I stated earlier, we now plan to take forward negotiations over the coming months with the Metrix consortium. This remains an extremely complex public-private partnership programme and a number of significant issues remain to be resolved, particularly over the proposals for package 2. I do not plan to make any further announcements until that work has been completed.