News story

Business leader to get better deals for MOD contracts

Minister for Defence Equipment, Support and Technology announces appointment of the chair of body to oversee single-source MOD procurement.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Philip Dunne, Minister for Defence Equipment, Support and Technology [Picture: Harland Quarrington, Crown copyright]
Philip Dunne, Minister for Defence Equipment, Support and Technology

Jeremy Newman, who has experience in both the private and public sector, has been selected to chair the Single Source Regulations Office (SSRO) which is a non-departmental public body responsible for regulating single-source procurement by MOD.

The specialist nature of the work of the armed forces means that MOD often has to award contracts without competition either because there is only one supplier or for reasons of national security.

Over half of all MOD’s defence equipment and support contracts are awarded this way, and in the past it has meant that some companies have been able to charge higher prices for their services.

The Defence Reform Act 2014 gave MOD the power to establish the SSRO to ensure best value for money for the taxpayer as well as a fair price for companies.

As chair of the SSRO, Jeremy Newman will be central to reforming this process and ensuring that board decisions comply fully with legislation.

Announcing the appointment, Minister for Defence Equipment, Support and Technology Philip Dunne said:

The SSRO will deliver a more effective and efficient way of procuring the essential equipment our armed forces need to keep the United Kingdom secure, and at the right price.

Jeremy Newman has been appointed from within a very high-calibre field and I am confident that he has the skills, experience and character to make the SSRO a success; both the department and industry partners are looking forward to working with him in the future.

Currently Chair of the Audit Commission, Jeremy Newman is well-placed to set up the SSRO. He also serves as a non-executive director at the Crown Prosecution Service and the Treasury Solicitor’s Department, and was chief executive at BDO, one of the world’s largest accountancy firms.

Published 25 July 2014