Corporate report

Defence Science and Technology Laboratory (Dstl): Framework Document, July 2021

Updated 9 July 2021

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Introduction and Purpose

The Defence Science and Technology Laboratory (Dstl) is an Arm’s Length Body of the Ministry of Defence. It delivers high impact science and cutting-edge technology for the defence, security and prosperity of the UK. In order to achieve this, Dstl will be at the forefront of UK defence science and technology (S&T) – putting the science inside UK defence and security both today and in the future. Dstl’s strategic business objectives, financial plan, key strategic risks and key performance targets can be found in the Dstl Corporate Plan available at GOV.UK.

Dstl staff, predominantly civil servants, are primarily scientists and engineers. They operate across a diverse range of capabilities. Dstl is responsible for the stewarding of UK Defence and Security S&T capabilities and works with industry, academia, wider Government and its allies to build on that capability. Dstl’s headquarters are at Porton Down in Wiltshire.

This Framework Document has been drawn up by the Ministry of Defence in consultation with Dstl, and sets out the framework within which Dstl operates. It does not convey any legal powers or responsibilities. Copies of the document and any subsequent amendments have been placed in the Libraries of both Houses of Parliament and made available to members of the public on the Dstl website, part of GOV.UK.

Status

Dstl is an Executive Agency of the Ministry of Defence and a Public Sector Research Establishment. It derives its operating cost budget from a system of charging to recover its cash operating costs from its customers across the Ministry of Defence and wider government, and from full economic cost charges to its external customers. Dstl’s capital budget and exceptional restructuring costs are allocated by the Ministry of Defence’s central budgetary planning process.

Dstl’s status is reviewed at least once every five years. The Framework Document is reviewed at least every three years or following major changes in governance or role; this includes reviewing governance arrangements to ensure they remain as effective and efficient as possible.

Governance Principles

The Ministry of Defence is both Dstl’s owner and principal customer. In line with best governance practice, the Ministry of Defence separates the operation of these two roles:

  • The ownership role focuses on Dstl as an Executive Agency, ensuring it has the right business strategy and plans in place, the oversight and resources needed to deliver them, and monitoring its overall organisational ‘health’ and performance. Details are at Annex A.
  • The customer or ‘commissioning’ role includes the mechanisms for specifying the individual outputs and outcomes Dstl is required to achieve for customers and the mechanisms for monitoring that these are being delivered. An overview of commissioning can be found at Annex B.

Dstl follows the Ministry of Defence’s strategic direction, strategies and policies to ensure the effective delivery of wider Departmental objectives. Dstl also complies with the corporate rules and standards set by Functional Leadership and wider Government policy; the main elements are summarised at Annexes C and D respectively. However, as an Executive Agency, Dstl has significant exemptions from Ministry of Defence policies to allow it to perform its functions in a value for money, sustainable manner. These exemptions are set out in Annexes E and F.

Where Dstl considers that there is a tension between Departmental policy/strategy and the arrangements as set out in this Agreement, then the Dstl Chief Executive can escalate these issues to the relevant Permanent Secretary, after taking relevant advice from the Sponsor.

Central Governance Roles

The following figures play key roles in the oversight, commissioning and management of Dstl. Further details on these roles can be found at Annex A:

  • The Secretary of State for Defence is ultimately accountable to Parliament for all aspects of Dstl’s activities and performance.
  • The Minister for Defence Procurement is the Responsible Minister who, on behalf of the Secretary of State for Defence, sets the strategic aims for Dstl, provides strategic oversight and direction, and accounts for Dstl’s business in Parliament.
  • As the Ministry of Defence Principal Accounting Officer, the relevant Permanent Secretary is responsible for the overall operation of the Ministry of Defence and its arms-length bodies, sponsoring its aims in central government, in accordance with Managing Public Money (MPM).
  • The Ministry of Defence Chief Operating Officer (COO) is Dstl’s Sponsor: the senior official in Defence who supports the Responsible Minister and the relevant Permanent Secretary by leading the practical aspects of the ownership role, including ensuring that appropriate mechanisms are in place for Dstl to operate efficiently and effectively, and the organisation is subject to appropriate corporate governance.
  • The Ministry of Defence’s CSA supports the Responsible Minister and relevant Permanent Secretary by setting Defence S&T strategic direction, overseeing the setting of S&T strategies and policies, commissioning the Defence S&T Portfolio, providing the expert scientific advice function, ensuring coherence across all Defence and wider related S&T activities, and collaborating with wider Government on S&T development and objectives. The CSA is supported by Defence Science & Technology (DST), of Ministry of Defence Head Office.
  • The Chief Executive of Dstl is responsible for leading Dstl and its executive team, developing Dstl’s strategy, Corporate Plan and Business Plan; ensuring Dstl is well managed and delivers its commissioned services efficiently and effectively; and complies with all necessary departmental and corporate governance policies and standards in line with this Framework Document and their letter of delegation from the relevant Permanent Secretary. The Chief Executive is the Accounting Officer for Dstl, and operates in accordance with MPM.
  • The Chair of the Dstl Board is a non-executive appointment from outside the Ministry of Defence. The Chair’s role is to support the Responsible Minister and relevant Permanent Secretary, through the Sponsor, by leading the Dstl Board, setting the Board’s agenda, and ensuring the Board provides support and challenge to the Dstl Executive team in developing Dstl’s strategy and delivering against Dstl’s Corporate Plan and Business Plan. 

Annexes:

Annex A: Details of governance and accountabilities

Annex B: Commissioning

Annex C: Functional Leadership

Annex D: Policies and specific responsibilities applicable to Dstl

Annex E: Summary of existing policy exemptions

Annex F: Management of Dstl staff

Annex G: Overview of the Defence, Technology and Innovation Board (DTIB)

Annex H: Dstl Corporate Plan and Business Plan

Annex I: Annual Report and Accounts (ARAc)

Annex A: Details of governance and accountabilities

This annex describes the key roles and accountabilities that apply to the ownership function of Dstl governance. The ownership structure is designed to manage the risk of Dstl’s operations to the Department and encourage diversity of thought and reasonable challenge.

Corporate oversight of Dstl is delivered by the Ministry of Defence Chief Operating Officer (the Sponsor) on behalf of the relevant Permanent Secretary and the Responsible Minister. The Sponsor acts as the link between Dstl at executive level and the senior officials of the Ministry of Defence, and also with ministers. This is supplemented by an independently-chaired Board.

Strategic direction, relating to science and technology issues and activities, is delivered by the Ministry of Defence Chief Scientific Adviser, on behalf of the relevant Permanent Secretary and the Responsible Minister. The CSA provides assurance of Dstl’s delivery of the Defence S&T Portfolio, as part of their responsibilities to Ministers. CSA works alongside the Sponsor, particularly relating to Dstl delivery targets.

These roles all support the Secretary of State for Defence, who is ultimately accountable to Parliament for Dstl’s performance. Details of the governance roles and accountabilities are described in the following paragraphs.

A-1: Ministerial Responsibility

The Secretary of State is ultimately accountable to Parliament for Dstl’s performance. They nominate a ‘Responsible Minister’ to manage this accountability on their behalf. In the case of Dstl, the Minister for Defence Procurement is the Responsible Minister. The Responsible Minister does not get involved in day-to-day governance matters of Dstl; however, they do have control over the strategic aims and direction of the organisation. While the Chair and Chief Executive have a standing right of access to the Responsible Minister, they generally refer issues to the Sponsor in the first instance, and then the relevant Permanent Secretary.

The Responsible Minister:

  • Approves Dstl’s Corporate Plan, which includes Dstl’s strategic objectives and annual financial and performance targets (see Annex H);
  • Approves the appointment of the Dstl Chair;
  • Accounts for Dstl’s business in Parliament, by answering parliamentary questions and responding to ministerial correspondence.

A-2: Ministry of Defence Principal Accounting Officer Responsibilities

The Ministry of Defence’s relevant Permanent Secretary is the Department’s Principal Accounting Officer. They are responsible for the overall operation of the Ministry of Defence and its arms-length bodies, in accordance with MPM. They sponsor the aims of Defence’s arms-length bodies in central government, including Dstl. Specific responsibilities include:

  • Advising the Responsible Minister on:
    • An appropriate framework of objectives and targets for Dstl, in the light of the Ministry of Defence’s wider strategic aims and priorities;
    • An appropriate budget for Dstl, in the light of the Ministry of Defence’s overall public expenditure priorities; and
    • How well Dstl is achieving its strategic objectives and whether it is delivering value for money
  • Ensuring arrangements are in place in order to:
    • Monitor Dstl’s activities;
    • Address significant problems in Dstl, making interventions as necessary;
    • Periodically carry out an assessment of the risks both to the Ministry of Defence and Dstl’s objectives and activities;
    • Inform Dstl of relevant government policy in a timely manner; and
    • Bring concerns about the activities of Dstl to the Dstl Board, and, as appropriate to the Defence Board, requiring explanations and assurances that appropriate action has been taken.

A-3: The Sponsor

For most arms-length bodies, including Dstl, the relevant Permanent Secretary selects a Sponsor to act on their behalf. For Dstl, the Sponsor is the Ministry of Defence COO. The Sponsor is the individual primarily responsible for managing the interface between the Ministry of Defence and Dstl, in terms of Dstl’s effective corporate performance, and to champion its impact. They are the main source of advice to the Responsible Minister on the discharge of their responsibilities in respect of Dstl, and support Defence’s Principal Accounting Officer in their responsibilities toward Dstl.

The Sponsor is responsible for:

  • On behalf of the relevant Permanent Secretary, holding the Chief Executive to account for delivery of the Corporate Plan, objectives and targets within it, and Dstl’s efficient, safe and effective operation, in line with agreed policy constraints and delegations;
  • On behalf of the relevant Permanent Secretary, holding the Chair to account for leadership of the Board and the Board’s effectiveness;
  • On behalf of the Responsible Minister, holding the Chair and Chief Executive to account for support required by the Minister in their ministerial duties or in relation to their Parliamentary accountability;
  • Endorsing the Dstl Corporate Plan for Responsible Minister approval;
  • Delegating authority to the Chief Executive to commit Defence funds towards the achievement of Dstl objectives, captured in the Budget Holder Letter of Delegation;
  • Providing advice and support to the Chief Executive and Chair, and providing their link into the Department and wider government;
  • Representing Defence’s interests in Dstl at Defence boards and decision-making fora;
  • Promoting policies and change within Defence that would support Dstl in delivering its objectives;
  • Monitoring Dstl’s compliance with Functional Leadership and Defence policy in delivery of their business;
  • Recommending to the Responsible Minister individuals for appointment to the role of Dstl Chair.

The Sponsor is also the Line Manager of the Dstl Chief Executive; this additional role consolidates the Sponsor’s responsibility for holding the Chief Executive to account. As Line Manager, the Ministry of Defence COO is responsible for the appointment of the Chief Executive in consultation with the Dstl Chair and CSA.

All submissions from Dstl to the Responsible Minister are copied to the Sponsor, see Annex D.

The Ministry of Defence’s Sponsorship and Organisational Policy directorate provides day-to-day support to the Sponsor and Dstl.

A-4: The Ministry of Defence Chief Scientific Adviser

The CSA is the head of all Defence S&T. The CSA is the main source of advice to Ministers on matters scientific and technological pertaining to Defence. The CSA is supported by the directorate of Defence Science & Technology, and is responsible for:

  • setting the strategic direction for Defence S&T, including policies and strategies;
  • leading the commissioning of the Defence S&T Portfolio, and holding Dstl to account for its delivery;
  • cohering and assuring the expert advice on S&T issues provided by Dstl
  • maintaining strategic oversight of all Defence S&T activity, including Dstl activity not contained within the Defence S&T Portfolio; and
  • taking strategic S&T capability decisions for the Ministry of Defence.

All submissions from Dstl to the Responsible Minister are copied to the CSA, unless Dstl provides an appropriate rationale for not including them.

A-5: Dstl Chief Executive as Dstl’s Accounting Officer

The Dstl Chief Executive leads and manages Dstl in all aspects of its operations, within the framework described in the Budget Holder Letter of Delegation from the relevant Permanent Secretary. The Chief Executive is appointed by the Sponsor, taking into account advice from the Dstl Chair and the Chief Scientific Adviser. The Chief Executive has a standing right of access to the Sponsor, Chief Scientific Adviser, the relevant Permanent Secretary and the Responsible Minister.

Particular responsibilities include:

  • Establishing the Dstl Corporate Plan, in agreement with the Ministry of Defence;
  • Informing the Ministry of Defence of progress against objectives, risks to their delivery, and demonstrating how resources are being used to achieve objectives;
  • Ensuring timely information and forecasts on performance and finance are provided to the Sponsor, and that any significant problems are notified to the Sponsor in a timely fashion;
  • Ensuring timely delivery of the S&T Portfolio;
  • As the Senior Duty Holder for Dstl, running Dstl safely.
  • Advising the Board on Dstl’s performance against objectives, risks and forecasts;
  • Advising the Board on Dstl’s compliance with Ministry of Defence, HM Treasury and Cabinet Office rules and policies;
  • Taking action as set out in paragraph 3.8.6 of Managing Public Money, if the Board, or the Dstl Chair, is contemplating a course of action involving a transaction which the Chief Executive considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical.

The Chief Executive is Dstl’s Accounting Officer, designated by the Ministry of Defence’s Principal Accounting Officer (the relevant Permanent Secretary), and operates in accordance with Managing Pubic Money. As the Dstl Accounting Officer, the Chief Executive may be called to account directly by Parliament (See Managing Public Money 3.1.2.). This designation is conveyed through the Accounting Officer letter from the Ministry of Defence’s Principal Accounting Officer, the relevant Permanent Secretary.

As Dstl’s Accounting Officer, the Chief Executive is personally responsible for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money and feasibility in the handling of those public funds; and for the day to day operations and management of Dstl. They ensure that Dstl is run on the basis of standards set out in Managing Public Money.

Specific accountabilities to Parliament of Dstl’s Accounting Officer include:

  • Signing the Dstl Annual Report and Accounts (ARAc) (see Annex I) and Governance Statement, ensuring that proper records are kept and that accounts are properly prepared;
  • Ensuring that effective procedures for handling complaints about Dstl are established and widely communicated;
  • Acting in accordance with Managing Public Money, this Framework Document and other instructions and policy as issued by the Ministry of Defence, HM Treasury and the Cabinet Office;
  • Giving evidence, normally with the Ministry of Defence’s Principal Accounting Officer, when summoned before the Public Accounts Committee.

A-6: Dstl Board

The Dstl Board exercises strategic oversight of Dstl in the delivery of its objectives. Its key roles are to:

  • Provide a forum for independent, non-executive, support and reasonable challenge to the Dstl Chief Executive and Executive Directors;
  • Review and endorse the Corporate Plan, Business plans and investment proposals above the delegation of the Chief Executive before submission to the Department;
  • Monitor performance and outputs against plans and forecasts;
  • Ensure that Dstl is operating in compliance with relevant policies and standards.

The Board comprises:

  • An independent non-executive Chair;
  • Chief Executive;
  • Independent Non-Executive Members (NEMs). The role of the NEMs is to provide expert advice, guidance and challenge to the Dstl Executive team;
  • The Ministry of Defence’s formal NEM, representing the Ministry of Defence on the Board, who is consulted on matters that have consequences for the wider Department or Government. The Ministry of Defence NEM will also advise the Sponsor on the strategic direction and performance of Dstl and the effectiveness of the Chair;
  • Dstl Chief Finance Officer;
  • Executive(s) as agreed between the Chair and Chief Executive.

The Chair, in consultation with the Chief Executive, will ensure that the effectiveness of the Board is reviewed regularly, including an independent assessment by a suitable external expert every three years. The Board is supported by an Audit and Risk Assurance Committee, chaired by a NEM.

A-7: The Dstl Chair

The Chair is accountable to the relevant Permanent Secretary, via the Sponsor, for leading the Dstl Board and ensuring its effectiveness in all aspects of its role. They are accountable to the Responsible Minister for any support required in their ministerial duties and Parliamentary business, and in conjunction with the Chief Executive, ensuring the Minister is informed, to enable them to discharge their responsibilities. The Chair has a standing right of access to the Sponsor, the Chief Scientific Adviser, the relevant Permanent Secretary and the Responsible Minister.

The Chair is appointed by the Responsible Minister for a fixed term, normally up to three years, following a process of open competition managed by the Ministry of Defence following the principles of the Governance Code on Public Appointments. The Chair may be reappointed for a further term, subject to meeting required performance standards, but the total appointment should not normally exceed six years. The performance of the Chair is assessed annually by the Sponsor.

The Chair is specifically responsible for:

  • Setting the Board’s forward agenda;
  • Leading the Board in ensuring that its culture, procedures and standards result in its effective operation;
  • Ensuring that the Board takes account of Ministry of Defence and wider government policies, rules and guidance;
  • Ensuring the performance of the Board is reviewed regularly, in consultation with the Chief Executive;
  • Ensuring the Board has an appropriate balance of skills, and Board members are fully briefed in terms of their duties and responsibilities;
  • Leading the appointment of independent NEMs, and assessing the performance of NEMs annually.

A-8: Dstl NEMs

The Dstl Chair leads the appointment of independent NEMs following a process of open and fair competition, managed by Dstl. Appointments are normally for a fixed-term of up to three years which may be extended for a further term up to a maximum of six years, subject to NEMs meeting required performance standards, including their ability to continue to provide diverse and dissenting views in support of reasonable challenge. The performance of the NEMs is assessed annually by the Chair.

The Chair will agree with individual NEMs what wider functions they will discharge and what activities they will undertake to extract maximum value from their experience, support Dstl and ensure their familiarity with its operations and relationships.

The Sponsor appoints a senior civil servant to be the Ministry of Defence’s NEM on the Dstl Board, to provide a link back to the Ministry of Defence and to support the Sponsor in identifying where they need to ask more questions and probe more deeply into Dstl performance.

A-9: Reporting performance to the Ministry of Defence

Dstl operates management, information and accounting systems that enable it to review its financial and non-financial performance against plans and budgets in a timely and effective manner. It reports financial and non-financial performance, including achievement of objectives, to the Ministry of Defence on a regular basis through Performance and Risk Reviews, led by the Sponsor at least twice per year. The Chair provides an update on strategic priorities and the Chief Executive presents a summary of performance data on Dstl and explains any variance from the Corporate Plan. The Sponsor draws upon advice from the Ministry of Defence NEM and the Chief Scientific Adviser as required.

Performance and Risk Reviews cover the following topics (not exhaustive), supporting details and evidence of which must be submitted in advance to the Sponsor by the Chief Executive:

  • Performance update against the Dstl Corporate Plan (Including the annual financial and performance targets agreed by the Responsible Minister, endorsed by the Sponsor and the CSA.);
  • Dstl’s financial performance and strategic risks;
  • Dstl’s expenditure against its CDEL budget boundary;
  • Updates on major capital expenditure projects where funded by Head Office;
  • Transformation programmes and any other major change programmes.

In addition to reporting to Performance and Risk Reviews, Dstl reports its performance in delivering the S&T Portfolio to CSA through DST. This includes the spend, forecast and responses to requested efficiencies relating to the S&T Portfolio.

Annex B: Commissioning

DST commissions the S&T Portfolio, which comprises the CSA’s S&T Portfolio, the wider Dstl-delivered S&T portfolio (as programme Senior Responsible Owners (SROs) through design and prioritisation to improve efficiency, coherence and exploitation) and the management of S&T Capability, which includes capability health monitoring and stewardship. The S&T Portfolio supports the delivery of the CSA’s responsibilities and strategic objectives; DST Commissioners are the Senior Responsible Owners for the programmes that sit within the S&T Portfolio.

The Defence Technology & Innovation Board (DTIB) provides oversight of the S&T Enterprise, the Ministry of Defence’s S&T strategy (encompassing both defence and security requirements) and the achievement of S&T objectives within Defence.

The DTIB also oversees Defence S&T capability and health and ensures that Defence has access to the right S&T capability and capacity (both internal and external to Dstl) to meet current and future requirements. A description of the key roles of the DTIB is at Annex G.

S&T Portfolio Framework

Dstl provides services and outputs to Defence, Other Government Departments, and non-Exchequer customers. These services and outputs are managed as one S&T Portfolio, overseen by DST on behalf of CSA. Dstl is held to account by its customers for the delivery of agreed outcomes, and by CSA for the overall delivery of the S&T Portfolio. This can be described by outlining the four categories of customer:

Ministry of Defence customers

1. Ministry of Defence S&T research and development

  • On behalf of the CSA, DST commissions Dstl to deliver a programme of scientific research and development (the S&T Portfolio). DST ensures that CSA’s S&T Portfolio reflects Defence priorities, and that Dstl stewards the required capabilities for the near and long term, as reflected in the Ministry of Defence’s S&T Strategy.

2. Ministry of Defence scientific support and advice

  • Dstl delivers a significant proportion of its work for other Defence customers, who task Dstl directly. This includes support to operations, advising and assisting Defence Equipment and Support (DE&S) on the procurement of equipment, supporting experimentation and equipment trials, as well as providing scientific and analytical support to a wide range of projects and activities across Defence. Dstl tasking is managed by a defined prioritisation process with decisions made at the appropriate level (this includes visibility of tasks with the SRO and decisions by them where appropriate). DST ensures that tasking to Dstl is coherent with the Ministry of Defence’s S&T Strategy and does not duplicate other research.

Dstl services provided to the Ministry of Defence are funded through a system of charging to recover its cash operating costs from the customer organisation (the CSA or other Defence organisations) to Dstl. In line with Defence policy, this funding covers Dstl’s direct costs and an allocation of Dstl’s operating overheads.

Capital investment and exceptional restructuring costs are allocated by the Ministry of Defence’s central budgetary planning process, in consultation with the Sponsor and Chief Scientific Adviser. In line with the strategic direction set by the Ministry of Defence, Dstl manages and delivers its internal capital expenditure (CDEL); funding for which is managed through the annual budget cycle.

External customers

3. Support for Other Government Departments

  • Dstl delivers a significant proportion of the S&T requirements of some Other Government Departments, who task Dstl directly. Dstl provides visibility to DST of all such taskings. DST ensures that the tasking of Dstl by Other Government Departments is coherent with the Ministry of Defence’s S&T Strategy and in support of wider Government objectives, with the exception of the commissioning of the Crime and Policing Servicing Programme which is overseen by the Home Office. The CSA has a responsibility to promote the capabilities of Dstl across government.

4. Support to non-government and overseas government organisations

  • Dstl also delivers outputs to non-government organisations, including in academia and the private sector, and overseas governments in accordance with Defence Science & Technology’s international engagement and research collaboration objectives. These organisations task Dstl directly, and Dstl gives DST visibility of all such taskings. DST ensures that these tasks are coherent with the Ministry of Defence’s overall S&T Strategy.

Dstl sets its charging rates to external customers in accordance with MPM. Non-Ministry of Defence interests in Dstl’s outputs are represented through non-Ministry of Defence customer attendance at working-level committees.

DST is responsible for the reporting to the Defence Board of all financial information (including spend, forecast, responses to in-year management requests and Annual Budgeting Cycle returns) for the CSA’s S&T Portfolio. Any required Reverse Taskings with the Ministry of Defence follow the process as described in the S&T Portfolio Framework. The commissioning processes that Dstl should follow in delivering the portfolio are set out in the DST Commissioning Plan.

Annex C: Functional Leadership

Functions are activities that need to be carried out in a coherent way across all the organisations in Defence, enabling Ministry of Defence business to be done smoothly and efficiently.

Functional Leadership is the mechanism for doing this. It is consistent with wider government best practice led by the Cabinet Office.

It provides direction to the whole Ministry of Defence to ensure that the department works effectively, efficiently, legally and compliantly with wider Government policy. It is about the coherence of activities. The Defence Operating Model currently identifies 16 Functions which are split into two types:

Core Government Functions

  • Analysis
  • Commercial
  • Communications
  • Digital
  • Finance
  • Legal
  • Project Delivery
  • Security

Ministry of Defence specific Functions

  • Health Safety and Environmental Protection
  • Healthcare and Medical Operational Capability
  • Infrastructure
  • Intelligence
  • Military Capability Management
  • People
  • Support
  • Transformation

Dstl complies with this direction unless specific exemptions have been agreed. Functional owners will proactively engage and consult with Enabling Organisations (including Dstl) to resolve any issues, or escalate using the process detailed in the Governance Principles. More information on how Functional Leadership is being implemented across Defence is available in the publication How Defence Works, available on the GOV.UK website.

Annex D: Policies and specific responsibilities applicable to Dstl

Except where Dstl has a specific exemption, it is subject to policies and rules set by the Ministry of Defence and wider government. The main elements are listed below. Dstl has the ability to put forward a business case for additional exemptions where there is a clear and compelling justification.

D-1: Information Governance

The Chief Executive is accountable for handling Dstl’s information holdings in accordance with Ministry of Defence’s information management policy and statutory obligations under relevant legislation. This includes the Freedom of Information, Data Protection and Public Records Acts and the Environmental Information Regulations.

D-2: Parliamentary and ministerial business

Responsibility for Parliamentary and Ministerial business is divided according to the roles and responsibilities set out in this Framework Document:

  • As Sponsor, COO, supported by DSOP, is the departmental lead for Parliamentary and Ministerial business relating to overall ownership and governance of Dstl, working with Functional Owners where policy areas overlap, and agreeing leadership of submissions with those Functional Owners.

  • CSA, supported by DST, is the departmental lead for Parliamentary and Ministerial business relating to science & technology policy and strategy, or which includes scientific advice, working closely with Dstl (and delegating as appropriate).

  • Dstl is responsible for any Parliamentary and Ministerial business relating to the operation of Dstl and Dstl delivery of S&T, working with Functional Owners where policy areas overlap, and agreeing leadership of submissions with those Owners. CSA and DST are informed of all parliamentary and ministerial business of this nature.

In line with the above allocation of lead, the DST Secretariat and Dstl Parliamentary Office ensure that Parliamentary and Ministerial business is dealt with in an enterprise manner.

When invited, the Chief Executive is required to appear before Parliamentary committees, notably the Public Accounts Committee, concerning their Accounting Officer responsibilities. The Chief Executive may be required by Ministers to give evidence to Parliamentary select committees.

D-3: Ministry of Defence corporate shared services

In delivering the day-to-day running of its business, Dstl uses the Ministry of Defence’s corporately-provided enabling services. Where Dstl has existing contracts to provide services outside of Defence’s shared service arrangements (for instance, facilities management, information systems, and insurance provision), these can continue. When existing contracts expire, Dstl must conduct an investment appraisal to consider whether extending pan-Ministry of Defence or wider Government arrangements to Dstl would offer better value for money for Defence. This will be conducted in line with the Ministry of Defence’s Investment Approvals Process.

New contracts are placed through Crown Commercial Services, unless it is confirmed that it cannot meet the requirement.

D-4: Vetting

Dstl is a fee-paying customer of vetting services from the United Kingdom Security Vetting (UKSV) organisation. Dstl conducts some vetting activity in agreement with UKSV and Defence Directorate of Security and Resilience.

D-5: Internal and External Audit, Assurance and Risk Management

Dstl maintains arrangements for internal audit that are provided by Defence Internal Audit (DIA), unless specifically agreed otherwise with the Ministry of Defence’s Defence, Audit, Risk and Assurance (DARA) organisation.

Dstl maintains an Audit and Risk Assurance Committee to advise both the Dstl Board and the Chief Executive in their capacity as the Dstl Accounting Officer. As per Ministry of Defence policy, the Audit and Risk Assurance Committee should be chaired by a NEM who is also a member of the Dstl Board and include at least two independent NEMs.

Dstl complies with the Ministry of Defence’s wider risk processes and assurance arrangements, as specified in the Chief Executive’s Budget Holder Letter of Delegation from the Chief Operating Officer.

Dstl will be subject to external audit carried out by the Comptroller and Auditor General (C&AG). The C&AG may carry out examinations into the economy, efficiency and effectiveness with which Dstl has used its resources. For the purposes of these examinations, the C&AG has statutory access to documents as provided for under section 8 of the National Audit Act 1983. Dstl makes best endeavours to secure access for the C&AG to any other documents required by the C&AG but which are held by other bodies.

D-6: Subsidiaries and joint ventures

Dstl must maintain effective and robust governance arrangements for its existing subsidiaries and joint ventures. Proposals for any new subsidiaries or joint ventures must be approved by the Sponsor and the Chief Scientific Adviser. The Chief Executive oversees the management of any Dstl subsidiaries and joint ventures, and holds the Chairs of these bodies to account for delivery of their respective objectives.

D-7: Intellectual Property (IP) Rights

As part of the Ministry of Defence, any IP generated by Dstl or its subsidiaries remains the property of the Secretary of State for Defence. IP is managed in accordance with extant Ministry of Defence policies.

D-8: Other Ministry of Defence policies

Dstl aligns with Ministry of Defence policies and processes, as set down in the relevant JSPs, across its business. This includes commercial policies and standards, and in accordance with commercial letters of delegation

D-9: Compliance with Government-wide corporate guidance and instructions

Dstl shall comply with the following general guidance documents and instructions:

Annex E: Summary of existing policy exemptions

Dstl is granted freedom of operation validating from certain Ministry of Defence policies, listed below. HR policies and controls are described in Annex F. The Ministry of Defence Chief Operating Officer, in consultation with Dstl (and with the advice of the Chief Scientific Adviser where required), can give in-year direction to Dstl to cease the operation of any delegation or policy exemption in response to the operational or financial needs of Head Office.

E-1: Continuation of existing shared service contracts

As described in D-3, Dstl currently has contracts to provide services outside of Ministry of Defence shared services arrangements. D-3 sets out how these are managed.

E-2: Safety and Environmental

Dstl operates highly specialised scientific processes that sometimes fall outside the scope of the relevant Joint Service Publications (JSPs). Dstl therefore develops the necessary policies and processes, agreed with the Defence Safety Authority.

E-3: Infrastructure

Dstl manages its own contracts with its facilities management and information systems providers; it may continue to operate these contracts until expiry. At expiry, Dstl is to conduct an investment appraisal validated by the Sponsor (with the advice of the Chief Scientific Adviser as required) to consider whether extending pan- Ministry of Defence or wider Government arrangements to Dstl would offer better value for money for Defence, before establishing new contracts. Dstl closely engages Ministry of Defence providers, including Defence Infrastructure Organisation (DIO) and Defence Business Services (DBS), to explore opportunities for drawing on their capabilities for managing the Dstl’s infrastructure, where possible.

E-4: Branding and communications

In consultation with the Ministry of Defence’s Brand team, Dstl developed a refreshed brand identity and corporate logo which works within the overarching Ministry of Defence brand structure. Maintaining a distinct identity enables Dstl to recruit and retain critical skills in a highly competitive skills market, work effectively with customers and stakeholders, and deliver against its Corporate Plan. Dstl also has delegated authority from the Ministry of Defence’s Directorate Defence Communications to develop and deliver an effective in-house communications capability whilst complying with Ministry of Defence Communications Functional Leadership. In addition, Dstl marketing and communications budgets are reviewed as part of Cabinet Office Professional Assurance Process, as necessary.

Annex F: Management of Dstl staff

The Dstl Chief Executive is responsible for recruiting, retaining, developing and motivating a civil service workforce that is able to meet Dstl’s objectives. To reflect its specialist role and the competitive skills environment in which it operates, Dstl operates a workforce model that is distinct from the core Ministry of Defence, though remains in accordance with civil service principles. Specific exemptions and controls of this model are listed below.

Where the operational or financial needs of Head Office require it, the Ministry of Defence COO, in consultation with Dstl (and with the advice of the CSA as required), can provide in-year direction to Dstl on workforce management; this includes the ability of Dstl to recruit.

F-1: Status of Staff and Conditions of Service

Dstl civilian staff are civil servants and subject to the provisions of the Civil Service Management Code. For day-to-day management of staff, Dstl operates as a discrete entity within the Ministry of Defence. Staff are auto-enrolled in the Principal Civil Service Pension Scheme unless individuals make alternative arrangements. The Chief Executive has authority for setting the terms and conditions of service for all Dstl staff in line with the Accounting Officer letter from the Ministry of Defence’s relevant Permanent Secretary; this includes travel and subsistence policy. In exercising this authority, Dstl is cognisant of Ministry of Defence policies on civil servants’ terms and conditions, and best practice across the wider civil service including the provisions of Managing Public Money.

Dstl manages its workforce through its own HR organisation, separate from the Ministry of Defence’s HR function. It works with the Chief of Defence People as necessary on matters of Departmental interest.

Dstl’s Senior Civil Servants (SCS) are subject to civil service-wide policies and are managed by the Ministry of Defence’s SCS Management Team.

The terms and conditions of the Dstl Chair and independent NEMs on the Dstl Board are determined by the Ministry of Defence and set out in their individual appointment contracts, in accordance with HM Treasury and the Cabinet Office’s Corporate governance in central government departments: Code of good practice. While independent NEMs are paid by Dstl, they are not civil servants or Dstl employees. The Ministry of Defence NEM is not paid by Dstl.

Service personnel will be posted to Dstl in agreement with the Service Secretaries.

Dstl staff play an important part in supporting Defence operations and can, therefore, be released to meet operational priorities in consultation with Dstl management.

F-2: Staff Recruitment and Retention

The Chief Executive ensures the balance of civilian, military and contract staff on permanent and fixed-term appointments achieves the most effective and efficient delivery of Dstl’s products and services. The Chief Executive has delegated authority to recruit to fill vacant posts directly, determining tenure and other conditions of appointment, in line with delegated authority. Dstl is able to undertake targeted recruitment campaigns in order to ensure it remains competitive in recruiting specialist S&T skills.

Off-payroll appointments comply with Ministry of Defence and wider Government policies, and processes, including rules on taxation.

Dstl supports the Ministry of Defence’s achievement of Government targets for apprenticeships, as set out in the Enterprise Act and Apprenticeships, Skills, Children and Learning Act.

F-3: Staff Development

Dstl offers a staff development curriculum that aligns with its needs as a specialist S&T delivery organisation. Procurement of training must follow Ministry of Defence policy as mandated by Cabinet Office Controls.

Dstl staff are eligible for civil service-wide development schemes.

Dstl staff can be loaned to the wider Ministry of Defence and other Government Departments, and vice versa, for staff development and business reasons.

F-4: Staff grading system

Dstl has a staff grading system independent to that of the core Ministry of Defence. The Chief Executive is responsible for ensuring this system is effective and complies with Ministry of Defence and Cabinet Office requirements. This includes management of the Dstl Fellowship Scheme, which recognises staff who are national or international experts in their field, allowing them to contribute and progress without the need to take on additional management responsibilities.

F-5: Pay and reward

As an Executive Agency, Dstl’s overall pay remit is subject to Ministry of Defence and HM Treasury approvals. However, within this remit, Dstl is able to develop options for rewarding and remunerating staff that can be formulated with the Ministry of Defence and HM Treasury.

F-6: Staff Conduct and Discipline

All Dstl staff comply with the Civil Service Code and its standards of integrity, honesty, objectivity and impartiality and to uphold the highest professional standards. The Chief Executive ensures that civilian disciplinary and poor performance cases are handled appropriately. They lead on matters relating to the conduct and discipline of all employees, which include dismissal, demotion, loss of seniority, loss of pay and reprimands. Any conduct or disciplinary issues involving military personnel working for Dstl are taken forward in consultation with the appropriate personnel staffs in the Front Line Commands.

F-7: Employee Relations and Trade Unions

The Chief Executive ensures that staff are fully consulted about any proposed changes to terms and conditions of service. Dstl works within the framework of collective agreements that allow open and constructive engagement with the Trade Unions recognised by Dstl in discussing proposals for changes affecting Dstl staff.

F-8: Diversity and Inclusion

The Chief Executive promotes best practice in the area of diversity and inclusion, ensuring at a minimum compliance with all applicable legislation and Ministry of Defence Diversity and Inclusion policy. They ensure that Dstl staff are provided with a working environment free from discrimination and harassment.

F-9: Welfare

The Chief Executive ensures the welfare of Dstl staff and contractors, and visitors to Dstl sites, ensuring compliance with statutory requirements and Ministry of Defence policy.

Annex G: Overview of the Defence, Technology and Innovation Board (DTIB)

The Defence Technology & Innovation Board (DTIB) is a formal board of the Ministry of Defence. DTIB enables the Vice Chief of the Defence Staff (as Chair); and the Chief Scientific Adviser and Deputy Chief of the Defence Staff (Military Capability) (as Defence Task owners), to gain assurance about the delivery of the Defence Tasks by Military Commands and Enabling Organisations (e.g. Dstl). DTIB’s primary role is to maximise the benefit that the Department obtains from technology and its S&T and Innovation investments and capabilities, ensuring the four Military Commands (the three single Services (Royal Navy, the Army and the Royal Air Force) and Strategic Command), S&T and Innovation collaboratively deliver tangible, substantial and innovative benefits for Defence. It does this by providing an overarching governance framework for strategic direction, policy and priorities (set by Head Office), plans and programmes for capability transformation (developed and owned by the Military Commands), and activity to drive the wider organisation and culture changes necessary to achieve these goals.

DTIB’s purview includes: all S&T capabilities and technical services (a) funded as part of the Chief Scientific Adviser’s S&T Portfolio or Front Line Commands’ Plans for Technology & Experimentation or (b) delivered by / through Dstl (including those commissioned by OGDs and Agencies); all structured innovation initiatives; and the exploitation of all these activities by DE&S, DIO and the Military Commands.

The role of the DTIB is to:

  • direct and oversee the setting of S&T and Innovation strategies required to meet Defence Challenges and drive the rapid adoption of new technologies and innovations across Defence;
  • hold to account and oversee the Chief Scientific Adviser’s S&T Portfolio and Front Line Command Plans for Technology and Experimentation, ensuring that the Commands and DE&S provide effective pull-through into Development / Deployment, and ensuring wider issues (e.g. procurement, people, infrastructure and information) are considered;
  • ensure the Ministry of Defence has access to the right S&T capability and capacity, both to meet current requirements and for the future;
  • support Change & Efficiency through innovation and the exploitation of S&T;
  • identify, review and assign ownership of risks relating to S&T and Innovation, ensuring these are linked to Defence Board risks where appropriate.

The Dstl Chief Executive attends the DTIB to represent the Dstl delivery of the S&T Portfolio and the provision of S&T capabilities by Dstl.

Operating within the strategic and capability requirements set out by the Chief Scientific Adviser, Dstl’s delivery of the S&T programme has a critical dependency on Dstl having the right level of resources available for capital investment, the right delegations, and the right exemptions from central policy. The Chief Operating Officer is a member of the DTIB, ensuring a joined-up Departmental view on the impact of Dstl’s corporate governance and expenditure controls on Defence’s S&T programme. This includes understanding where exemptions from central policies can or cannot be granted, and ensuring the DTIB is consulted about Dstl’s capital funding bids to the Department and the capital funding decision-making process in general.  

Annex H: Dstl Corporate Plan and Business Plan

The Corporate Plan and Business Plan are the primary documents for managing Dstl’s corporate performance. They set out the strategic direction of Dstl for a rolling period of five years, and in more detail for the immediate financial year, respectively. These Plans are prepared by the Dstl Chief Executive in consultation with stakeholders. They are reviewed and endorsed by the Dstl Board, endorsed by the Sponsor, and approved by the Responsible Minister. The Plans include:

  • The strategy for delivering Dstl’s purpose, role and vision;
  • The main activities and investments that will deliver this strategy;
  • Targets and Key Performance Indicators (KPIs);
  • How success is measured, including delivery against objectives and milestones;
  • The wider context and key underpinning assumptions;
  • An assessment of key corporate risks;
  • A financial analysis and projections over the five-year period.

When approved by the Responsible Minister, it forms the authoritative basis against which all business decisions within Dstl are taken.

Annex I: Annual Report and Accounts (ARAc)

The Dstl Chief Executive prepares its ARAc in accordance with relevant guidance from HM Treasury and the National Audit Office (NAO). It provides details of Dstl’s business and financial performance over the previous financial year and includes:

  • Statements from the Chair and Chief Executive;
  • A governance statement setting out disclosures related to governance, risk and control;
  • A review of performance against objectives and targets;
  • A description of significant successes and challenges;
  • A sustainability report;
  • The biographies and remuneration details of key personnel;
  • A detailed financial statement that meets the accounting and disclosure requirements set by HM Treasury in the latest published Financial Reporting Manual (FReM).

The ARAc is endorsed by the Dstl Board and signed off by the Dstl Chief Executive as the Dstl Accounting Officer before being laid before Parliament in accordance with Departmental and HM Treasury guidelines.

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