Strategic Enterprise achieves Full Operating Capability

Strategic Enterprise, the innovative technical services delivery model conceived by QinetiQ and the UK Ministry of Defence (MOD), has been awarded Full Operating Capability after hitting every performance target since its inception.

A panel comprising senior representatives from the MOD’s Defence Equipment and Support (DE&S) procurement agency confirmed the status after Strategic Enterprise passed the last in a series of milestones assigned as markers of the initiative’s success. These objectives included implementing streamlined procedures, bringing new aircraft work programmes under contract, and achieving demonstrable cost savings. 

Since Strategic Enterprise launched in November 2015, innovations introduced under the programme have produced more than a 30% reduction in the cost of delivering engineering services for aircraft such as Typhoon, Tornado, A400M, Merlin and Airseeker. The savings have been achieved through radical changes to contracting processes, moving away from input-based contracts, in which individual tasks are agreed for each new project, to an output-based model, where the customer selects the outcome of a project from a standardised list. These standardised outputs include upgrade and integration of new capabilities, safety compliance, and the release to service of new aircraft or equipment. 

Around £60m has been saved by getting the scope right at the start of each contract, making sure it does not exceed that which is necessary to deliver the desired result. A further £25m saving has been made possible through the award of longer-term contracts, enabling longer-term planning to drive down project management costs and optimise the allocation of resources. QinetiQ is also focused on delivering through-life savings through further transformation initiatives in service delivery. 

John Anderson, Managing Director Air & Space, QinetiQ, said: “This makes a statement that Strategic Enterprise is not just a series of cost-cutting tactics, but a game-changing strategy for achieving more with less. The initiative began with the recognition that we needed to work smarter to meet the changing needs of our customers against a background of emerging threats and challenging budgets. With the programme now at full maturity, it’s great to reflect on the successes so far and be able to show that we are achieving what we set out to do. Strategic Enterprise is continually evolving and we look forward to celebrating more significant milestones over the coming months and years.”