The British Ministry of Defence (MoD) abandoned a radical plan for a commercial company to manage the UK’s defense procurement. Defence Secretary Philip Hammond admitted that only one bid had been received to run the Defence Equipment and Support (DE&S) organization as a "GoCo," government-owned, contractor operated. Instead, Hammond said the MoD will proceed with an alternative plan for reform “through a significant injection of private sector skills”—the so-called ‘DE&S+’ option.
The single bid to run the DE&S came from American engineering company Bechtel, in partnership with British companies PA Consulting and accountants PriceWaterhouseCooper. Another bid was expected from CH2M Hill, also an American company, with British companies Atkins and Serco as minority shareholders, but it did not materialize. Serco is already a significant provider of outsourced services to the MoD and other government departments, but its reputation has been damaged by a scandal over false claim.
