AOF
Acquisition Operating Framework
The high level principles and information that guide how the UK MOD Defence Acquisition Community works
version 3.1.1 – September 2010
The high level principles and information that guide how the UK MOD Defence Acquisition Community works
version 3.1.1 – September 2010
Strategic Guide to Acquisition
Acquisition OrganisationsAcquisition Business
Further AOF Information |
Content
The Approvals and Scrutiny ProcessThe Approvals and Scrutiny process is mandated for all investment decisions. The Approvals and Scrutiny process can be summarised as the following stages:
The early stages of a project lifecycle contain two major decision points - Initial Gate and Main Gate. Sponsors and project teams are required to develop a Business Case at both of these stages, which justifies the project proceeding to the next stage. TLBs may have their own parallel internal processes that must also be followed. For further information on approvals and through life investment assurance within DE&S, teams should seek advice from the DE&S Scrutiny and Approvals Team Initial GateInitial Gate is the first approval point which occurs before any assessment work is undertaken and is considered to be a relatively low hurdle in the process. Industry must not be engaged formally prior to Initial Gate approval. Main GateMain Gate occurs after the assessment work has been undertaken and is the major decision point at which the solution and ‘not to exceed figures’ are approved. No manufacture or service contracts can be signed prior to approval. Approval CategoriesProjects are divided into four categories A, B, C and D. Categorisation is based primarily on value, although other factors (novel and contentious issues for example), can lead to a project being moved into a higher category. Category A and BThe approval process for Cat A and B projects requires the project teams to liaise with members of the scrutiny community who each represent the interests of a member of the Investment Approvals Board (IAB). The scrutineers are responsible for reviewing the evidence that underpins the Business Case to ensure that a mature proposal is presented to the IAB for consideration. The Business Case is developed separately with the IAB Secretariat. A Scrutiny Team Leader report is submitted to the IAB or other approving authority alongside the Business Case. If Ministerial or Treasury approval is required, the IAB Secretariat drafts the necessary submission to the Minister and letter to the Chief Secretary to the Treasury (CST). Following receipt of the necessary approval response, the IAB Secretariat produces an approval/non approval note that is passed back to the project team and sponsor. Category C and D Equipment ProjectsFrom 1 April 2007 the approval of most Cat C equipment projects is delegated to the TLBs responsible for them. The vast majority of the newly delegated projects rest within the DE&S organisation. Projects that will continue to be approved centrally include Urgent Operational Requirements, nuclear, PFI projects and those funded by the Defence Modernisation Fund. Sponsors and project Teams should note central approving authorities retain the right to elevate projects into a higher category should they see the need to do so. Changes to the Approvals ProcessA number of changes have been implemented progressively and many of these are reflected in the latest version of Smart Approvals guidance (January 2009). The changes include:
The evidence will be collected in an evidence portfolio and reviewed by the scrutineers before any investment decision points. The IAB will then receive a scrutiny report from a single lead scrutineer with a simplified business case to inform the investment decision. Other changes are:
Relevant LegislationNo legislation identified as being relevant to the Approvals and Scrutiny process.
Contacts
Approvals and ScrutinyOwner
Point of Contact
Change History
Change HistoryThe AOF was updated to Version 3.0.0 on 1st April 2010. Individual document Change History pages will detail any changes other than minor editorial amendments.
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