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Defence Electronics and Components Agency

Volume 721: debated on Wednesday 2 November 2022

I am today confirming the Department’s intention to merge two of Ministry of Defence’s (MOD) arm’s length bodies (ALBs), which will see the Defence Electronics and Components Agency (DECA) merge into Defence Equipment and Support (DE&S).

This follows the UK Government Investments (UKGI) tailored review of DECA, 2021. The review confirmed the continuing value and need for DECA to be retained within MOD as a strategic second source, in-house provider of maintenance, repair, overhaul and upgrade (MRO&U) services. This decision reflects the need for the MOD to widen DECA delivery across defence to achieve even greater savings.

Consistent with the Government’s public body reform agenda, we have investigated a number of potential governance and operating models and concluded that merging DECA into DE&S provides best overall value to the taxpayer. This will be achieved through improved governance structures and an operating model better aligned with Government policy and defence planning outputs. This will put DECA on a stable, sustainable footing and achieves greater savings through increased utilisation of DECA across defence.

The merger option has been developed with a wide range of defence stakeholders, with other Government Departments, and with the two ALBs themselves. A key aspect has been to protect those elements of DECA’s current operating model that have proven valuable in the delivery of defence outputs.

The merger will also sustain and grow highly skilled jobs at DECA’s main site at MOD Sealand, north Wales, its other existing locations across the UK, and provide further opportunities to develop a DE&S hub in support of wider defence work.

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