Ministry of Defence and MOD Family spend

Background
On 31 May 2010 the Prime Minister wrote to all Government Departments with plans to open up government data, with a specific commitment to publish government expenditure over £25,000.

Content
The information is to include payments for goods and services, grants to 3rd party providers, expenses, rent and policy related lending, credit notes over £25,000 and transactions with other government departments or public bodies. The content of the data will show if the expenditure is made by the MOD itself or one of its “family” organisations such as a trading partner or Non Departmental Public Body, the payment date, the general nature of the expenditure, the part of the organisation making the payment, the name of the supplier, the unique transaction number and the amount in sterling. The HM Treasury guidance document and example publication template provide further details on the requirement and content. (See external links)

MOD is committed to improving the quality of the transparency data and over the forthcoming months will be implementing a number of measures to facilitate this. The Defence Framework document (see link in Related Page links) describes and explains the overall purpose of Defence and should assist Users of the data in understanding the context of the transactions.

The usual Freedom Of Information exemptions will apply, and MOD personnel will be making judgements on which expenditure to withhold from publication. Please refer to the exemption table which provides examples of the types of transaction that may be redacted from publication. Additionally the Efficiency and Reform Group within the Cabinet Office have agreed a wider exemption, initially for a 12 month period, for MOD contracts linked to EC guidance for “War like stores”.The agreed ERG concessions are detailed below:

ERG agreed concessions

1. A blanket exemption from publication for all; tendering, contract, and financial information associated with:

“War like stores” – all information that falls within the scope of Council Decision 255/58 - EC Council List Of Items Defining The Scope Of Article 346 of the Treaty for the Functioning of the European Union (EU). This would exempt all information for:

Portable and automatic firearms
Artillery and smoke, gas and flame-throwing weapons
Ammunition for the weapons at 1 and 2 above
Bombs, torpedoes, rockets and guided missiles
Military fire control equipment
Tanks and specialist fighting vehicles
Toxic or radioactive agents
Powders, explosives and liquid or solid propellants
Warships and their specialist equipment
Aircraft and equipment for military use
Military electronic equipment

2. An exemption to redact from contracts all information associated with:

“Military sensitive technical information” – all such information that might expose UK military and civilian personnel, or those employed by the UK government, or our coalition partners and allies to potential personal risk of serious injury or loss of life. In reality this would mean that for most of our contracts, the schedule including the Technical Specification would be redacted.

Government Procurement Card
In accordance with HM Treasury guidance, the Ministry of Defence routinely produces all Departmental expenditure data on a monthly basis. Two sets of statistics are published:

Departmental expenditure over £25,000
Departmental expenditure over £500 on Government Procurement Cards (GPC)

The GPC is a purchasing card is used by military and civilian personnel stationed throughout the UK and the World. It is a quick, flexible and efficient payment mechanism for our personnel to purchase low value essential products and services while on duty and military operations. The Department undertakes approximately 1.2 million GPC transactions per annum.This saves the equivalent of 1,000 extra staff that would be required to process the paper invoices if the GPC was not used. The card helps to ensure that the Defence budget is used efficiently in support of our service personnel worldwide, and offers better value for money for the taxpayer.

The issue of a GPC is strictly limited, and those given a card are given clear rules around how the card can and cannot be used. All expenditure is subject to rigorous controls and policed through regular checks and audits to reduce the risk/occurrence of inappropriate expenditure.

The GPC also ensures that our suppliers are paid as quickly as possible in line with Government targets for prompt payment.

The descriptions used for transactions reflect how the provider of the goods and services is classified under the VISA categorisation, and therefore often don’t reflect precisely the nature of the goods or services purchased. For the purpose of clarity, explanations of some of the Merchant Categories codes are provided below:

Merchant Category Group/Code narrative	Examples of Expenditure
Bars, restaurants and nightclubs	Small hotels provided by our Hotel provider are classed under this heading Meals/subsistence while on detached duty, military operations and training exercises
Fireplace	Repairs to ovens in kitchens
Gifts/cards/novelty shops Video amusement game supply	Trainee visits to the Royal Armouries as part of their training to see the history of weaponry and guns. Video Games, puzzles etc for rest and recuperation for personnel serving in Afghanistan
Hobby, Toys and games	For schools educating Service children overseas
Florists	Wreaths for Military personnel killed while in Service Upkeep of the Defence estate, particularly military establishments
Music shops and Bands/Orchestras	Musical instruments purchased for the various military bands and the Royal School of Music
Dry cleaning	The procurement, rental and maintenance of washing machines The provision of laundry facilities for Military personnel
Jewellery	Maintenance of clocking-in machines at MOD establishments New location signs The provision of dog tags for military personnel Warrant card holders for the MOD Police Kilt pins for school uniforms
Gym equipment	The purchase of physical training equipment for military gyms and schools
Arts and Craft Shops	Insignia for military band instruments Mock up models for military visits to schools Military recruitment banners
Cinema trips	Hire of venues by the Army Presentation team Leisure activity as part of the training for new junior soldiers
Tourist attractions and exhibits	Acquaint visits for potential recruits to the Royal Navy Costs related to the annual Navy Day Adventure training courses including hire of facilities and instruction
Cosmetics	Demineralised water for radar systems Air fresheners for waiting areas and toilets in Military Careers Offices
Leisure Activities/Recreation services	Payment to local radio companies for "advertising space" by the Military Recruiting Teams Payment for a Mountain Rescue Winter Climbing Training Courses for the Search and Rescue Teams Coach hire for pre deployment training Diving courses for Army divers
Theatrical Producers	Ferry bookings Venues for MOD Recruiting Teams and Presentation Teams Army Officer training as part of cultural awareness
Bowling Alleys	Leisure activities/team building for junior soldiers as part of their Army training programme
Health and Beauty Spas	Some of the hotels booked by our Hotel provider for staff on detached duty fall into this category
Shoe Stores	Specialist boots on health grounds for Military staff
Pet stores/Food & Supply	Food and Supplies for the Defence Animal Centre and MOD Police and guard dogs
Books and Periodicals	Books and publications for our libraries and schools that are not available on contract e.g. second hand books,
Beauty and Barber shops	Specialist Medical and trauma training
Speciality Cleaning/Polishing	Industrial leak and spill management, industrial safety and plant maintenance products
Tailor/Seamstress/Alters	Ceremonial clothing e.g. Trooping the Colour, Queens Birthday parade Mounting of military medals on uniforms
Children/Infants wear stores	Some retailers in this category also supply adult clothing/products Specialist clothing requiring motifs e.g. t-shirts for the Red Arrows Equipment for battle field tests Items for our schools
Men’s/Women’s Clothing Stores	Specialist Outdoor Clothing e.g. adventure training clothing Purchase of items of uniform from specialist Suppliers
Advertising Services	Payment to local radio companies and Newspapers for "advertising space" by the Military Recruiting Teams Sign making Services Exhibition displays
Commercial Photo/Art/Graph	Safety Sign making Services
Management/Consult/Public Relations Services	Specialist training providers Payments to Professional Bodies
Civic/Social/Fraternal Associations	Payments to Professional Bodies Payments to Local Councils
Statutory Bodies - Fines	Payments to the Police for advanced driving courses
Cable/Pay TV Services	Sky installations for MOD establishments and ships
Boat Dealers	Repairs to ships and boats Purchase of specialist paint for ships
Dentists/Orthodontists	Dental equipment for military staff dental check ups
General Retail – Women’s Access/Speciality	Waterproof Clothing and products for Adventure training Waterproof Clothing for Search and rescue teams

MoD has a zero tolerance policy on fraud, theft and irregularity, and disciplinary action is taken if any wrongdoing is found.

Queries
Suppliers should direct any specific questions relating to this publication of expenditure to their MOD Contract Manager or MOD Demander.

Further queries on the data should be submitted through the FOI route.

(See related link)

Exemptions PDF [20.4 KB]

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