The Acquisition Handbook

ApprovalsApprovalsStreamlined Approvals embody increased delegations and give more responsibility over thecontent and staffing of approval documents to the DEC and IPT Leader. The staffing processitself has been simplified. There is also a renewed emphasis on comparing the cost ofprocurement and support options using whole-life costs and making decisions on that basis.Independent scrutiny and review of approvals submissions are more sharply focused, but thescrutineers are more closely involved with the IPT, discussing and resolving any problems withwhat is proposed at an early stage.The system replaces the old three or four approval points by no more than two: the Initial Gateand the Main Gate. Following the Concept Stage, on which up to £10M or 2% of the procurementcost (whichever is the lower) can be spent without an Equipment Approval Committee (EAC)approval, an Initial Gate approval is required before funds can be released for the AssessmentStage. The Initial Gate is intended to be a relatively low hurdle, encouraging early and fullexploration of a wide range of options and trade-offs (including collaborative possibilities) formeeting a particular capability, and with emphasis on investment in early risk reduction work. Thefocus of the Approving Authority at Initial Gate will be on confirming that there is a wellconstructedplan for the Assessment Stage that gives reasonable confidence that there areflexible solutions within the performance, cost and time envelope the customer has proposed.Approval at Initial Gate implies no commitment by the ECC or the Approving Authority to a projectproceeding to or beyond Main Gate.Following the Assessment Stage, by the end of which typically up to 15% of the initialprocurement cost of the system might be spent, a Main Gate approval is required before anymoney can be spent in the Demonstration Stage. For Main Gate, a single technological andprocurement option (but not necessarily a single supplier) should be recommended. Risk shouldhave been reduced to the extent that the DEC and IPT Leader can, with a high degree ofconfidence, undertake to deliver the project to narrowly defined performance, cost (procurement)and time parameters. Potential industrial or collaborative issues must be addressed not later thanMain Gate, in consultation with the Department of Trade and Industry (DTI) and otherDepartments (particularly the Treasury) as necessary. The parameters agreed at Main Gate willbe those used for external reporting and performance measurement with the Treasury and theNational Audit Office (NAO).15