Service Level Agreement -...

UKTI/MOD SLA – VERSION 1.0 – 26 March 2008

Service Level Agreement

between

UK Trade & Investment (UKTI)

and

the Ministry of Defence (MOD)

regarding support for defence exports

Introduction

1. Following the Prime Minister’s decision to transfer defence trade promotion from MOD, UKTI will take the lead in providing the Government’s support for defence exports; helping UK defence companies to grow internationally; and encouraging inward investment to the UK, notably in the defence and security sector.

2. This Service Level Agreement (SLA), with its annexes, sets out the principles and framework for the support which MOD and UKTI will provide to each other to support defence exports. It also defines the MOD’s and UKTI’s responsibilities in connection with providing and paying for these services; executive governance arrangements for the new organisation; and how differences will be resolved and variations to the SLA agreed.

Guiding Principles

3. The MOD will have a continuing interest in much of the activity of UKTI Defence & Security Organisation (UKTI DSO) and will benefit from successful defence export campaigns that contribute to MOD objectives. UKTI will work for successful outcomes in these campaigns, with MOD in turn providing appropriate support.

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4. The MOD will continue to identify support to defence exports in the formal list of Military Tasks, as a component of wider British interests in the Defence Strategic Guidance. The cases where MOD will provide support, and the level of support which MOD will provide, are subject to the arrangements set out in this SLA.

5. Strong co-operative links between UKTI and MOD will be maintained in order to ensure UKTI is able to draw upon MOD expertise and equipment, including the training, validation and know-how of the UK’s Armed Forces in support of defence export campaigns.

6. In order to facilitate these links and to maintain credibility with overseas customers, UKTI DSO will be staffed by a mix of civil servants and military staff. The intention will be to ensure continued refreshment of key civilian and military posts through the loan of personnel from MOD and the UK Armed Forces with up-to-date defence knowledge and experience.

7. Arrangements for support to defence exports in the US are the subject of a separate SLA.

Support from MOD to UKTI

8. Within these principles, MOD will provide military and civilian support and expertise together with military resources in support of defence exports, providing that:

a. the export campaign contributes to one or more wider MOD objectives, including:

(i) sustaining essential defence industrial skills and capabilities throughout the supply chain, as set out in the Defence Industrial and Technology Strategies;

(ii) enhancing international security co-operation;

(iii) reducing the cost to the taxpayer of MOD acquisition programmes;

and

b. MOD support forms a necessary component of the defence export campaign;

and

c. sufficient MOD assets or resources are available from existing capacity and their use will not adversely impact on military operations, either directly or through an adverse impact on exercises or other key training, or on other security co-operation activities.

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9. On occasion, UKTI may seek to support a defence export campaign that does not contribute to MOD objectives or where there is no MOD benefit. In these cases MOD support may be provided, subject to the conditions at paragraphs 8b and & 8c being met.

Process for Agreeing the Provision of Services

10. To help establish a more robust linkage between the support that MOD provides to export campaigns and the benefit to defence objectives there will be an Annual Business Planning Review. In the third quarter of each financial year, UKTI will provide MOD with its draft business plan for the following year, setting out the export campaigns where MOD support is required and, where possible, an estimate of the extent of MOD resource likely to be needed. At the same time, UKTI will also provide MOD with an account of the MOD support and resources provided over the preceding year. Together MOD and UKTI will scrutinise the forward plan and, in the fourth quarter, will agree the broad parameters of the MOD support to be provided, subject to availability of the necessary resources, over the following year. In doing so both parties will review the call on MOD support and resources provided in the previous year, and how effective these resources have been in delivering the desired outcomes.

11. In the fourth quarter, MOD will issue internal guidance, promulgating the arrangements by which MOD support for defence exports will be provided over the following year.

12. Arrangements for dealing with changing priorities or contingencies not foreseen in the Annual Business Planning Review will be a matter for negotiation between MOD and UKTI on a case-by-case basis against the principles set out in paragraphs 8 and 9.

Finance Arrangements

13. MOD support will be subject to the charging arrangements as set out in Annex A, which also sets out finance mechanisms and administration. The general principle of the charging arrangements under this Agreement is that charges for the supply of goods and services will be made in a manner consistent with Treasury guidance.

Effective MOD/UKTI Communications

14. It will be important for the effective discharge of defence export functions for UKTI staff to have access to certain key MOD committees, processes and information or documents. UKTI top management will be invited to attend or be represented at relevant MOD committees, including those listed at Annex B.

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15. Other, less formal contacts will also be important in ensuring effective support is provided to defence exports. These will include:

a. frequent opportunities for meetings, as appropriate to the requirements of both sides, between the Head of UKTI DSO (or alternate) and the senior official leadership of the MOD, and involvement in defence related functions (seminars, receptions etc) which may be relevant to the work of UKTI DSO;

b. direct links between UKTI DSO and the offices of senior officials and Armed Forces personnel on defence export issues. UKTI will be invited to contribute to briefings being prepared for MOD Ministers and senior staff for inward and outward visits;

c. regular meetings on regional policy and equipment issues between UKTI DSO staff and MOD Policy and Defence Relations Directorates. UKTI representatives will be invited, as appropriate, to brief incoming Defence Attachés and attend Defence Attaché conferences;

d. close dialogue on MOD equipment policy and programme issues, including business cases, between UKTI DSO staff and the MOD acquisition community (including DCD, DCDS(EC) and DE&S staff);

e. ongoing dialogue on UKTI’s support for and engagement with defence-related SMEs in the context of MOD’s Supply Network Policy and Implementation Programme;

f. exchange of information between UKTI and DASA on defence trade statistics and economic issues relating to the global defence export market;

g. open and continuing dialogue between UKTI and the MOD’s Saudi and Kuwait Project Offices on defence export activities in these countries being undertaken or planned by either organisation. Support and advice from MODSAP commercial staff on UKTI DSO contracts and other commercial issues;

h. early involvement of UKTI staff in any review of MOD security co-operation or defence acquisition policy or programmes which might have a bearing on support for defence exports;

i. sharing of information about and attending exhibitions, trade fairs and conferences where a presence from MOD and/or UKTI might support mutual objectives; and

j. regular interchanges and technical assistance between UKTI DSO and other parts of MOD as required on matters of mutual interest.

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Types of Support MOD will Provide

16. The services that MOD will provide to UKTI will include ongoing support to the operation of the UKTI DSO and particular support to defence export activity. The types of support which MOD will provide are set out in paragraphs 17—31 below. The charging arrangements are set out in Annex A.

Support Provided by MOD to UKTI

17. Loan of Military Personnel. MOD’s intention is to provide suitably qualified military personnel on loan to BERR to provide staffing to UKTI DSO to fill the posts listed at Annex C. Any changes to the military establishment will be agreed in writing between MOD and UKTI.

18. Loan of MOD Civil Servants. MOD’s intention is to provide suitably qualified MOD civil servants, as agreed with UKTI, to serve on loan to BERR to provide staffing to UKTI DSO as listed at Annex C. UK-based civilian staff in overseas posts will be provided on loan to the FCO. The relevant posts are also listed at Annex C.

19. HR arrangements. The relevant arrangements relating to UKTI DSO's staffing are set out at Annex D.

20. Office Accommodation. MOD will provide office accommodation at St George’s Court for use by UKTI DSO until otherwise agreed by both parties. For the duration of UKTI DSO's tenure in St George's Court, MOD will continue to provide support services to allow the group to function effectively until both parties agree that UKTI can provide an appropriate alternative.

21. Military lodger units. MOD will provide accommodation and ancillary services to the UKTI DSO Export Support Team, based at the Royal School of Artillery, Larkhill and Stanley Barracks, Bovington Camp. This requirement is governed by separate agreements.

22. Access and use of IT Applications. MOD will provide UKTI DSO staff with access to and use of MOD IT applications. The arrangements for this are set out at Annex E.

MOD Support to Defence Export Activities

23. Day-to-day expert support. This will include specialist advice from military and civilian experts in MOD and from Defence Attachés. Such advice will include ad-hoc requests for small, short-term support activity from various parts of MOD, for example by telephone, e-mail, letter or written report. It will also include, where appropriate, support from Defence Ministers including letters of support and representing the Government at high-level discussions and meetings with overseas customers. The

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provision of this support will depend on decisions by the relevant MOD managers, acting in line with the provisions of this SLA.

24. Training and Support Services. In accordance with the provisions agreed by the Annual Business Planning Review or as agreed on an ad hoc basis, MOD will provide overseas Governments with access (where practicable) to UK armed services training. Where agreed, MOD will provide military staff on loan to an overseas customer to support introduction into service.

25. Dedicated expert support. In accordance with the provisions agreed by the Annual Business Planning Review or as agreed on an ad hoc basis, MOD’s intention will be to provide civilian and/or military staff with particular defence expertise or background, to enhance credibility in dealings with overseas customers. This support may include MOD staff undertaking a specific piece of work, attending and providing advice at meetings or delivering presentations to overseas customers in the UK or overseas, and assisting with inward visits and missions. The provision of this support will depend on decisions by the relevant MOD managers, acting in line with the provisions of this SLA.

26. In cases where the level of support is known to be high, and continuing, there may need to be a separate SLA governing the level of support that can be made available.

27. Dedicated expert support ( Cost Assurance Group) . In accordance with the provisions agreed by the Annual Business Planning Review or as agreed on an ad hoc basis, the MOD DE&S Cost Assurance Group will provide the necessary support and advice.

28. Equipment demonstration with military support. In accordance with the provisions agreed by the Annual Business Planning Review or as agreed on an ad hoc basis, MOD’s intention will be to provide overseas customers with access to equipment in service with the UK Armed Forces. This will include making military personnel and equipment available for exhibitions, equipment demonstrations, defence industry days or private company visits for an agreed number of days, for example HM Ships while they are visiting foreign ports, or providing demonstrations of military aircraft. Security clearances for visitors to MOD establishments and defence contractors will be obtained through existing MOD channels.

29. Exhibition support. In accordance with the provisions agreed by the Annual Business Planning Review or as agreed on an ad hoc basis, MOD will provide additional staff to help with peak loading at the time of the DSEi and Farnborough Air Shows.

30. Access to Communications Flying Assets. MOD will permit continuing access to MOD Communications Fleet assets for VIP inward visits in support of export campaigns under current terms, depending on aircraft availability, and in accordance with the relevant MOD instruction until 1 April 2009. As announced by the Department for Transport on 26 March 2008 new arrangements for Royal and

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Ministerial air travel will come into effect and the MOD will no longer be responsible for this task. From 1 April 2009, for the type of flights described above, Departments will need to plan for alternative means of travel.

31. Companies need to have an MOD Form 680 approval in place in order for MOD and UKTI DSO staff to support an export campaign. Where information that is classified or controlled for export is held by a company, that company must have in place the relevant approvals for its release overseas, including where appropriate an Export Licence. Any classified information released by MOD and UKTI DSO staff to overseas entities will be subject to normal security procedures.

Support from UKTI to MOD

32. The types of support which UKTI will provide are set out in paragraphs 33—41 below. The charging arrangements are set out in Annex A.

33. Disposal of Military Equipment. UKTI will assist MOD’s Disposal Services Agency to identify markets and support the sale of surplus UK military equipment. This activity is governed by a separate agreement.

34. Industrial Participation. UKTI will negotiate and monitor Industrial Participation (IP) agreements associated with UK acquisition programmes on which there are overseas bidders, in line with MOD’s Industrial Participation policy. To facilitate this, MOD will provide UKTI with the appropriate information, including: details of offshore involvement in MOD programmes; access to DE&S IRG and IPT staff to discuss IP issues; and copies of draft Business Cases and Review Notes. Details are set out in Annex F.

35. International Agreements. MOD and UKTI may agree in the future, where there is an equipment export element, that UKTI will lead on certain international agreements.

36. Memoranda of Understanding (MoUs). UKTI will manage defence equipment co-operation MoUs with the exception of the US Defence Equipment MoU, and any MoUs associated with the Saudi and Kuwait projects to which the MOD is already committed, which will be managed by MOD.

37. Defence Industrial Strategy. UKTI will contribute to the development of the export dimension of the Defence Industrial Strategy (Phase 2) and subsequent defence acquisition reviews and documents. Details of all such initiatives and copies of draft documents will be provided to UKTI at the earliest opportunity.

38. Wider Factors Assessments. UKTI will provide ‘wider factors’ assessments, export market data, defence trade statistics, and analysis to MOD’s DE&S, Equipment Capability Customer, Defence Intelligence Staff and DASA. To facilitate this, MOD will provide UKTI with: copies of the IAB forward business programme, or equivalent; access to DE&S IPT staff to discuss export potential assessments; and

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copies of draft Business Cases and Review Notes, so that export considerations can be addressed.

39. Hosting Visits. Where practicable, UKTI will host high-level inward visits of overseas Customer Governments where defence export issues are high on the agenda.

40. Briefing for MOD Ministers. UKTI will provide input to MOD Ministers’ briefings when conducting international defence business to ensure defence export issues are properly covered.

41. Secretariat Services. UKTI will, where better placed to do so, deal with correspondence addressed to MOD Ministers and senior officials on defence exports. This will be agreed case-by-case.

Governance Arrangements

42. Ministerial responsibility for UKTI DSO rests with the Minister for Trade and Investment. The Secretary of State for Business, Enterprise and Regulatory Reform and the Foreign Secretary, as the two responsible Cabinet Ministers, will also be involved as appropriate. There is a continuing role for MOD Ministers, notably the Minister for Defence Equipment and Support, who has responsibility for the Defence Industrial Strategy and has an interest in the health of the UK defence sector and the role that exports play in sustaining that sector; and the Minister for the Armed Forces, who has in interest in defence relations with other countries. This will deliver a relationship that foreign governments and customers will see as continuing to provide a wider defence relationship with the UK.

43. In addition to the normal UKTI governance arrangements and the Annual Business Planning Review set out in paragraph 9 (above):

a. there will be periodic meetings, as required, between any of the MOD, FCO and BERR Permanent Under-Secretaries of State and the Chief Executive of UKTI;

b. UKTI will make available to MOD a seat on the UKTI Audit Committee; and

c. further consideration will be given to appropriate representation on other relevant UKTI committees.

Duration

44. This SLA comes into effect on 1 April 2008 and will continue until it is terminated by mutual agreement.

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Review and Revisions

45. The Responsible Officers or their designated deputies will regularly review the working and effectiveness of this SLA. This SLA will be reviewed by senior MOD, UKTI, BERR and FCO representatives six months after it initially comes into effect. Either UKTI or MOD can propose revisions at any time to meet changing circumstances. Each agreed change will be clearly identified as such; numbered in sequence; and signed by representatives of each party.

Parties and Witnesses to this Agreement

This agreement is between the Ministry of Defence and UK Trade & Investment.

The MOD’s representative is: Sir Ian Andrews, Second Permanent Under Secretary.

Signature: [Signed: Ian Andrews]

Date: 26 March 2008

The UKTI’s representative is: Andrew Cahn, Chief Executive.

Signature: [Signed: Andrew Cahn]

Date: 26 March 2008

List of Annexes

Annex A – Charging and Financial ArrangementsAnnex B – UKTI Representation on MOD Boards and CommitteesAnnex C – Posts filled by MOD staff on loanAnnex D – Human Resources ArrangementsAnnex E – Access to ITAnnex F – Industrial Participation Arrangements

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ANNEX A

CHARGING AND FINANCIAL ARRANGMENTS

Charging Arrangements

A1. The recharging regime set out in the table below applies in the context of paragraph 8 of the SLA. Where paragraph 8 does not apply, the MOD will normally charge full costs.

A2. Recharging arrangements are set out in the tables below. UKTI and MOD may agree to vary the recharging regime in certain circumstances, as long as this is consistent with Treasury guidance.

Support provided by MOD to UKTI

SLA reference Category of Support Recharge BasisPara 17 Loan of Military

Personnel. MOD will charge UKTI calculated on the same basis as the transfer of funding.

Para 18 Loan of MOD Civil Servants.

MOD will charge UKTI calculated on the same basis as the transfer of funding.

Para 20 Office Accommodation. UKTI will pay to MOD the cost, an amount equal to the sums transferred for the period that UKTI DSO staff are in St George’s Court. MOD will pay 50% of the removal costs from St George’s Court.

Para 22 Continued access and use of MOD IT systems.

UKTI will pay to MOD the cost of ICT, an amount no more than the sum transferred, for the period that UKTI DSO staff are in St George's Court.

[Basis of charging in longer term to be confirmed once arrangements for IT provision is agreed].

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MOD Support to Defence Export Promotion

SLA reference Category of Support Recharge BasisPara 23 Day-to-day expert support MOD will bear the cost. No

charge to UKTI.

Para 24 Training and Support Services MOD will charge full costs (excluding the training element of the MOD capitation rates for military personnel).

Para 25 Dedicated expert support MOD will charge the marginal costs incurred by the individual, such as travel and subsistence, except where there is an explicit existing MOD commitment to provide support free of charge to another Government, under a MOU.

Para 27 Dedicated expert support ( Cost Assurance Group)

MOD will charge full costs.

Para 28 Equipment demonstration with military support

Where this access can be accommodated within the constraints of the normal or routine operational deployment programme,

Where this access can not be accommodated within the constraints of the normal or routine operational deployment programme, additional costs will be charged.

In cases where the task can not be accommodated within the MOD funded programme.

In all cases any additional costs incurred (e.g. producing brochures, translations, catering, hire of seats and marquees) will be charged.

No charge for use of military assets, but MOD will charge for any extra costs.

MOD will charge marginal costs, including use of assets (e.g. flying time).

MOD will charge full costs.

MOD will charge additional costs as necessary.

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Para 29 Exhibition support MOD will charge marginal costs for loans of less than six months. (UKTI may pay directly for travel and subsistence costs).

Para 30 Access To Communications Flying Assets

MOD will allow continuing access to the MOD Communications Fleet for VIP inward visits without charge, although the value of the service will be communicated to UKTI DSO.

A3. In line with normal practice, MOD will invoice UKTI monthly for costs incurred and UKTI will remit the appropriate funds, as soon as possible, and within the normal prompt payment target of 30 days.


A4. UKTI will, where practicable, subject to the availability of resources and on the basis of the level of service remaining at the levels for which resource was transferred, continue to provide support to MOD as follows:

SLA reference Category of Continuing Support Charging BasisPara 33 Disposal of Military Equipment No charge

Para 34 Industrial Participation No charge

Para 35 International Agreements No charge

Para 36 Memoranda of Understanding No charge

Para 37 Defence Industrial Strategy No charge

Para 38 Wider Factors Assessments No charge

Para 39 Hosting Visits No charge

Para 40 Briefing for MOD Ministers No charge

Para 41 Secretariat Services No charge

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Finance Administration

A5. This section describes the mechanics of the charging arrangements for support provided to UKTI, including the invoicing and payment arrangements.

Support Provided by MOD to UKTI

A6. A proportion of UKTI Defence & Security Organisation (UKTI DSO) costs will continue to be paid by MOD, and will then be recovered from UKTI. MOD will use its financial systems to capture costs attributable to UKTI DSO. The existing DESO budget codes and UINs (less those elements remaining in MOD – DGSAP, KPO and DESP) will remain live on the Defence Financial Management System (DFMS) and other systems (especially personnel systems – HRMS and JPA). This will allow identification and capture of the direct costs attributable to UKTI DSO that are to be re-charged to UKTI.

A7. MOD will appoint a budget manager who will be responsible for monitoring these costs and will act as the interface with the UKTI finance staff. The budget manager will be responsible for raising invoices for continuing support to UKTI.

A8. The table below sets out how the main elements of permanent support that will be provided to UKTI, and also how the financial arrangements between MOD and UKTI will operate.

COST CATEGORY FINANCIAL ARRANGEMENTS

Loan of Service Personnel – salary, and pay related allowances

All military staff will be on loan to UKTI and their salaries and allowances will continue to be paid by MOD. Costs will be re-charged to BERR/UKTI based on ‘actuals’.

Loan of Service Personnel – travel and subsistence

All military staff will be on loan to UKTI and will continue to require access to JPA for T&S claims. Costs will be re-charged to BERR/UKTI based on ‘actuals’.

Loan of Civilian Personnel – salary, overtime, allowances

On transfer, all current post holders filling loan posts will remain on MOD terms and conditions and will continue to have their salaries and allowances paid by MOD. Costs will be re-charged to BERR/UKTI based on ‘actuals’.

MOD staff recruited to fill these posts on loan after 1 April 2008, will do so on BERR pay and terms and conditions of service in line with normal inter-departmental practice.

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Loan of Civilian Personnel – travel and subsistence

On transfer, current post holders filling loan posts will continue to require access to HRMS for T&S claims. Costs will be re-charged to BERR/UKTI based on ‘actuals’.

From co-location, or earlier if agreed, post-holders filling loan posts will submit travel claims in accordance with BERR procedures.

Office Accommodation – St George’s Court

While UKTI DSO staff continue to occupy space in St George’s Court, UKTI will pay a rental charge to MOD equal to the amount of the resource transfer. The charge will be calculated on a monthly basis.

Accommodation for Export Support Team

UKTI will pay a rental charge to MOD equal to the amount of the resource transfer. The charge will be calculated on a monthly basis.

Access and use of MOD IT systems

While UKTI DSO staff continue to occupy space in St George’s Court, UKTI will pay a charge to MOD for IT no more than the amount of the resource transfer. The charge will be calculated on a monthly basis.

[Charging arrangements for services provided to UKTI DSO staff once in BERR accommodation to be confirmed once arrangements for IT provision are agreed].

Overheads UKTI will pay an amount to cover overheads calculated on the same basis as the transfer of funding. This will be calculated using the capitation rates published annually by Management Accountancy Services (Army).

The charge will be calculated monthly on the basis of the number of military and civilian staff on loan.

Restructuring costs for permanently transferred staff

MOD will pay UKTI the costs associated with early release of staff as a result of restructuring, up to a maximum of six posts.

Invoicing, payment and management information

A9. MOD will invoice UKTI for permanent support costs on a monthly basis. MOD will provide UKTI with sufficient supporting information to attribute costs to the appropriate account code and cost centre. The UKTI DSO Finance team will use this information to provide UKTI Corporate Finance with monthly management information to show spend against budget, and forecast outturn information for the

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year in a format which will enable the UKTI Executive Team and Accounting Officer to exercise appropriate control over the resources within the UKTI funding streams.

A10. MOD will also provide sufficient detail to enable UKTI to check the accuracy of the amounts being charged and to allow them to carry out compliance checks for Corporate Governance purposes. Information should include payroll details by service/staff number; overtime payments, and T&S claims. UKTI DSO finance staff should continue to have read-only access to the DFMS to allow verification of transactions that are being re-charged.

A11. UKTI will reimburse MOD as soon as possible, and within the normal prompt payment target of 30 days.

MOD Support to Defence Export Promotion

A12. Support provided under this heading (as set out in paragraphs 23 –30 of the SLA) is provided on a case-by-case basis and may potentially involve any part of MOD or the armed forces. The SLA sets out the basis of charges but the actual charges will need to be negotiated on a case-by-case basis between the service provider and UKTI.

A13. The MOD “service providing units” in the respective Top-Level Budgets (TLBs) will invoice UKTI for tasks carried out under this heading and will ensure that payment is credited to the appropriate MOD budget. All MOD costs will be recovered direct from UKTI. Where contributions from industry are due these will be collected by UKTI.

A14. UKTI will reimburse MOD as soon as possible, and within the normal prompt payment target of 30 days.

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ANNEX B

UK TRADE & INVESTMENT REPRESENTATION ON MINISTRY OF DEFENCE BOARDS AND COMMITTEES

B1. MOD will ensure that staff from UKTI Defence & Security Organisation are provided with the opportunity to be represented on those MOD Boards and other committees where there are defence export interests.

B2. A representative, but not exhaustive list of these is as follows:

National Defence Industries Council Meetings

Defence Industrial Strategy “Two Star Whitehall Group”

International Security Co-operation Board

Typhoon Senior Officials Group

Ministers and Chiefs of Staff High-Level Politico-Military Outward and Inward Visit Planning Meetings

RN Operations Policy Meetings

Standing Committee on Army Sales Support

Disposal Services Agency Project and Marketing Committees

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ANNEX C

POSTS FILLED BY MOD STAFF ON LOAN

MILITARY

Officers

Col(Army)

Capt(RN)

Wg Cdr

(RAF)

Lt Col (Army)

Cdr(RN)

Maj (Army)

Sqn Ldr

(RAF)

Capt (Army)

Totals

London 1 1 5 4 6 0 1 0 18Bovington 0 0 0 0 0 1 0 2 3Larkhill 0 0 0 0 0 1 0 0 1Totals 1 1 5 4 6 2 1 2 22

Other grades

WO1 (Army)

WO2 (Army)

SSgt (Army)

Sgt (Army)

Cpl (Army)

Bdr (Army)

LBdr (Army)

Totals

London 1 0 0 0 0 0 0 1Bovington 1 5 1 3 4 0 0 14Larkhill 0 2 1 5 0 2 2 12Totals 2 7 2 8 4 2 2 27

NB: Military numbers above do not include one Lt Cdr (RN) based in Portsmouth (Part funded by DAF and part by RN) but who reports to DESO RD Central from 1 April 2008 to 5 April 2009.

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CIVILIAN

SCS Band B Band C1 (incl

faststream)

Band C2

Band D

Band E Totals

BERRFCO equivalents

SCSSMS

R11,10D7,6

R9C5

R8,7C4

R6,5B3

R4,3,2A2,1

London 7 11 8 15 6 0 47

Bovington/Larkhill

0 0 0 0 0 2 2

Overseas 0 7 6 1 0 1 15

Totals 7 18 14 16 6 3 64

Staff in London and Bovington/Larkhill are on loan to BERR.

MOD staff overseas transfer on loan to FCO but when their tour ends, they will be replaced by staff recruited using standard UKTI arrangements.

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ANNEX D

HUMAN RESOURCES ARRANGMENTS

Permanently Transferred Staff

Transition arrangements

D1. Permanently transferred civilian staff will, in due course, move, through negotiation between BERR and the TUs, towards a fuller alignment of pay and conditions with other BERR staff. Until terms and conditions are aligned, UKTI will require appropriate support from the relevant MOD HR teams and, if appropriate, MOD Welfare Services. The support from MOD HR teams will normally be accessed by individuals direct with the PPPA or, where the issue is more complex, through the UKTI HR team.

Right of Return to MOD

D2. Permanently transferred staff will be given access to MOD internal recruitment systems and have the right to apply for internally advertised MOD vacancies, for which they are eligible, until 31 March 2011. If successful in obtaining a permanent post, staff will transfer back to MOD on permanent terms. UKTI agrees to release successful applicants in accordance with MOD policy on the release of staff. If the post in MOD is a temporary opportunity there would need to be prior agreement between the manager concerned and UKTI HR.

Access to Assessment Centres

D3. All eligible permanently transferred staff will have access to MOD Band D and B Assessment Centres for a period of three years from the date of transfer.

Access to MOD early departure schemes

D4. Permanently transferred staff who remain within UKTI Defence & Security Organisation (UKTI DSO) will be given the opportunity to apply for any MOD early departure schemes open to London-based MOD staff, for which they are eligible, announced before Vesting Day or announced within one year of Vesting Day.

Access to childcare facilities

D5. Permanently transferred staff will continue to have access to MOD Main Building crèche facilities.

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Access to MOD training

D6. Permanently transferred staff and staff subsequently filling those posts, including any relevant UKTI staff, will be able to access to any MOD-specific training that they might require in order to manage MOD staff on loan.

MOD Civil Servants on Loan

Staff transferring on loan on 1 April 2008

D7. MOD Civil Servants occupying posts that transfer to BERR under loan terms will remain MOD employees and remain on the pay, terms and conditions, grievance, discipline and inefficiency (and similar) processes of the MOD. The loan is managed in line with the details outlined in the MOD “Outward Interchange Agreement” which has been agreed between relevant HR teams.

D8. MOD staff transferring on loan will be appraised by their UKTI line management on the MOD appraisal system, to MOD timetables and be entitled to be considered for MOD performance bonus rewards. Staff will be eligible to participate in or be nominated for all MOD reward, recognition and suggestion schemes.

Services provided to MOD staff on loan

D9. Subject to resolution of accommodation and location issues, UKTI will provide office accommodation and support for MOD staff on loan at the level provided to BERR staff. MOD staff will have access to the same standard of security, health & safety, facilities and amenities as equivalent BERR staff.

D10. The Human Resources Team in UKTI will help provide administrative support to staff on loan from the MOD (and, where necessary, permanently transferred staff remaining on MOD terms and conditions of service).

D11. MOD staff on loan will continue to have access to any MOD professional learning and development opportunities that they might require in order to perform their duties.

Duration of loans

D12. Each individual serves a fixed loan term, which will be set at the outset of the appointment by agreement between the MOD and UKTI. Each term would not normally be for more than 3 years. The period may be extended by up to a further 12 months by agreement between UKTI and the MOD. At the end of the fixed term, the individual returns to the MOD and becomes the responsibility of the MOD.

D13. Although staff will be encouraged to fulfil the full loan term, they will be entitled to apply for MOD vacancies during this period. BERR will undertake to release these staff in accordance with MOD policy.

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D14. During the loan period staff may apply for posts for which they are eligible in MOD and for posts in UKTI/BERR that are open to MOD staff.

D15. Staff return to the MOD on the agreed date for the end of their loan period. Their return will be managed in accordance with MOD policy.

Replacing staff in loan posts

D16. UKTI is responsible for filling vacancies in the posts listed at Annex C. MOD agrees to publish advertisements for these vacancies through its internal recruitment system. MOD recognises that UKTI may additionally wish to advertise these vacancies elsewhere. MOD agrees to release successful candidates within four weeks of a formal offer from UKTI.

D17. MOD staff recruited to fill these posts on loan after 1 April 2008, will do so on BERR pay and terms and conditions of service in line with normal inter-departmental practice and the above specific provisions relating to the staff transferring on 1 April 2008 will not apply.

Overseas Civilian Staff.

Terms and Conditions for transferring staff

D18. Current post-holders will remain on MOD terms and conditions of service, unless negotiated otherwise. When their overseas posting comes to an end MOD staff will return to the MOD. Until they take up another post on return to MOD, they will be the responsibility of their MOD owning unit. This unit will provide administrative and career support to the staff on loan and take on budget responsibility for them on their return.

D19. Periods of loan of the current post-holders are established on an individual basis – based on post holder length of time in post on Vesting Day and on business need. Whilst on loan, staff are able to apply for other jobs within MOD, and UKTI agrees to release successful applicants in accordance with MOD policy.

D20. Current UK-based civilian staff overseas remain subject to MOD performance and reward procedures, unless agreed otherwise. MOD, FCO and UKTI will ensure that access to these and other personnel information is made available, as now.

Replacing current MOD staff overseas

D21. When the current MOD post-holder moves on, the post will be advertised in MOD, FCO and BERR and the successful candidate will go on loan to the FCO on FCO pay, terms and conditions for the duration of their loan. This will ensure that these posts are then filled in the same way as all other UKTI owned posts in the FCO’s overseas network. At the end of their posting they return to, and become the

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responsibility of, their parent department. The MOD will provide career support to MOD staff on loan and take on budget responsibility for them on their return.

Locally Engaged Civilians (LECs)

D22. LECs will continue under existing local contractual arrangements and in compliance with local laws. UKTI will be responsible for funding the full economic cost of LEC positions.

Military Postings. Duration of military postings

D23. These postings are of fixed duration and MOD will seek to identify and provide replacements prior to the end of tour date. The MOD Joint Services Administration Unit will provide any necessary administration advice and support to these military staff and their managers in UKTI, as appropriate, while on loan to UKTI. Those personnel outside London will continue to be administered by their local administration unit. Military personnel on loan to UKTI will need access to the Defence Information Infrastructure.

Reporting arrangements for military staff

D24. The annual reporting arrangements for these staff follow existing military reporting procedures and are to their UKTI DSO line managers. Terms of reference and job descriptions for each post will be agreed and reviewed regularly by UKTI DSO line managers.

Training for military staff

D25. Military staff will be given access to the MOD training they require in order to report on and manage MOD civilian staff within UKTI DSO. UKTI staff managing military staff will also be given access to this training.

Operational Augmentation

D26. Personnel loaned by the MOD to UKTI are routinely out of scope for selection to fill temporary augmentation commitments. However, if, in an exceptional case, it is necessary for a member of the embedded staff within UKTI to be considered for such a deployment, where the best interests of Defence require such an approach, the request should be referred to the Senior Military Advisor, accompanied by offer to backfill the position as soon as possible.

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Provision of HR services

D27. Prior to collocation, MOD will continue to provide a number of HR support services to UKTI. These have been agreed between MOD, UKTI, BERR and FCO HR and are detailed in a separate agreement. In particular, there is a requirement for MOD to continue to provide permanently transferred staff and civilian loaned staff with a payroll and personnel administration services until the transfer of payroll responsibilities to BERR. These services will be delivered through the same systems as currently provided by MOD to DESO and will be maintained to enable staff and management to have access to the HR services they currently receive.

D28. Upon collocation, BERR will take on these responsibilities. MOD will continue to provide HR advice and administrative support, as necessary, while staff remain on MOD terms and conditions of service.

D29. MOD will maintain existing payroll and personnel administrative support to all military staff on loan to BERR, throughout the period of their loans. Access to JPA will be made available.

D30. The PPPA will provide UKTI access to a dedicated customer account manager, to act as a single point of contact on HR queries. This service will be maintained after collocation in order to support the administration of staff on loan and those permanently transferring staff as long as they remain on MOD terms and conditions.

Note – the word “loan” is used above to describe a move (of civilian staff) between Civil Service Departments, in line with the usage in BERR, FCO and UKTI; the MOD usage covering the same concept is “secondment”.

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ANNEX E

ACCESS TO IT

E1. The requirement for the Ministry of Defence to continue to provide UKTI Defence & Security Organisation (UKTI DSO) staff with IT access needs to cover both the period immediately following transfer when the group will remain in its existing locations1: St George’s Court, Larkhill & Bovington, and ongoing provision following collocation of staff in London with UKTI colleagues:

From 1 April 2008

E2. DESOnet will continue to be provided and supported, with full access to MOD applications essential to the business of the organisation, including (but not exclusive to):

a. MOD Finance Systems b. HRMSc. JPAd. Defence Nete. Defence Directory

E3. Both CHOTS and DII(C) will continue to be provided and supported so that UKTI DSO staff will continue to have access to a Secret IT solution and to AMRAD signal messaging respectively.

E4. Appropriate UKTI DSO staff will continue to use an IMN terminal to process highly classified material. Support for this terminal will continue to be provided by the MOD as required.

E5. The UKTI DSO Export Support Teams at Larkhill and Bovington will remain on DESOnet receiving the necessary support required until such time as their establishment migrates to DII(F).

From Collocation

E6. UKTI DSO will operate on the BERR ELGAR IT System, but the MOD will provide access to applications essential to the business of the organisation:

a. MOD Finance Systems b. HRMSc. JPAd. Defence Nete. Defence Directoryf. Military Signals

1 This does not include DESO/UKTI DSO staff overseas who have always used FCO IT systems and will continue to do so.

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E7. In accordance with the migration schedule for their establishment, the UKTI DSO Export Support Teams will migrate to DII(F) and will be provided the appropriate levels of support accordingly.

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ANNEX F

INDUSTRIAL PARTICIPATION ARRANGEMENTS

The Role of UKTI

F1. Following the transfer of responsibility, the following will become the role of UKTI Defence & Security Organisation (UKTI DSO):

a. Work with MOD to identify when IP is applicable;

b. Obtain and assess IP proposals where there is offshore content on MOD programmes;

c. Negotiate IP agreements with offshore companies;

d. Negotiate IP/offset abatements where applicable;

e. Provide inputs to Business Cases in accordance with the Defence Industrial Strategy (DIS) / Defence Technology Strategy (DTS) and the Defence Technology Plan (DTP);

f. Monitor agreements to a successful conclusion; and

g. Along with MOD, represent UK at international/other meetings on offsets.

Support from MOD to UKTI

F2. MOD will provide the following support to UKTI DSO:

a. MOD as policy holders of IP will ensure that UKTI have clear direction on how this policy will be implemented. MOD and UKTI will maintain regular dialogue and meet formally to discuss IP issues at least twice per annum;

b. MOD will provide UKTI with an assessment of the worth of any IP proposal to the DIS, DTS, DTP. MOD will respond to UKTI within 7 working days of receipt;

c. MOD will, as appropriate, provide UKTI with guidance on the extent of user rights of any IP proposal. MOD will respond to UKTI within 7 working days of receipt; and

d. MOD will keep UKTI informed of new programmes and changes to existing programmes so IP proposals can be invited in accordance with MOD’s IP policy. This will include responding positively to requests for information. MOD

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will also request inputs from UKTI at key decision points, including during the production of business cases. MOD will allow UKTI up to 5 working days to input to draft business cases.


F3. UKTI DSO will provide the following support to MOD:

a. UKTI will maintain close working links with MOD to ensure implementation of IP is coherent with MOD policy. MOD and UKTI will maintain regular dialogue and meet formally to discuss IP issues at least twice per annum;

b. UKTI will, as requested, support MOD in international/other discussions/meetings on offsets;

c. UKTI will submit an annual report on IP implementation to MOD indicating the number of Business Cases provided, Letters of Agreement signed and the value of IP generated in each financial year. The report will also contain a declaration that the work generated through IP is in accordance with MOD’s IP policy. UKTI will submit the report to MOD within one month of the end of each financial year;

d. UKTI will provide data to MOD on relevant MOD Key Suppliers’2 past performance on IP. Up-to-date progress reports on delivery of extant IP commitments by MOD overseas-based Key Suppliers provided to MOD in accordance with annual performance reporting cycle for each supplier. MOD will advise UKTI on timescales; and

e. UKTI will provide inputs to MOD for Business Cases in accordance with the DIS. UKTI will reply within 5 working days of receipt.

2 MOD conducts Key Supplier Management and can provide an up-to-date list of Key Suppliers. Where overseas-based Key Suppliers undertake industrial participation commitments in relation to MOD contracts, MOD will reflect progress in undertaking those commitments in annual performance reports completed on the Key Supplier.

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