The MoD explained that the incentives for the LCST contract were intended to prioritise efficiency, but that medical supplies are a difficult area in which to achieve efficiencies. From 2019, the MoD changed the contract’s incentivisation by taking back a portion of the fee and returning it only if Team Leidos hit time targets and was able to deliver new projects and equipment faster. This did yield improvements; for example, the number of new medical equipment projects increased from six a y...

The MoD explained that the incentives for the LCST contract were intended to prioritise efficiency, but that medical supplies are a difficult area in which to achieve efficiencies. From 2019, the MoD changed the contract’s incentivisation by taking back a portion of the fee and returning it only if Team Leidos hit time targets and was able to deliver new projects and equipment faster. This did yield improvements; for example, the number of new medical equipment projects increased from six a year to around 36.40 However, performance for medical had still not improved to the required level, and in 2023, the MoD approved further improvement init Type: conclusion | Number: 18 | Response status: accepted Government response: 5.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2025 5.2 There has been notable transformational change injected into the LCST contract over recent years including a £13.2 million uplift in staff employed inside the D