§ Mr. Greg Knight
To ask the Secretary of State for Defence how he achieves value for money on non-competitive contracts.
§ Mr. Sainsbury
We seek to place work by competition wherever it is practical and sensible. Where work has to be placed without the benefit of competition we negotiate taut contract terms and conditions and make maximum use of incentive pricing under the government profit formula. We also encourage the greatest practicable line of competition for sub-contracts.