HC Deb 10 January 1989 vol 144 c525W
16. Mr. Campbell-Savours

To ask the Secretary of State for Defence what action he is taking to stop excess and undue profits in defence procurement.

Mr. Bernie Grant

To ask the Secretary of State for Defence what action he is taking to stop excess and undue profits in defence procurement.

75. Mr. Stern

To ask the Secretary of State for Defence what initiatives have been taken by his Department to assist smaller firms to bid successfully in defence contracts.

79. Mr. Maxton

To ask the Secretary of State for Defence what action he is taking to stop excess and undue profits in defence procurement.

85. Mr. Ashton

To ask the Secretary of State for Defence what action he is taking to stop excess and undue profits in defence procurement.

Mr. Sainsbury

The most effective way of securing keen prices is through competition, and there has been a steady increase since 1979 in the proportion, by value, of contracts placed in a competitive environment. During the same period there has been a significant decrease in the proportion, by value, of contracts priced on the basis of cost plus a percentage fee for profit. Where contracts have to be placed non-competitively we continue to seek all information relevant to pricing, and to use post costing on a selective basis.