Contracts (Hansard, 11 January 1994)

§ Mr. Menzies Campbell
To ask the Secretary of State for Defence how much money was set aside in(a) 1990, (b) 1991 and (c) 1992 to cover increased costs incurred through delay in producing contracts placed by his Department.

§ Mr. Aitken
None.

§ Mr. Menzies Campbell
To ask the Secretary of State for Defence what percentage of contracts placed by his Department in the last five years show cost increases in excess of 25 per cent. by the time of completion.

§ Mr. Aitken
The information is not held centrally and could be provided only at disproportionate cost.

§ Mr. Menzies Campbell
To ask the Secretary of State for Defence what measures his Department has taken to ensure that contracts with foreign companies do not cost more than originally planned.

§ Mr. Aitken
My Department's aim is to award contracts to United Kingdom and overseas suppliers at fixed or firm prices, against tight specifications.

§ Mr. Menzies Campbell
To ask the Secretary of State for Defence what is the standard practice of his Department on indexing payments for inflation up until the scheduled delivery date only in contracts for the procurement of equipment.

§ Mr. Aitken
My Department would normally consider the indexing for inflation of payments to contractors in any contracts with a duration of over five years. Our standard practice is not to continue such indexing beyond the scheduled delivery date if contracts fail to achieve this.