§ Mr. MorganTo ask the Secretary of State for Defence in what proportion of market-testing exercises under his Department's rubric in(a) 1993–94 and (b) 1994–95 have not been accompanied by in-house bids; what is the anticipated proportion of market-testing exercises without in-house bids during 1995–96. [20865]
§ Mr. FreemanMarket testing is an integral part of the wider "Competing for Quality" process, and involves testing the efficiency of an in-house service by exposing it to competition with commercial bidders.
In the 12–month period from 1 October 1993 to 30 September 1994, 42 defence support activities were subjected to the "Competing for Quality' process, of which five were market-tested and two were won by the in-house bid.
From 1 October 1994 to date, of the 23 activities examined only one has been subject to a market test. This was won by a commercial bidder.
It is not known what the anticipated proportion of market-testing exercises will be in 1995–96. This will depend on the outcome of feasibility studies which determine how best activities can be exposed to competition from the private sector.
§ Mr. MorganTo ask the Secretary of State for Defence what guidelines he has issued to the Royal Air Force with respect to the circumstances in which the Air Force(a) will and (b) will not submit in-house bids in market-testing exercises for support services at RAF stations. [20864]
§ Mr. FreemanNo guidelines have been issued to the Royal Air Force with respect to the submission of in-house bids in market-testing exercises for support services at RAF stations. The circumstances of each activity or function will differ and each is looked at individually under the "Competing for Quality" procedures. Market testing is encouraged wherever it is the appropriate way forward.
499W
§ Mr. MorganTo ask the Secretary of State of Defence what target has been set for out-of-house successes in bids under market-testing procedures undertaken during the present financial year. [20866]
§ Mr. FreemanNo targets are set for out-of-house successes in bids under market-testing procedures in any financial year. The outcome of a market test is based solely on the merits and value for money and quality of service demonstrated by competing bidders.