§ 29. Mr. Ben ChapmanTo ask the Secretary of State for Defence when he will make an announcement on the award of a contract for roll-on, roll-off vessels. [127285]
§ Mr. HoonThe competition for the Strategic Sealift (RORO) service is very close and more than one bidder has made improved offers which cannot be taken into account under the existing procedures. Moreover, circumstances have changed significantly since the original bids were submitted on 14 January; not least as a consequence of the British Aerospace merger with Marconi Electronic Systems. We have therefore decided that, to ensure the best value for money to the taxpayer, we should conduct a further round of bidding.
This will allow UK shipyards the opportunity to show that they can be competitive, but we have not changed the specification for the competition. The decision will still be taken on best value for money grounds, and all bidders will be treated fairly under the European public procurement rules which still apply to the competition.
After consulting the bidders and explaining the reasons for this further round, the Ministry of Defence has invited the four competing consortiums to "Revise and Confirm" their bids by 6 July 2000. It remains the MOD's intention to place a contract later this year.