§ Mr. Garro Jonesasked the Under-Secretary of State for Air whether he will name the two firms of structural engineers selected for their reputation for efficiency as a test of the reasonableness of the common tender of £548,000 submitted by 40 firms for steelwork for hangars; and whether the original cost accounts of these firms were investigated during the test?
§ Lieut.-Colonel MuirheadIt would not be in the public interest to give the information asked for in the first part of the question. The answer to the second part is in the affirmative.
§ Mr. Garro Jonesasked the Under-Secretary of State for Air whether any Air Ministry contractor has declined, in the last two years, to give the Air Ministry accountants access to account books which they requested to see, or declined to give the Air Ministry information for which they asked regarding costs?
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§ Mr. E. Brown,pursuant to his reply (OFFICIAL REPORT, 6th May, 1937; col. 1225, Vol. 323) supplied the following statement:
§ Lieut.-Colonel MuirheadIn all cases where price is determined in relation to actual costs, the contract provides for the necessary inspection of books. But apart from these cases where the right of inspection is expressly provided for in the contract, in negotiating contracts the Air Ministry frequently require information from the firms' accounts. Although there have been some cases where firms have been unwilling to give all the information asked for, it is fair to say that the attitude of firms in general has been reasonable and helpful; and the agreement entered into between the Air Ministry and the Society of British Aircraft Constructors recognises the right of the Air Ministry to have the full facilities of inspection they require.
§ Mr. Garro Jonesasked the Under-Secretary of State for Air whether the figures of contracts which did not receive his prior approval include contracts placed by way of provisional instructions to proceed; and, if so, on what basis the price has been arrived at?
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§ Lieut.-Colonel MuirheadInstructions to proceed in cases where competition was possible are included in the figures already furnished in respect of cases submitted for ex post facto approval to dispense with competition, since for the purposes of the regulations which the hon. Member has in mind no distinction is made on account of the manner in which the order is to be placed. In the case of instructions to proceed the provisional prices are based by the Department on the data available, are on the conservative side, and leave an appropriate margin of safety pending the settlement of final prices.