Telephone Equipment (Bulk Purchase Agreements)

HC Deb 21 July 1960 vol 627 cc65-6W

Mr. Gresham Cooke

asked the Postmaster-General if he will publish in the OFFICIAL REPORT the terms of the bulk purchase agreement for the purchase of telephone equipment from members of the consortium of suppliers of such equipment.

Mr. Bevins,

pursuant to his reply [OFFICIAL REPORT, 20th July, 1960; Vol. 627, c. 472], circulated the following:

MEMORANDUM COVERING THE TERMS OF THE POST OFFICE BULK PURCHASE AGREEMENTS

1. The Post Office undertakes for the period of the agreement—usually five years—to place all its orders for the particular products with the group of contractors who are party to the agreement. Certain reservations are in the terms of the agreements which are set out later.

2. The contractors nominate one of their members to undertake each individual order, and confirm the required delivery date. Generally, the Post Office accepts the nomination made.

3. Patents held by the contractors are pooled.

4. All the contractors receive the same price rates for the goods supplied or services rendered.

5. Basic prices are fixed for the term of the agreement subject to adjustment in respect of variations in rates of wages and the cost of materials. These basic prices are fixed as the result of cost investigation at various contractors' works selected by the Post Office.

6. The Post Office reserves the right to manufacture apparatus in its own factories.

7. The Post Office reserves the right to contract with anybody for the manufacture and supply of apparatus which embodies some new principle or method of working and is intended to be used for experimental purposes. Apparatus so supplied for experimental purposes may be used for the public service.

8. The Post Office reserves the right to enter into a contract with anybody for manufacture and supply if this in the opinion of the Postmaster-General would advance the interests of the country's export trade.

9. The Post Office reserves the right to place a given percentage (usually about 10 per cent. annual average) of its orders with non-signatories to the agreement.