HC Deb 22 March 1974 vol 870 c180W
Mr. Warren

asked the Secretary of State for Defence if he will ensure that all contracts awarded to suppliers include identification of the sums to be expended directly on drawing office work and that such sums will not be permitted to be charged as part of the overheads of the supplier.

Mr. William Rodgers

In competitive work we do not investigate the way in which prices are made up but rely on competition to ensure that they are fair and reasonable. In non-competitive work such sums are normally identified. By agreement with industry only a selection of non-competitive contracts are post-costed, but where this is done a check is made that costs have been recovered on the same basis as that agreed when the contract prices were negotiated.