§ Mr. Simsasked the Secretary of State for Defence what criteria are used in determining when the Armed Forces should purchase their requirements direct from suppliers and when they should use the services of the Property Services Agency in the Department of the Environment; and what additional charge is levied by the PSA for their services.
§ Mr. DuffyThe Ministry of Defence uses the services of the Property Services Agency when its purchasing arrangements and expertise suggest that this is the most efficient and economical arrangement. PSA charges cover the basic purchase price of the commodity plus elements for administrative and other costs varying according to the nature of the service provided.