§ 24. Mr. Michael Marshallasked the Secretary of State for Defence, how many contracts have so far been awarded under the cardinal points system; and whether he will make a statement.
§ Mr. LeeCardinal points specifications are a fairly recent derivative of the "performance" specifications which have been used in Ministry of Defence procurement for some time. Four contracts have so far been placed following competitive tendering on the basis of cardinal points specifications. Over 30 further cases are in the pipeline.
The use of "cardinal points" specifications is one of the methods of contracting through which the Ministry of Defence seeks to maximise the scope for contractors to meet its requirements in a way which enables the Ministry to obtain maximum freedom of choice. The method is used for purchases in those areas where firms have developed or are developing equipment to meet wider markets.