§ Mr. Barry FieldTo ask the Secretary of State for Defence what is his policy with regard to maximising competition in the letting of defence procurement contacts.
§ Mr. SainsburyAs part of our commercial approach to defence procurement, we use competitive tendering, wherever practicable, in the letting of contracts. The proportion by value of contracts let on a competitive basis in 1986–87 was 53 per cent., reflecting a sustained improvement on the 38 per cent. of contracts let in this way in 1983–84. Where work has to be placed without the benefit of competition, we negotiate taut contract terms and conditions. On all contracts, whether competitive or not, we also encourage our prime contractors to make maximum use of competition in placing work. On all contracts over £1 million in value we review with the prime contractor his plans for sub-contract competition.