§ 109. Mr. CoxTo ask the Secretary of State for Defence if he will give details of his policy to offer small companies in the United Kingdom the opportunity to tender for defence contracts; and if he will make a statement.
§ Mr. Alan ClarkSmaller companies are especially encouraged to compete for defence work under the successful small firms initiative.
Between November 1986 and October 1988, about 4,000 companies sought guidance and information on how to sell to the Ministry of Defence from the then MOD small firms advice division. A further 1,800 companies have sought advice since the division was relaunched in November 1988 as the new suppliers service, which contains a specialist small firms group. The group provides advice to new companies on how to sell to the MOD. Over the past three years, MOD has made direct payments to small firms totalling around £1 billion each year, and the number of small firms receiving direct payments has increased from about 4,000 in 1986–87 to over 5,500 in 1988–89. Registration of new companies on the defence contractors list remains high. In 1988, about 300 small firms were registered, the same as in 1987. To help companies gain visibility of our requirements, we publish 245W our contract opportunities in a fortnightly "Contracts Bulletin". Small firms are encouraged to bid for work direct, or as sub-contractors to our major suppliers.
We shall continue actively to encourage the important contribution of small companies to obtain better value for money.