PSA Projects (Hansard, 20 January 1993)

§ Mr. McFall
To ask the Secretary of State for Defence how many contracts between the pre-privatised PSA Projects and his Department were amended to ensure a greater proportion of(a) contract costs and (b) fee income became due in the period preceding the transfer of projects to the private sector.

§ Mr. Aitken
None. The only revisions made were to total fees where the level was considered to be disproportionate to the contract costs and the work involved. This negotiation was unconnected to the sale of PSA Projects.

§ Mr. McFall
To ask the Secretary of State for Defence what value of new work the MOD has guaranteed to PSA Projects Ltd; and how the MOD will ensure it receives value for money.

§ Mr. Aitken
The MOD has a contract with PSA Projects for architectural, design and related services to the value of £8 million. This contract ensures value for money through predetermined prices and its provision for termination if the company's performance is unsatisfactory.

§ Mr. McFall
To ask the Secretary of State for Defence if he will list each project undertaken by PSA Projects Ltd. for his Department by name and value; and if he will publish for each of these projects a breakdown of the proportion of fees to be earned at each stage of the project.

§ Mr. Aitken
The information that the hon. Member requests could not be provided without incurring disproportionate costs. My Department has contracts with PSA Projects Ltd. for some 480 projects with an estimated total value of £4 billion. The phasing of fee payments is related to progress achieved.

§ Mr. McFall
To ask the Secretary of State for Defence what is the total value of contracted work currently undertaken by PSA Projects Ltd.. at the Faslane and Coulport sites; and what was the total value of contracts held by PSA Projects for work at the Faslane and Coulport sites on 1 November 1992.

§ Mr. Aitken
The total value of the outstanding project management task which PSA Projects Ltd. is contracted to undertaken on Trident works at Faslane and Coulport, including costs for employment of consultants, is some £69.3 million. As at 1 November 1992, the total outstanding value of the supply and service agreements for Trident works at Faslane and Coulport with PSA Projects was £81.9 million. The value of other non-Trident work at Faslane and Coulport with PSA Projects Ltd. is about £3 million.