§ Mr. FlynnTo ask the Secretary of State for Defence what is his current calculation of the costs of preparation for market testing in his Department in terms of(a) payments to consultants and (b) other costs.
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§ Mr. FreemanThe MOD's competing for quality programme, which includes the market testing of activities, aims at achieving long-term savings and quality improvements in relation to the resources required to undertake the services involved. In the period April 1992 to September 1993, some £346.2 million of activities were exposed to the competing for quality process, creating gross savings of £19.8 million. Final details for the year ending September 1994 are not yet available, but activities in excess of the target £216 million have been exposed to the competing for quality process with expected saving of 20 per cent. A breakdown of the Department's costs from April 1992 to June 1994 is as follows:
- Consultancy costs £3.1 million
- Other costs £5.4 million
§ Mr. JamiesonTo ask the Secretary of State for Defence in what circumstances individuals or companies will be prohibited from bidding for his Department's work in respect of market testing or contracting out.
§ Mr. FreemanIn selecting companies to tender for MOD work, the Department has a responsibility to ensure that the companies are satisfactory in terms of financial standing, and that they have the technical capability and capacity to perform the work.