§ Mr. RedmondTo ask the President of the Board of Trade what contracts his Department and his agencies have with Serco Ltd; what is the current cost; when each contract ends; what are the penalties involved should he seek early termination of the contract; and if he will make a statement. [26687]
Mr. John M. TaylorDetails of the two contracts that my Department currently has with Serco Ltd. are as follows.
The DTI has a contract with NPL Management Ltd.—a wholly owned subsidiary of Serco Group plc—to operate the National Physical Laboratory on behalf of my Department. A programme of work broadly defined in the contract is commissioned from NPL by my Department on terms similar to those which apply to the procurement 368W of research and development from all third parties, and at a rate negotiated prior to award of the contract. Serco does not, however, receive any fee for operating NPL on behalf of the DTI. The contract is for a period of five years from 1 October 1995. Early termination is provided for in the contract, but this does not commit my Department to any penalty payments.
The National Weights and Measures Laboratory—an executive agency within DTI—has a contract with Serco to maintain its building and plant. The cost of the contract is dependent on the extent of the work required in any year. The cost in 1995–96 was £91,378. The contract expires on 30 September 1996. Early termination is provided for in the contract subject to three months' notice, but this does not commit the agency to any penalty payments.