HC Deb 03 February 1997 vol 289 cc485-6W
Mr. Key

To ask the Secretary of State for Defence in what circumstances and in what ways the contract for supply of food for the armed forces announced on 28 January can be varied by(a) his Department and (b) the Booker Foodservice Group. [14116]

Mr. Soames

The food supply requirement for the armed forces is not static and can change sometimes at short notice, in both volume and location. The contractor will be required to respond effectively to any such changes, including supplies needed for operations and exercises. The contract could therefore be varied by the Department to take account of changes in the contracted requirement. It could also be varied by mutual agreement to reflect economies or efficiencies in operation identified by either party if considered to be in the Department's interest.

Mr. Key

To ask the Secretary of State for Defence what external or consultancy advice was used to evaluate tenders received in the competition for the follow-on contract for the supply of food to the armed forces announced on 28 January. [14120]

Mr. Soames

Four commercial advisers, all senior managers from blue chip companies in the food industry, together with a consultant, were appointed to provide expert advice and independent scrutiny of the evaluation process.

Mr. Key

To ask the Secretary of State for Defence if he will place in the Library the tender document for the contract to supply food for the armed forces announced on 28 January. [14115]

Mr. Soames

The tender document contains commercially sensitive information and cannot be made available.

Mr. Key

To ask the Secretary of State for Defence if he will list the criteria against which bids for the contract to supply food to the armed forces announced on 28 January were judged. [14119]

Mr. Soames

Tenders were subject to thorough commercial and technical evaluation. The commercial factors assessed included price, buying policy and strategy, efficiency and improvement proposals and contract conditions, as well as company financial status. The technical factors evaluated included the proposals on management, phase-in, quality, commodities, ordering and distribution, and information technology as well as the response to meet overseas requirements and the need of exercises, operations and war. The competitors were briefed on the evaluation criteria at the outset of the competition.

Mr. Key

To ask the Secretary of State for Defence in what respects the contract with Booker Foodservice Group for the supply of food to the armed forces reflects the recommendations of the National Audit Office report "Ministry of Defence: Supply of Food to the Armed Forces," HC 66 of Session 1996–97. [14127]

Mr. Soames

The lessons learned from the first contract identified in the National Audit Office report have been taken fully into account.

Mr. Key

To ask the Secretary of State for Defence what is the value of the contract for supply of food for the armed services announced on 28 January; and on what date the first and subsequent payments will be made. [14117]

Mr. Soames

The estimated value of the contract will be in excess of £400 million over five years. Payments for the cost of food supplied will be paid fortnightly in arrears against verified receipts. Legitimate costs incurred by Booker Foodservice Group before the start of operations in October will be paid against agreed and verifiable milestones. The date of the first payment has not yet been established.

Mr. Key

To ask the Secretary of State for Defence if he will list those parties that submitted tenders in respect of the contract for the supply of food for the armed forces announced on 28 January, indicating on what date each tender was received; and when was the closing date for the receipt of tenders. [14121]

Mr. Soames

Tenders were received from Booker Foodservice Group Ltd. and NAAFI. Both tenders were received on the closing date of 25 July 1996.

Mr. Key

To ask the Secretary of State for Defence for what reasons the follow-on contract for supply of food to the armed services announced on 28 January will run for five years in place of the current three-year contract. [14118]

Mr. Soames

The current food supply contract was awarded to NAAFI without competition in 1994 because, at that time, the requirement could not be adequately defined and was expected to change significantly as a result of "Options for Change" and the defence cost studies. It was considered that NAAFI, which already provided 50 per cent. of the food, was best placed to meet the task and that three years was the minimum time required to establish a service from which a competition for a follow-on contract could be devised. The new contract will be for a five-year period, which is considered the most appropriate to secure the best value for money.