§ Mr. HancockTo ask the Secretary of State for Defence what evaluation of past performance is included in the assessment of bids for defence procurement contracts; and what criteria are included when considering bids from contractors who have not previously supplied his Department. [69411]
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§ Mr. SpellarThe MOD takes account of a company's capability and capacity, including past performance, when deciding which companies should be invited to tender. Where there is uncertainty about the ability of firms to meet the requirement, companies that have expressed interest, including potential new suppliers, are normally asked to complete a pre-qualification questionnaire to provide information on, among other matters, their technical capability and delivery history. As part of the implementation of Smart Procurement, we are seeking, jointly with Industry, to reinforce our procedures for taking account of past performance in assessing tenders.
§ Mr. HancockTo ask the Secretary of State for Defence what assessment he has made of the profit margins included in bids made by tenderers for defence procurement contracts. [69410]
§ Mr. SpellarThe Ministry is unaware of the level of profit included in competitive bids for defence procurement contracts since this is a judgment for the tenderers to make. In non-competitive contracts the level of profits is negotiated in accordance with the Government Profit Formula, on a company-by-company basis.