§ Mr. MaplesTo ask the Secretary of State for Defence what assistance was given by the Defence Evaluation and Research Agency to Somchem/Denel in preparing its tender for the modular charge system contract recently awarded to them. [73390]
§ Mr. Spellar[holding answer 26 February 1999] No assistance was given by the Defence Evaluation and Research Agency, DERA, to Somchem/Denel in preparing its tender for the Modular Charge System sub-contract. DERA's only role in this procurement was to work, under tasking form the MOD, to provide independent technical advice on the submissions from each company participating in the competition, which were provided through the prime contractor, and to organise the associated firing trials.
§ Mr. MaplesTo ask the Secretary of State for Defence in calculating the savings to be achieved from awarding660W the modular charge system contract to Somchem/Denel what account he took of (a) possible qualification costs to be incurred in the future by other suppliers of propellants, (b) the cost of the loss of the Bishopton factory as a competitor for the supply of propellants, (c) the cost of extra stocks of propellant needed to offset the risks to supply associated with a foreign competitor and (d) the cost of any failure to supply by Denel. [73392]
§ Mr. Spellar[holding answer 26 February 1999] The Somchem charge was a clear winner of the Modular Charge System sub-contract competition. The implications of this outcome were considered very carefully, including the cost of qualifying alternative sources of propellant, as necessary, should Royal Ordnance close the site at Bishopton. We are confident in the security of supply from Somchem, and do not consider that additional propellant stocks are required. The contracting arrangements will, as is normal for MOD contracts, protect our financial position in the event of any default by the contractor. There are sufficient alternative suppliers of propellant in friendly and reliable countries overseas to facilitate competition and we do not consider, therefore, that prices will necessarily rise in future if Bishopton closes.