HC Deb 04 February 2000 vol 343 c766W
Mr. Pickles

To ask the Secretary of State for Trade and Industry if the credit rating of companies seeking to tender for services provided by his Department is checked before the contract is awarded. [107745]

Dr. Howells

Procedure in DTI, as recommended in the Department's Procurement Manual and based on HM Treasury procurement guidance, is that financial appraisal of potential suppliers is undertaken where (a) contracts have a value of up to £10,000 and are critical, novel or contentious; (b) contracts have a value of £10,000 or more. Qualified accountants are required to report on a company's published accounts where contract values exceed £95,000.

Mr. Pickles

To ask the Secretary of State for Trade and Industry how often the credit rating of companies supplying services to his Department is checked. [107750]

Dr. Howells

Procedure in DTI, as recommended in the Department's Procurement Manual and based on HM Treasury procurement guidance, is that financial appraisal of suppliers is undertaken pre-award where contract values are £10,000 or more, or are otherwise critical, novel or contentious. Where contract duration is more than one year, checks on financial viability may be undertaken at regular intervals.