Defence Evaluation and Research Agency (Hansard, 23 July 2002)

§ Gillian Merron
To ask the Secretary of State for Defence if he will make a statement on the progress of the public-private partnership for the Defence Evaluation and Research Agency. [72885]

§ Dr. Moonie
On 1 July 2001 the Defence Evaluation and Research Agency was successfully divided into QinetiQ plc, currently a wholly Government-owned company, and the Defence Science and Technology Laboratory, which remains part of the Ministry of Defence.
On 6 March 2002, I informed the House that we had decided to sell a substantial stake in QinetiQ to a strategic partner who would help to develop the company in preparation for a future flotation on the stockmarket. Our decision followed a detailed analysis of market conditions, which led us to conclude that this approach offered best value for the taxpayer, and would meet our objectives for a successful public private partnership.
Immediately following this announcement we initiated an open competition and carried out a pre-qualification process to identify potential partners. Almost 40 expressions of interest were received, and at the end of April 2002 12 organisations were selected to receive an Information Memorandum describing the company. Following an evaluation in late May 2002 of indicative offers from bidders, several companies were then
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§ Dr. Moonie
Key Performance Indicators have been set for the Chief Executive of the Defence Aviation Repair Agency (DARA) for financial year 2002–03 as follows:
provided with access to more detailed information on QinetiQ and invited to submit final binding bids. In order to maximise competition we do not propose to reveal how many companies were selected to participate in this stage, or their identities.
We have received a number of responses within the last few days from the shortlisted bidders, and these are now being comprehensively evaluated by officials and specialist advisers. The results of the selection process are not yet available but we remain on track to identify the preferred bidder within the next few weeks, and complete the initial sale later this year.