Defence: Procurement

Defence written question – answered at on 6 November 2012.

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Photo of Angus Robertson Angus Robertson Shadow SNP Spokesperson (Defence), Shadow SNP Spokesperson (Foreign and Commonwealth Office), Shadow SNP Westminster Group Leader

To ask the Secretary of State for Defence how many projects being delivered by (a) Babcock, (b) Boeing, (c) Cobham, (d) European Aeronautic Defence and Space Company, (e) Finmeccanica, (f) General Dynamics, (g) Kellogg-Brown-Root, (h) Lockheed Martin, (i) Marshall Aerospace, (j) Northrup Grumman, (k) Rolls-Royce, (l) Thales and (m) Ultra Electronics for his Department are overrunning in (i) time and (ii) budget; and where each project is located.

Photo of Peter Luff Peter Luff Conservative, Mid Worcestershire

The information will take time to collate. I will write to the hon. Member as soon as it is available.

Substantive answer from Philip Dunne to Angus Robertson:

My predecessor undertook to write to you in his answer of 10 July 2012 (Official Report, column 199W) regarding your parliamentary question about Defence projects.

The following table demonstrates the number of procurement and support projects managed by Defence Equipment and Support involving the contractors you asked about where the projects are presently considered to be overrunning regarding time or budget.

Performance against contract can be affected by a number of reasons not all of which are in the contractor's control. For the purpose of answering this question these contracts have been limited to those with a value of £1 million or more, and where the Ministry of Defence has let a contract directly to the named company as a Prime Contractor. The locations of where the contractors are carrying out the work are also set out in the table.

Table 1: Companies overrunning in time and budget
Company No. of contracts over-running in time Location No. of contracts over budget Location
Babcock 1 HMNB Devonport 0
Boeing 1 Gosport and Philadelphia UK 0
Cobham 2 Durham and Bournemouth 2 Durham and Bournemouth
European Aeronautic Defence and Space Company 0 0
Finmeccanica 2 Edinburgh and Basildon 1 Luton
General Dynamics 0 0
Kellogg-Brown-Root 1 Leatherhead 0
Lockheed Martin 2 Farnborough and Ampthill 3 Orlando, USA, Farnborough and Ampthill
Marshall Aerospace 0 0
Northrup Grumman 1 Coventry 0
Rolls-Royce 2 Filton and Winsford 1 Cambridge
Thales 4 Belfast and Crawley 1 Crawley
Ultra Electronics 2 Greenford and Loud water 1 Greenford

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