Contract Prices

Defence written question – answered on 17th March 2005.

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Photo of Rachel Squire Rachel Squire Labour, Dunfermline West

To ask the Secretary of State for Defence on what grounds his Department determines whether a contracted price is achievable without subsidy and without additional payments from the Department.

Photo of Adam Ingram Adam Ingram Minister of State (Armed Forces), Ministry of Defence

holding answer 8 March 2005

The Department does not subsidise defence contractors or pay for work that is not covered by a contract. Decisions on contract prices and amendments to contract prices are based on long term Value for Money and take account of factors such as equipment performance, timeliness of delivery, risks and their management, sustainability and support of equipment and, where appropriate, wider factors described in the Defence Industrial Policy, which is in Defence Policy Paper No 5, published in October 2002.

Does this answer the above question?

Yes4 people think so

No1 person thinks not

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