Defence written question – answered on 30th March 2006.

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Photo of Sandra Gidley Sandra Gidley Shadow Minister, Health

To ask the Secretary of State for Defence what criteria he uses to decide whether potential contractors are a bad financial risk.

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

It is not the Ministry of Defence's practice to place a contract with a supplier if there are reasonable doubts about that supplier's ability to meet its contractual obligations.

The policy guidance currently available to MOD commercial officers when assessing a potential supplier's financial status is in the public domain and can be found on the MOD's Acquisition Management website at: under the Commercial Managers Toolkit (CMT)/Guidance/Topic Guidance/A-ZTopics(from drop down menu)/"Company Financial Status", particularly paragraphs 33 to 46 headed Financial Capability Assessment".

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