Defence: Procurement

Defence written question – answered on 13th September 2013.

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Photo of Russell Brown Russell Brown Shadow Minister (Defence)

To ask the Secretary of State for Defence how much his Department has spent with each company which has indicated an interest in the Government-owned, Contractor-operated entity, in each year since 2008.

Photo of Philip Dunne Philip Dunne The Parliamentary Under-Secretary of State for Defence

holding answer 9 September 2013

Two consortia are competing to run a potential Government Owned Contractor Operated entity for the future management and operation of Defence Equipment and Support. The companies comprising each consortium are:

CH2M Hill, Atkins and Serco; and

Bechtel with PwC and PA Consulting.

Since January 2011, as part of this Government's commitment to increase transparency, central Government Departments have been required to publish information on the contracts they award on the Contracts Finder. This information is available online at

Expenditure on Ministry of Defence (MOD) contracts with these companies in each financial year between 2008-09 and 2010-11 is shown in the following table:

  Expenditure (£ million)
Financial year CH2M Hill Atkins Serco Bechtel PwC PA Consulting
2008-09 28.7 575.9 24.3 4.8 7.9
2009-10 24.7 549.0 6.8 3.8 7.8
2010-11 18.5 539.8 0.4 1.9 6.5

These figures include expenditure by MOD Trading Funds, but do not include payments which may have been made on behalf of other Government Departments, by the MOD's Executive non-departmental public bodies that lie outside the MOD's accounting boundary, locally by the Department through third parties such as prime contractors or other Government Departments and in relation to collaborative projects where the payments are made through international procurement agencies or overseas Governments. Payments made by Government Procurement Card are also not included.

The Invitation to Negotiate contains clear statements to bidders of the divestments required to avoid conflicts of interest.

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