Defence: Procurement

Defence written question – answered on 8th January 2014.

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Photo of Mike Hancock Mike Hancock Independent, Portsmouth South

To ask the Secretary of State for Defence what contingency and risk mitigation plan is in place in respect of the £7 billion for the completion of the aircraft carrier, the OPVs and the Type 26 destroyers; and what the level of contingency is.

Photo of Andrew Murrison Andrew Murrison The Parliamentary Under-Secretary of State for Defence

As set out in the Ministry of Defence's (MOD) annual Equipment Plan, funding for MOD procurement projects routinely includes an element of risk contingency. This contingency is commensurate with the level of risk exposure of each project and will vary as risks are mitigated and new ones identified. The precise level of risk contingency allocated for each project is considered to be commercially sensitive as it would prejudice any ongoing or future negotiations. I am therefore withholding this information.

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