Procurement

Defence written question – answered on 15th January 2014.

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Photo of Chris Leslie Chris Leslie Shadow Chief Secretary to the Treasury

To ask the Secretary of State for Defence what proportion of his Department's contracts have been let to companies with (a) one to five, (b) six to 49, (c) 50 to 250 and (d) more than 250 staff.

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

The Ministry of Defence (MOD) does not distinguish between suppliers to such an extent and only records whether a supplier meets the European Union definition of a Small and Medium-sized Enterprise (SME), i.e. those businesses with fewer than 250 employees and with a turnover of less than €50 million or balance sheet less than €43 million. No further breakdown is available as such an analysis would not directly support policy making or operations.

Information on the proportion of contracts the MOD has placed with SMEs is available in the MOD Official Statistics publication 'MOD Contracting with Small and Medium-sized Enterprises' which is available at the following link:

http://www.dasa.mod.uk/publications/finance-and-economics/MOD-contracting-with-small-and-medium-sized-enterprises/financial-year-2012-13/2012-13.pdf

Table 1 of this publication shows that in financial years 2010-11, 2011-12 and 2012-13 the proportion by volume of all new contracts placed by the MOD with SMEs was 36%, 37% and 36% respectively.

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