Procurement

Ministry of Defence written question – answered on 11th March 2015.

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Photo of Menzies Campbell Menzies Campbell Liberal Democrat, North East Fife

To ask the Secretary of State for Defence, what procedures his Department has to ensure value for money on purchases; if he will estimate what savings have been realised by use of such procedures in the last 12 months; and if he will make statement.

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

The Ministry of Defence (MOD) is focused on ensuring best value for money in its procurement activity and, wherever possible, we seek to fulfil our requirements through open competition. For those instances where we must procure from a single source, the new Defence Reform Act 2014 and the Single Service Contract Regulations 2014 will help the MOD secure improved value for money through legally enforceable pricing and transparency rules. We have also established a Single Source Regulations Office, which will ensure that good value for money is obtained in Government expenditure on qualifying defence contracts and that contractors are paid a fair and reasonable price. The MOD does not hold information on savings realised through value for money procedures, but evaluates products and processes systematically to provide confidence about suitability, effectiveness, prudence, quality and good value. In a drive to continually reduce costs and deliver value for money the MOD has secured five year savings of £1.006 billion.

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