AWACS: Procurement

Ministry of Defence written question – answered on 17th June 2019.

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Photo of Lord Moonie Lord Moonie Non-affiliated

To ask Her Majesty's Government whether the procurement of Boeing E-7 Wedgetail aircraft will be subject to oversight by the Single Source Regulations Office; and if so, whether Boeing has agreed to the baseline profit rate.

Photo of Earl Howe Earl Howe The Minister of State, Ministry of Defence, Deputy Leader of the House of Lords

The prime contract with Boeing Defence UK for the E-7 Wedgetail is assessed as a qualifying defence contract (QDC) in accordance with the Single Source Contract Regulations (SSCR) and is subject to oversight by the Single Source Regulations Office as any QDC would be. The profit rate for the contract has been agreed in accordance with the SSCR six-step calculation process which begins with the baseline profit rate applicable at the time of contract placement.

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