Question to the Ministry of Defence:

To ask the Secretary of State for Defence, when assessing capital adequacy for US-based contracts, whether the decision to advance payment is based upon an examination of the finances of the US-listed company or its UK subsidiary.

The Ministry of Defence (MOD) assesses the economic and financial standing of companies bidding for MOD work (including US listed companies and their UK based subsidiaries) to ensure they have sufficient financial stability to deliver any resulting contract and also monitors the financial health of its contractors throughout its contracts. These assessments are independent from, and not linked to, any decision to use any form of interim payment on any particular contract.