Question to the Home Office:

To ask the Secretary of State for the Home Department, what due diligence processes her Department undertakes before awarding contracts valued above £10 million.

Where Home Office Commercial use Key Subcontractors to deliver critical services, controls are in place to test their financial health throughout the life of the contract and performance monitored through KPIs.

The Home Office Commercial Assurance Board provides independent assurance for all procurement and Contracts above £10m.

The Commercial Assurance Board undertakes an assessment and approval at key stages of the commercial lifecycle (Strategic Outline case, outline business case and full business case) before the Contract is awarded.

Assurance and assessment of commercial and legal risks, value for money, compliance with regulations and how Social Value will be delivered in the Contracts is completed ahead of Contract Award.

Home Office commercial undertake a robust financial assessment of all Bidders financial health and viability to deliver contracts as part of the financial evaluation in procurements over £50m and these principles apply to all procurements.

For high value and complex contracts, Bidders are requested to provide a competed FVRA (Financial Viability Risk Assessment) which includes profitability ratios, debt ratios, liquidity ratios and solvency ratios. If Bidders are unable to meet the required thresholds, then they are removed from the procurement process.

Other information required would only be available at a disproportionate cost.