Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what his Department's policy is on awarding contracts to contractors whose tender is more expensive than the lowest quote.

The Ministry of Defence (MOD) assesses all tenders for a requirement against a range of relevant criteria to ensure that the Armed Forces get the best capability at the best value for money for the taxpayer.

Contracts are only awarded following a detailed tender assessment process and, while criteria for each procurement will vary depending on the requirements, MOD commercial officers must be satisfied that these are met before a contract is awarded.

All tender documentation will include information on how the tenders will be evaluated and scored and the evaluation criteria will vary according to the requirement. One evaluation method is the lowest price method where the lowest priced tender that is technically and commercially compliant is deemed the winner. This is typically used in simple, routine procurements. A second evaluation method is the most economically advantageous tender method. Price is just one element of the overall value for money assessment and there may be occasions where a contractor who has submitted a more expensive tender is awarded a contract, for example, where the company offers a more effective capability. This will be assessed in accordance with the evaluation criteria detailed within the tender documentation