Question to the Ministry of Defence:

To ask the Secretary of State for Defence, for what reason the contract to build small craft to support the Royal Navy was awarded to a foreign shipbuilder; and what British-based firms competing for that contract had their bids rejected.

The contract in question is a sub-contract awarded by Serco to procure 24 new vessels for the Royal Navy. This sub-contract is part of the Defence Marine Services In-Port Services contract between the Ministry of Defence and Serco, and accounts for less than 25% of the total contract value. The In-Port Services contract was sourced via a competitive tender process; however, Serco was the only tenderer to submit a bid. In accordance with the legislation in force at the time, Serco was free to select its sub-contractors, and the Ministry of Defence was not permitted under this legislation to require Serco to discriminate on grounds of nationality.