Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what his Department's policy is on the awarding of public procurement contracts to companies that have never declared a profit.

The driving principle behind public procurement policy is to award contracts on the basis of value for money, which means the optimum combination of cost and quality over the lifetime of the project, not just price alone. The best way to test for and to demonstrate this principle is via an open competition, as is required in most cases by public procurement legislation.

It is open to organisations to consider and bid for contract opportunities where appropriate. This Government is committed to ensuring procurement opportunities are accessible to a range of organisations, and in supporting start-ups, small businesses and Voluntary, Community and Social Enterprises to participate in government procurement.