Defence: Procurement

(asked on 3rd September 2020) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what requirement there is for companies funded by his Department to pay financial penalties if they under-estimate the cost of projects awarded to them and fail a National Audit Office inspection.


Answered by
Jeremy Quin Portrait
Jeremy Quin
Minister of State (Ministry of Defence)
This question was answered on 11th September 2020

The National Audit Office (NAO) audits the Ministry of Defence (MOD) financial accounts and conducts investigations on MOD programmes and activities. It does not inspect or audit defence industry companies and, as such, companies do not fail NAO audit inspections.

The MOD regularly scrutinises the performance of its suppliers, holding them to account for performance against the terms and conditions of their contracts. This includes monitoring costs and progress against delivery milestones and taking action as appropriate in the event of an over or underrun. As a general principle, the MOD would seek to resolve issues of under or overestimation of cost through the terms and conditions of the contract, rather than through financial penalties.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
Recent Documents related to Defence: Procurement

1. Bill 414 2017-19, as introduced (PDF)
02/07/2019 - Bill Documents

Found: beginning of financial year 7Interpretation 8Short title ScheduleŠAppropriations for financial year 2019-20

2. Bill 095 2019-21 (as introduced) (PDF)
02/03/2020 - Bill Documents

Found: title ScheduleŠSupplementary appropriations for financial year 2019-20 Bill 95 58/1Supply and Appropriation

3. Bill 095 2019-21 (as introduced)
02/03/2020 - Bill Documents

Found: title ScheduleŠSupplementary appropriations for financial year 2019-20 Bill 95 58/1Supply and Appropriation

4. Bill 241 2017-19 (as introduced) (PDF, 1MB)
02/07/2018 - Bill Documents

Found: beginning of financial year 7Interpretation 8Short title ScheduleŠAppropriations for financial year 2018-19

5. Bill 343 2017-19 (as introduced) (PDF)
26/02/2019 - Bill Documents

Found: appropriations for financial year 2018-19 Schedule 2ŠAppropriation of excesses for financial year 2017-18 Bill

Latest Documents
Recent Speeches related to Defence: Procurement

1. Carillion
15/01/2018 - Commons Chamber

1: members of the public and particularly employees of companies in the Carillion group will have concerns at this - Speech Link
2: After all, Carillion provides 450 separate taxpayer-funded contracts to the public, with 20,000 people working - Speech Link

2. Carillion and Public Sector Outsourcing
24/01/2018 - Commons Chamber

1: to study the letter will find the names of six companies that are going to take over the public sector - Speech Link
2: I will give way to the hon. Gentleman, but I ask him to answer the following question. Does he believe - Speech Link
3: my question should be about, but I was going to ask him whether it is his policy to take all the contracts - Speech Link

3. Garden Bridge: Funding
15/03/2019 - Commons Chamber

1: million of that comes from the coffers of the Department for Transport. I am pleased to have a Transport - Speech Link
2: money has been wasted on other infrastructure projects, well after the time that it was obvious to anyone - Speech Link
3: the project was scandalously mismanaged and would cost the taxpayer £43 million for nothing.This - Speech Link

4. Carillion
12/07/2018 - Commons Chamber

1: voluntarily left what remains of the business. Projects have been mothballed and suppliers have faced - Speech Link
2: to refuse to demonstrate any culpability for the state the company was in. They have denied that our report - Speech Link
3: decisions about whether to plug the pensions deficit or pay dividends to shareholders. Those are the people who - Speech Link

5. Oral Answers to Questions
07/12/2020 - Commons Chamber

1: institutionalised relation with the EU to do so. The defence settlement reaffirms our position as Europe’s leading - Speech Link
2: forces in the future. What steps has the Secretary of State taken to ensure that that is possible through - Speech Link
3: always said as Security Minister, and as Defence Secretary I mean it now. There has been no sign among - Speech Link

Latest Speeches
Recent Questions related to Defence: Procurement
1. International Military Services: National Audit Office
asked by: Tulip Siddiq
08/01/2019
... if he will publish all the information his Department holds on whether International Military Services Ltd was included in the National Audit Office’s value for money work on defence sales in the 1980s and early 1990s and in any associated work that may have been unpublished.

2. National Audit Office
asked by: Andrew Turner
30/10/2014
... if the Commission will take steps to reduce expenditure by the National Audit Office.

3. Office for National Statistics: Equal Pay
asked by: Philip Davies
26/01/2017
... what the (a) mean and (b) median gender pay gap is for (i) part-time and (ii) full-time staff at the Office for National Statistics.

Latest Questions