Question to the Ministry of Defence:

To ask Her Majesty’s Government what commercial risk assessments are undertaken by (1) the Ministry of Defence, and (2) Defence Equipment and Support, into the financial stability of (a) UK-based suppliers of equipment, and (b) overseas suppliers of equipment.

The Ministry of Defence (MOD) routinely carries out financial health checks on all potential contractors prior to contract award to ensure they have sufficient financial resources to deliver the contract. These checks, which include a review of a company's audited accounts and turnover, are conducted in accordance with the Public Contracts Regulations 2015 and the Defence and Security Public Contracts Regulations 2011.

This process is reiterated in all competitive and single source tender documentation issued to tenderers prior to any contract award. Where justified, the MOD can exclude potential suppliers who pose an unacceptable risk to public money.