Defence Equipment and Support Debate

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Department: Ministry of Defence

Defence Equipment and Support

Andrew Murrison Excerpts
Tuesday 17th July 2012

(12 years, 5 months ago)

Commons Chamber
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Nick Harvey Portrait Nick Harvey
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The hon. Lady makes a good point—that is why I was at pains to spell out at the outset that the process has some considerable way to go. Only when the work on value for money is completed will a decision be taken on whether we are going ahead in principle. At that stage, we will work the model up in detail and look for a competition with private sector partners. At the end of all of that, there will be a final testing, which must satisfy the Treasury, among others. That will be the point at which a decision to go forward will be taken. There is a long route to go.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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Does the Minister agree that a key indicator of the success of either of the two models that he has described will be the attitude towards small and medium-sized enterprises in defence tendering in instruments such as pre-qualification questionnaires, which are generally unhelpful to SMEs?

Nick Harvey Portrait Nick Harvey
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My hon. Friend makes good points on the difficulties that SMEs believe they currently have in some of our big procurement projects. Since the move to the MOD contracting directly with prime contractors, which then handle subsidiary contracting, it would be true to say that the MOD has rather lost the skill set of managing SMEs. By the time the reforms are complete, I hope that a GOCO of the sort I have described will reinvest in those skill sets and that we will be better able to manage SMEs directly.