Oral Answers to Questions

Gordon Henderson Excerpts

Monday 26th November 2012 Commons Chamber

[Mr Francois]

I take a close interest in this matter. I spent the best part of a day at Army HQ last week going in detail through proposals to increase the size of the reserve forces. We are considering the issue extremely closely. The Green Paper asks employers and others whether we might need primary legislation to change some of the terms, but as the consultation has only just begun it is perhaps a little rich of the hon. Gentleman to ask me what the answer is.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

6. What steps he is taking to enable small and medium-sized enterprises to bid for procurement contracts with his Department.

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

As set out in the White Paper published earlier this year, increasing opportunities for SMEs in defence procurement is an important strand in our open procurement policy. We have set up an SME forum, which I chair, precisely to identify barriers to participation. Specific measures include standardising and simplifying procurement systems, promoting opportunities for SMEs through e-procurement mechanisms and marketplace events, and working with our prime contractors to boost opportunities for smaller businesses in the supply chain.

[Gordon Henderson]

I welcome that statement. I was a senior contracts officer with GEC Marconi Avionics, so I would like to think I know something about the complexity of the MOD procurement process. Large companies such as BAE Systems have access to teams of expert contracts officers who can plough through the bid documents. Sadly, SMEs often do not have that luxury, which puts them at a disadvantage. Will my hon. Friend consider how the bid process can be made less complicated and more user-friendly for SMEs?

[Mr Dunne]

I am grateful to my hon. Friend for demonstrating his expertise and bringing it to bear on our complicated procurement processes. We recognise that smaller companies, unlike the larger ones, do not have the resources to focus on putting bid proposals together, which is why we are introducing a number of measures to make that easier for them. They include publishing on web portals all tenders over £10,000, streamlining contract processes and speeding up invoice and bill payment systems, which will make it more convenient for SMEs to receive timely payments. We are also considering requests for interim payments on procurement.