Question to the Ministry of Defence:

To ask His Majesty's Government what assessment they have made of the Executive Order “Prioritizing the warfighter in defense contracting”, published by the President of the United States of America on 7 January; and whether a similar decision in respect of stock buybacks and excessive corporate distributions would be appropriate for UK Defence procurement.

Answered by Lord Coaker - Minister of State (Ministry of Defence)

The Executive Order highlighted by the noble Lord outlines potential actions placed upon contractors deemed to be underperforming by the United States Government. Under the Procurement Act 2023, which came into force on February 24 2025, the UK Government has similarly strengthened its ability to take action against underperforming suppliers through a more centralized, transparent system.

Under the Procurement Act 2023 (the Act) the UK Government has strengthened its ability to deal with underperforming suppliers. The Act introduced commercial levers to manage systemic underperformance via an expanded exclusions regime. This regime ensures that a suppliers’ historic conduct, including poor performance, breaches of contract or serious misconduct, can be assessed and addressed appropriately. Discretionary exclusion grounds allow contracting authorities to take proportionate action where suppliers have demonstrated significant or persistent poor performance, including any self-cleaning demonstrated by the supplier. Where a supplier is an excluded or excludable supplier, the Ministry of Defence (MOD) must or may restrict their participation in future competitions, depending on the nature of the exclusion, and in the most serious cases a Minister of the Crown may place a supplier on the debarment list, following investigation. This creates a transparent, consistent approach to managing poor performance risk across MOD and wider Government.

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