Key Facts

• New Clause 9 allows suppliers to seek suspension of debarment decisions through court proceedings.
• New Clause 10 permits the Minister for the Cabinet Office to make closed material applications in specific debarment cases.
• New Clause 12 enables similar closed material procedures under Part 9 of the Bill.
• The new clause would apply when contracting authorities are considering outsourcing services currently delivered in-house or renewing contracts.
• Contracting authorities must demonstrate the benefits and impacts of outsourcing against criteria set by the Secretary of State.
• The clause requires monitoring the performance of outsourced services against the public interest test.
• Outsourcing has led to erosion of staff pay and working conditions.
• A two-tier workforce is created with directly employed and contractor staff facing different terms and conditions.
• New clause would require a pre-procurement test for outsourcing services, assessing various criteria including service quality, value for money, local economy impact, public accountability, employment conditions, climate change targets, and equalities policies.
• The Government’s commercial function reviewed what is outsourced, why, and how after Carillion's collapse.
• The sourcing playbook supports a range of delivery models including in-house, outsourcing, and grant making.
• New Clause 3 would require public interest tests for outsourcing or continuing to outsource services.
• New Clause 5 would mandate carbon reduction plans from suppliers bidding on contracts over £5 million annually.
• New clause 5 would require contracting authorities to obtain carbon reduction plans from suppliers for contracts above £5 million.
• In 2021, the Government implemented a procurement policy requiring suppliers to provide carbon reduction plans for major contracts.
• The Bill aims to reduce regulatory burdens and support SMEs in winning government contracts.
• New clause would disapply section 31(2A) of the Senior Courts Act 1981.
• The clause aims to provide relief when lobbying by MPs, peers, or senior civil servants results in unequal treatment during procurement processes.
• Section 31(2A) prohibits courts from granting relief where it is highly likely that the conduct complained of did not make a significant difference to the contracting authority’s decision.
• By the end of 2023, the Secretary of State for Defence must conduct a review of Fleet Solid Support Ships procurement.
• The review will consider UK build work amount, number of jobs and SMEs involved, UK content guarantees, steel targets, social value, and project timelines.
• Navantia UK is mentioned as a contracting entity.
• A report on the findings must be published by Parliament by the end of 2023.
• The £1.6 billion contract for fleet solid support ships was awarded to Navantia UK in November 2022.
• At least 40% of the value of the work, about £640 million, will go abroad.
• Team UK’s bid would have generated more than 6,000 jobs and supported a full onshore build of the ships.
• Navantia UK was registered only in May with no trading history and directors based in Spain.
• Only 23% of the Ministry of Defence procurement spend went to SMEs in 2020-21.
• GMB estimates that £285 million would have been returned to taxpayers if the contract were awarded to Team UK.
• The MOD has 42 out of 45 projects not on time or on budget.
• The new clause mandates a review of the fleet solid support ships (FSS) programme and requires findings to be published by the end of the year.
• Monitoring is part of the MOD’s approach through regular governance forums like the project delivery board and recapitalisation and social value committee.
• The contract will bring hundreds of jobs to the UK, with most manufacturing activities taking place in UK shipyards in Belfast and Appledore.
• The Labour party’s dossier found that £15 billion has been wasted since 2010, with £5 billion wasted under the current Defence Secretary.
• Examples of waste include £595 million written off from the Warrior programme and £64 million due to administrative errors.
• Ajax project delays cost an extra £1 billion or more, now six years behind schedule.
• The National Audit Office (NAO) conducts yearly audits on the defence equipment plan.
• Independent scrutiny of defence programmes is undertaken by the Infrastructure and Projects Authority.
• The Government’s defence and security industrial strategy was published in March 2021.
• The proposal will happen within the lifetime of this Government.
• The Government are committed to delivering on it and learning from experiences abroad.
• The Committee divided: Ayes 5, Noes 7.
• Last year's nationally representative survey by Women’s Aid showed that 14% of the population and 33% of women prioritized tackling VAWG as a top issue.
• In 2020-21, over 62% of initial referrals to refuges were turned away.
• As of 2022, there is a 24% average shortfall in refuge spaces across England.
• New clause 18 would enable public authorities to choose not to buy goods or services from countries based on their human rights record.
• Public authorities cannot single out individual nations but must apply the policy consistently.
• The Secretary of State is required to publish guidance within six months of the Act's passage.
• New clause 18 would enable public authorities to choose not to buy goods or services from countries based on their human rights records.
• The clause aims to prevent the singling out of individual nations but could still result in excluding suppliers from entire nations without considering individual supplier involvement.
• Schedules 6 and 7 of the Bill already contain exclusion grounds targeting serious risks, including modern slavery and human trafficking.
• David Mundell acknowledges Ms Blackman's earlier thank you on Thursday 9th.
• The Minister thanks Mr Efford for chairing the committee.
• The Procurement Bill is reported as amended.