The UK Government has said it already has strengthened powers to deal with underperforming defence contractors following the introduction of the Procurement Act 2023, according to a written parliamentary response.
Responding to a question from Labour peer Lord Spellar, Defence Minister Lord Coaker said the Act provides mechanisms similar in intent to measures highlighted in a recent United States executive order on defence contracting.
Lord Spellar had asked whether the Government had assessed the US Executive Order “Prioritizing the warfighter in defense contracting”, issued on 7 January, and whether similar action should be taken in the UK regarding corporate practices such as stock buybacks or excessive distributions.
Coaker said the executive order outlines actions that may be taken against contractors considered to be underperforming by the US Government. “The Executive Order highlighted by the noble Lord outlines potential actions placed upon contractors deemed to be underperforming by the United States Government.”
He said the UK has introduced comparable oversight tools through recent procurement reforms. “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.”
According to the minister, the Act includes expanded powers allowing the Government to manage persistent supplier underperformance. “The Act introduced commercial levers to manage systemic underperformance via an expanded exclusions regime.”
This enables authorities to consider a company’s past conduct, including poor performance or breaches of contract, when assessing eligibility for future work. “This regime ensures that a suppliers’ historic conduct, including poor performance, breaches of contract or serious misconduct, can be assessed and addressed appropriately.”
Coaker said discretionary exclusion grounds allow contracting authorities to take proportionate action where suppliers demonstrate persistent problems. In more serious cases, a minister can place a contractor on a formal debarment list following investigation, preventing them from participating in future competitions, according to the minister.
He added that the system is intended to create a consistent framework across government procurement. “This creates a transparent, consistent approach to managing poor performance risk across MOD and wider Government.”
Lots of words, double talk, state normal.
What should be happening is looking at who benefits from MoD contracts (follow the money) as a good % of the proffits from these contracts ends up funding foriegn economy’s and in the pockets of people who do not give too hoots about the UK’s armed forces.
Look at who owns our private contractors like Landmark, Serco, Janes and you will see that most of the shear holders are American so instead of the profits being spent in the UK and being recycled back into the UK economy or as the Americans insist from their defence contractors spent of defence infrastructure they are being spent in supporting the 401K’s of American retirees.
All defence contractors should be limited to 10 to 15% profit with at least 5% of that profit being spent on UK defence infrastructure.
Why is the UK tax payer paying for the American peoples retirement and not the UKs people retirement ?
Why is the government allowing defence contractors to move their profits overseas and not reinvesting in the UK
Who in the CS and the political classes is happy with this arrangement and why.
😂
How about a body to monitor underperformed government bodies?
I would say defence of tne realm is arguably the most important job of any government..who shall we investigate then for the travesty that is the current stance on defence right now and in the past.
.10…15…20.
Years.
The telegraph is sabre rattling at the moment. Our rivals the French have sent a carrier, 4 escorts and a sub to the current hot spot.
They rightly point out we have a massive 90 odd typhoons for the RAF to play with, no AWACS and 40 odd ( not very well equipped) ( choice of ordinance) 5th gen fighters that the RAF and RN fight over.
A brace of 57mm radar equipped Rivers with a container of camm on the back would hold the fort for Cyprus and considering what was paid for them…
AA