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UK minister: defence competition contract 'not always good thing'
By Jon Grevatt
23 October 2009
Quentin Davies, the UK Minister for Defence Equipment and Support, has advocated a principle of reduced protectionism as a way of improving the efficiency of defence procurement and saving costs.
Davies' comments came at an international defence acquisition conference in Seoul on 22 October, which was organised by the South Korean government's Defence Acquisition Programme Administration (DAPA).
He argued during the event that governments should adopt fixed-price contracts as opposed to cost-plus-award-fee contracts, where contractors are offered an incentive award amount based on performance. Fixed-priced contracts, said Davies, will encourage defence contractors to move closer to customers in ensuring programmes are completed on schedule and on budget.
Competition in defence deals was "not always a good thing", the minister stressed. "Sometimes it doesn't work," he added. "Sometimes you want to buy one particular product and sometimes you want to buy that product in a particular place."
Davies also told delegates that the UK government was determined to look for value for money from "wherever it maybe" given increasing economic pressures.