Caroline Flint – 2016 Parliamentary Question to the Ministry of Defence

The below Parliamentary question was asked by Caroline Flint on 2016-02-22.

To ask the Secretary of State for Defence, what proportion of his Department’s invoices for goods and services supplied by (a) private companies and (b) small and medium-sized enterprises (SMEs) are completed on time; and what proportion of the (i) number and (ii) value of contracts between his Department and private companies are held by SMEs.

Mr Philip Dunne

The Ministry of Defence (MOD) aims to pay 80% of its invoices within five working days and payment performance is published on gov.uk at the following link: https://www.gov.uk/government/organisations/ministry-of-defence/about/procurement#ministry-of-defence-payment-performance. This shows that during the first three quarters of 2015-16, the MOD paid around 97% of its invoices within five days and 99.9% within 30 days. A comprehensive breakdown of the proportion of invoice payments made to small and medium-sized enterprises (SMEs) and to private companies is not held.

Information on MOD contracting with SMEs is also published online at: https://www.gov.uk/government/statistics/mod-industry-trade-and-contracts-2015. This shows that in 2014-15, the MOD placed around 440 new contracts directly with SMEs, with a collective value of around £320 million.