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Thursday, January 27, 2011

MoD to review defence procurement

RAF Tornado F3The Ministry of Defence on Wednesday launched a review of its procurement processes that could affect up to 40 per cent – or £9bn worth – of the contracts it signs each year, in the latest move by the government to rein in defence spending.

However, there remained a considerable lack of clarity as to the ultimate fallout from the review, or whether it might recommend modifications to existing contracts with companies such as BAE or Rolls-Royce.

The review will be chaired by Lord Currie of Marylebone, and focus on contracts where only one defence contractor is invited to tender for business.

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