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Monday, September 16, 2013

MoD suppliers warn Government of risk to security of privatising budget agency

DS&EThe Ministry of Defence’s biggest suppliers have privately joined the growing chorus of disapproval at the Government’s plans to effectively privatise the £14bn budget agency that buys ships and tanks.

Two consortiums are vying to take over running the agency – a move that Defence Secretary Philip Hammond thinks will introduce the commercial nous to help Defence Equipment & Support (DE&S) purchase guns and ammunition at cheaper prices.

US engineering giants Bechtel and CH2M Hill lead these bid teams, which also include big British names like troubled outsourcing group Serco and accountant PricewaterhouseCoopers.

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