Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
The Department said it intended to continue holding General Dynamics to the current firm-priced contract...
Conclusion
The Department said it intended to continue holding General Dynamics to the current firm-priced contract for delivery of 589 vehicles.49 Despite remaining in contractual dispute, the Department claimed that its relationship with General Dynamics was good and that both parties were working collaboratively. It was seeking to resolve the technical issues and recover the programme through existing commercial terms. We emphasised the importance of using appropriate commercial arrangements to incentivise delivery of the required capability.50
Government response summary AI-generated
The department states that it has a robust firm price contract of £5.5 billion that protects the taxpayer and includes mechanisms to incentivise contractor performance.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
5.2 The department has in place a robust firm price contract of £5.5 billion that protects the taxpayer from any increase in costs. The contract has a number of mechanisms to incentivise contractor performance to meet performance, cost and time requirements, including incentivised critical milestones, liquidated damages and default and dispute resolution processes. The department continues to protect its contractual and commercial rights under the contract with General Dynamics to deliver a value for money outcome.
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