Skip to main content

Departmental Procurement

Volume 503: debated on Thursday 7 January 2010

To ask the Minister of State, Department for Business, Innovation and Skills whether there has been any nugatory cost to (a) his Department and its predecessors and (b) its agencies arising from tendered procurement in circumstances where the tender process has been cancelled prior to the award of the contract in the last five years. (303711)

The Department for Business, Innovation and Skills is unable to provide nugatory costs relating to cancelled tenders because such costs are not recorded centrally and could be obtained only at disproportionate cost.

I have approached the chief executives of the Insolvency Service, Companies House, the National Measurement Office and the Intellectual Property Office and they will respond to hon. Member directly.

Letter from Stephen Speed:

The Minister of State, for the Department of Business, Innovation and Skills (BIS) has asked me to reply to you directly on behalf of the Insolvency Service in respect of your question (2009/289) whether there has been any nugatory cost to (a) his Department and its predecessors and (b) its agencies arising from tendered procurement in circumstances where the tender process has been cancelled prior to the award of the contract in the last five years.

The Insolvency Service has not cancelled any tenders prior to award of contract in the last five years.

Letter from Peter Mason, dated 3 December 2009:

I am responding in respect of the National Measurement Office to your Parliamentary Question tabled on 30 November 2009, to the Minister of State, Department for Business, Innovation and Skills.

There have been no nugatory costs to the Agency in the last five years relating to tendered procurement where the tender process has been cancelled prior to the award of the contract.

Letter from Sean Dennehey, dated 4 December 2009:

I am responding in respect of the Intellectual Property Office to your Parliamentary Question tabled 30 November 2009, to the Minister of State, Department for Business, Innovation and Skills.

There has been no nugatory direct cost to the Intellectual Property Office arising from procurement where the tender process has been cancelled prior to the award of the contract in the last five years. However, there was in 2006/07 and 2007/08 nugatory staff effort estimated at approximately £100 each year.

Letter from Gareth Jones:

I am replying on behalf of Companies House to your Parliamentary Question tabled 30 November 2009, UIN 303711, to the Minister of State for Business, Innovation and Skills.

In the last five years Companies House has cancelled one procurement tender exercise prior to award of contract. There were no costs paid to the invited bidders as a result of the cancellation. Internal staff costs would have been incurred in the preparation of the tender process, but it is not possible to quantify them as they were not part of a formal project and therefore not recorded. However, we would not term these particular costs as being nugatory as a lot of the output generated has had continued value as reference material for future procurements.