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Contingent Liability

Volume 629: debated on Monday 9 October 2017

I have today laid before Parliament a departmental minute describing a Contingent Liability (CL) in the region of £150 million associated with Programme HADES.

Programme HADES will provide the continued delivery of motor transport, supply, aircraft and ground engineering, and airfield support services. HADES will replace expiring unit-specific multi-activity contracts at a number of units from 1 April 2018. The programme will ensure continuity of service provision at minimum cost and is essential to support strategic defence and security review 2015 outcomes.

The maximum CL is in the region of £150 million, which ensured healthy competition from prospective tenderers. There is also a further CL of £643,000 associated with the indemnity given to contractors for terminal redundancy liability associated with ex-authority staff.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before the House, a Member signifies an objection by giving notice of a parliamentary question or a motion relating to the minute, or by otherwise raising the matter in the House, final approval will be withheld pending an examination of the objection.