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Aerospace Industry: Contracts

Question for Ministry of Defence

UIN 37952, tabled on 20 April 2020

To ask the Secretary of State for Defence, what steps his Department is taking to ensure that payments made to companies that have aerospace contracts with that Department are timely.

Answered on

24 April 2020

The Ministry of Defence (MOD) is alert to the financial challenges that the Covid-19 outbreak is placing on all our suppliers, including those in the aerospace industry. In line with our usual payment policies, we are ensuring that outstanding invoices are paid promptly and are also encouraging primes and mid-tier suppliers to pay invoices as quickly as possible to their sub-tiers.

In addition, the MOD is enacting the Government Procurement Policy Note 02/20 published in March 2020, which sets out information and guidance for public bodies on paying suppliers to ensure service continuity during and after the Covid-19 outbreak. That includes ensuring that suppliers at risk will continue to be paid as normal and consideration of interim payments will be made where appropriate.