MOD urged to look at local suppliers for infantry vehicles

FEARS are growing that UK companies will be excluded from one of the biggest equipment purchases by the British Army in years – continuing a trend for the Ministry of Defence to award huge contracts to foreign suppliers at the expense of the domestic arms industry.

MPS on the defence and public accounts committees have written to the Ministry of Defence demanding an explanation of how hundreds of eight-wheeled mechanised infantry vehicles (MIVS) will be acquired.

They are concerned the purchase of the armoured vehicles – which will equip the Army’s new strike brigades – will not be put out to competition.

Instead they fear the deal will be a “single source” arrangement where it goes to a supplier without competitive bids, and the likely supplier will be German group Rheinmetall’s “Boxer” design.

Meg Hillier, chairman of the public accounts spending watchdog, has written to Gavin Williamson, Defence Secretary, highlighting the worries.

Saying the committee has been told a decision on how MIVS will be purchased is imminent, Ms Hillier added: “I am concerned by suggestions you appear to favour a single source approach favouring an overseas provider.”

She said: “Given the level of overspend on many defence programmes, I am not convinced this single source approach can always deliver savings. It also fails to take into account the wider benefits to the UK economy from sourcing within the UK.”

The concerns were echoed by the defence select committee.

A spokesman for the MOD said: “No decision has been taken on the acquisition strategy for MIV, and at this stage our approach remains competitive procurement within the supply chain wherever possible.”