Defence Reform Act 2014
Defence Reform Act 2014
2014 CHAPTER 20
An Act to make provision in connection with any arrangements that may be made by the Secretary of State with respect to the provision to the Secretary of State of defence procurement services; to make provision relating to defence procurement contracts awarded, or amended, otherwise than as the result of a competitive process; to make provision in relation to the reserve forces of the Crown; and for connected purposes.
[14th May 2014]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
Part 1
Defence procurement
Defence procurement arrangements
1 Arrangements for providing defence procurement services
(1) This Part applies if the Secretary of State makes arrangements-
(a) for a company to provide defence procurement services to the Secretary of State under contract, and
(b) for that or another company-
(i) to acquire from the Secretary of State rights in or over premises and property used for the purposes of DE&S, and
(ii) to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection with DE&S immediately before the time the company is to become their employer,
with a view to those premises, that property and the services of those employees being made available for providing the defence procurement services.
(2) This Part also applies if-
(a) the Secretary of State makes arrangements ("the new arrangements") for a company to provide defence procurement services to the Secretary of State under contract, which may include arrangements for another company to make premises, property and the services of employees available for providing the defence procurement services, and
(b) the new arrangements are the successor to arrangements mentioned in subsection (1) or other arrangements mentioned in this subsection ("the old arrangements").
(3) The new arrangements are "the successor" to the old arrangements if-
(a) a company mentioned in subsection (2)(a) is or was a contractor under the old arrangements, or
(b) for the purposes of the new arrangements, property, rights or liabilities of a company which is or was a contractor under the old arrangements are to be or have been transferred, by virtue of the old arrangements or by a transfer scheme under section 10, to a company mentioned in subsection (2)(a).
(4) The new arrangements are also "the successor" to the old arrangements if-
(a) property, rights or liabilities of a contractor under the old arrangements have been transferred, by virtue of those arrangements or by a transfer scheme under section 10, to the Secretary of State, and
(b) the new arrangements provide for a company mentioned in subsection (2)(a)-
(i) to acquire from the Secretary of State rights in or over premises and property used for the purposes of the departmental defence procurement undertaking, and
(ii) to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection with that undertaking immediately before the time the company is to become their employer,
with a view to those premises, that property and the services of those employees being made available for providing the defence procurement services.
(5) Subsections (1)(b) and (4)(b) apply whether the arrangements provide for the company to acquire rights in or over premises and property, or to become the employer of persons, on one, or on more than one, occasion.
(6) References to a company in subsection (2) include, in particular, a publicly owned company (and references to a company in the other provisions of this Part are to be read accordingly).
(7) Arrangements mentioned in this section may provide for a contractor to exercise to any extent a discretion of the Secretary of State in connection with the exercise by the Secretary of State of a function involving defence procurement.
(8) In this Part-
"contractor" means- (a) a company- (i) which provides defence procurement services to the Secretary of State under contract by virtue of arrangements mentioned in this section ("relevant arrangements"), or (ii) in relation to which relevant arrangements have been made for it to provide defence procurement services but which is not yet doing so, or (b) a company- (i) which, by making premises, property and the services of employees available, enables defence procurement services to be provided to the Secretary of State under contract by virtue of relevant arrangements, or (ii) in relation to which relevant arrangements have been made for it to make premises, property and the services of employees available for enabling defence procurement services to be provided but which is not yet making those things available;
"DE&S" means the undertaking carried on by the Secretary of State and known as Defence Equipment and Support;
"defence procurement" means- (a) the acquisition of anything (including support or logistics services) required for defence purposes, (b) the management, monitoring or enforcement of contracts entered into for the acquisition of anything so required, and (c) related support or logistics;
"defence procurement services" means services relating to defence procurement;
"defence purposes" means- (a) the purposes of defence (whether or not of the United Kingdom) or policing, or (b) related purposes;
"the departmental defence procurement undertaking" means any undertaking carried on by the Secretary of State for the purposes of defence procurement after arrangements mentioned in subsection (1) have come to an end.
2 Financial assistance
(1) The Secretary of State may give financial assistance to a contractor.
(2) The financial assistance may be given on terms and conditions that the Secretary of State thinks appropriate.
(3) "Financial assistance" means loans, guarantees or indemnities, or any other kind of financial assistance (actual or contingent).
3 Financial claims against contractors or former contractors
(1) If a financial claim is brought in a court in the United Kingdom or elsewhere against a company which is, or has been, a contractor, any liability of the company resulting from the claim is transferred to the Ministry of Defence.
(2) The Secretary of State may make payments for the purpose of settling any liability of the Ministry of Defence that may arise, or has arisen, under this section.
(3) A company which is, or has been, a contractor must provide the Secretary of State with any assistance that the Secretary of State reasonably requires in connection with a financial claim that may be, or has been, brought against the company (including in connection with any appeal or further appeal in relation to the claim).
(4) The assistance that a company may be required to provide includes in particular-
(a) providing documents, other information or explanations;
(b) providing access to evidence;
(c) making employees available for the purposes of court proceedings.
(5) An obligation imposed on a company under subsection (3) is enforceable as if contained in a contract between the company and the Secretary of State.
(6) For the purposes of this section, a claim is a "financial claim" to the extent that-
(a) it is a claim for damages or any other claim for a sum of money,
(b) it is brought by a person other than an excluded person, and
(c) it is not an excluded claim.
(7) In this section-
"excluded person", in relation to a claim against a company, means- (a) another company which is, or has been, a contractor, or (b) a Minister of the Crown or Government department;
"excluded claim", in relation to a claim against a company, means a claim which relates to- (a) services provided by the company otherwise than to the Secretary of State for Defence, (b) a contract of employment to which the company is party, (c) any contract (other than a contract of employment) entered into by the company for the purpose of enabling it to provide services, (d) any health and safety obligation of the company, or (e) anything done or omitted to be done by the company before it became, or after it ceased to be, a contractor;
"health and safety obligation", in relation to a company, means an obligation (whether or not imposed by legislation)- (a) relating to the health, safety or welfare at work of the company's employees, or (b) relating to risks to the health or safety of other persons arising out of or in connection with the company's activities.
(8) Nothing in this section affects any arrangements between the Secretary of State and a company which is, or has been, a contractor under which the company is to compensate the Secretary of State in respect of-
(a) any liability under subsection (1), or
(b) any payment made under subsection (2).
4 Exemptions relating to premises used by a contractor
Schedule 1 (exemptions relating to premises used by a contractor) has effect.
5 Jurisdiction of Ministry of Defence Police
(1) The places to which section 2(2) of the Ministry of Defence Police Act 1987 (jurisdiction) applies include land, vehicles, vessels, aircraft and hovercraft which are-
(a) in the possession, under the control or used for the purposes of a contractor, and
(b) used for the purposes of, or for purposes which include, the provision of defence procurement services to the Secretary of State by virtue of arrangements...
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