xmlns:atom="http://www.w3.org/2005/Atom"

Part 1Defence procurement

Defence procurement arrangements

1Arrangements 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—

2Financial 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).

3Financial 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—

(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).

4Exemptions relating to premises used by a contractor

Schedule 1 (exemptions relating to premises used by a contractor) has effect.

5Jurisdiction 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 mentioned in section 1.

(2)Section 2(3) of that Act has effect as if the reference to Crown property included a reference to property which—

(a)belongs to a contractor, is in its possession or under its control or has been unlawfully removed from its possession or control, and

(b)is, or was immediately before its removal, used to any extent for the purpose of the provision of defence procurement services as mentioned in subsection (1)(b).

(3)Section 2(3) of that Act also has effect as if the reference to a contract entered into by the Secretary of State for Defence for the purposes of his Department or the Defence Council included a reference to a contract entered into by a contractor for the purposes of, or for purposes which include, the provision of defence procurement services as mentioned in subsection (1)(b).

6Status of contractor

(1)This section applies where arrangements mentioned in section 1 provide for a contractor to act on behalf of the Secretary of State for the purposes of a provision of a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence procurement.

(2)Any right or power of the Secretary of State under the provision of the contract may be exercised by the contractor on behalf of the Secretary of State.

(3)Any duty or liability of the Secretary of State under the provision of the contract may be discharged by the contractor on behalf of the Secretary of State.

(4)Nothing in the contract or otherwise prevents or penalises the exercise of a right or power of the Secretary of State, or the discharge of a duty or liability of the Secretary of State, in the way mentioned in subsection (2) or (3).

7Restrictions on disclosure or use of information

Schedule 2 (restrictions on disclosure or use of information) has effect.

8Intellectual property rights

(1)The Secretary of State may provide a protected work to a contractor or a service provider to a contractor, without infringing copyright or database right, if—

(a)the Secretary of State acquired (whether before or after the coming into force of this section) a right to use the work under or in connection with a relevant contract, and

(b)the provision of the work is necessary or expedient for the purposes of arrangements mentioned in section 1.

(2)A contractor or former contractor, or a service provider to a contractor or former contractor, may, without infringing copyright or database right, provide a protected work provided to it under subsection (1) or this subsection—

(a)to a contractor or service provider to a contractor, or

(b)to the Secretary of State,

if the provision of the work by the contractor, former contractor or service provider is necessary or expedient for the purposes of arrangements mentioned in section 1.

(3)A contractor or service provider to which a protected work has been provided under subsection (1) or (2) may, without infringing copyright or database right, make any use of the work that the Secretary of State could make as a result of the Secretary of State’s right to use the work if the use of the work by the contractor or service provider is necessary or expedient for the purposes of arrangements mentioned in section 1.

(4)In this section—

(5)In this section a reference to providing a protected work to a person includes a reference to the making of a copy of the work for the purposes of providing it to the person.

(6)In this section a reference to the right to use a protected work—

(a)in relation to a copyright work, is a reference to a licence to exercise a right which would otherwise be exercisable by the owner of the copyright in the work;

(b)in relation to a database, is a reference to a right to use the database under a licence to do an act restricted by database right in the database.

Transfers

9Transfer of employees: application of TUPE regulations

(1)The TUPE regulations apply to the transfer of a relevant undertaking or any part of it by virtue of arrangements mentioned in section 1 whether or not the relevant undertaking would otherwise be treated as an undertaking to whose transfer the regulations apply.

(2)For the purposes of the TUPE regulations, the services of the relevant employees are to be treated as a part of that undertaking to whose transfer the regulations apply whether or not the company which is to become their employer also provides defence procurement services by virtue of arrangements mentioned in section 1.

(3)In this section—

10Transfer schemes

(1)The Secretary of State may make one or more schemes for the transfer of property, rights and liabilities (a “transfer scheme”) if—

(a)a relevant contractor is in breach of a services contract and the breach occurs in specified circumstances or is of a specified kind, or

(b)a services contract has come to an end, whether by the expiry of the period for which it was in force or otherwise.

(2)A transfer scheme may provide for the transfer of property, rights and liabilities to—

(a)the Crown,

(b)the Secretary of State, or

(c)a company mentioned in section 1(2)(a).

(3)The property, rights and liabilities that may be transferred by a transfer scheme are—

(a)property, rights and liabilities of a relevant contractor;

(b)securities in a relevant contractor;

(c)any property or rights of a third party that was or were acquired from a relevant contractor and any liabilities of a third party so far as relating to any such property or rights.

(4)Subsection (3) does not apply to property, rights or liabilities to the extent that an agreement between the Secretary of State and the person entitled to or subject to them provides that they are not to be transferred by a transfer scheme.

(5)Schedule 3 makes further provision about transfer schemes under this section.

(6)In this section—

General

11Financial provisions

There is to be paid out of money provided by Parliament any expenditure of the Secretary of State incurred—

(a)in connection with the formation of any company formed with a view to, or for any purpose of, the provision of defence procurement services or otherwise in connection with the establishment of arrangements mentioned in section 1;

(b)in assuming responsibility for any liabilities of a company which is or has been concerned in or in connection with the provision of defence procurement services which are liabilities arising out of the provision of such services or liabilities to or in respect of persons employed or formerly employed in or in connection with the provision of such services.

12Interpretation of this Part

(1)In this Part—

(2)In the definition of “publicly owned company” in subsection (1), “relevant person” means—

(a)a Minister of the Crown,

(b)a publicly owned company, or

(c)a nominee of a person falling within paragraph (a) or (b).