Ajax Vehicles: Procurement
The question
To ask the Secretary of State for Defence, whether contractual mechanisms exist to recover costs if Ajax is cancelled; and what is the estimated financial exposure to the MoD.
Answered by Luke Pollard
Investigations into Ajax remain ongoing, but the Ajax contract does contain mechanisms to ensure General Dynamics rectify any failure to meet requirements or obligations, as well as provisions for terminating the contract if there is a material breach of their obligations. This would allow the Ministry of Defence (MOD) to recover costs. The value of the Ajax contract is already published. It would undermine the MOD's position by exposing its view on the level of costs it feels would be claimed in the event of a termination event of this nature.
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