PARLIAMENTARY WRITTEN QUESTION
Royal Fleet Auxiliary: Tankers (25 January 2016)

Under European and UK procurement regulations, the Ministry of Defence (MOD) could not contractually mandate the use of particular suppliers. Decisions on the source of steel are a matter for the contractors who take into account the cost, timeliness of availability and the quality of steel used in defence contracts. These considerations allow defence contractors to deliver value for money for the taxpayer.

The Military Afloat Reach and Sustainability contract to build the four Tide Class tankers was awarded to Daewoo Shipbuilding and Marine Engineering in March 2012. Although UK companies participated in the competition to supply the vessels, none submitted a final bid.

In January 2015, the MOD awarded a contract worth approximately £15 million to A&P Group Ltd in the UK for the provision of UK customisation, Capability Assessment Trials and Support for all four tankers. The work will be managed by A&P Group Ltd's Falmouth shipyard.

Manufacture of the four Tide Class tankers will in total require 44,000 tonnes of steel. Daewoo Shipbuilding and Marine Engineering source this steel locally in South Korea. The market value of steel depends upon a number of factors, including geographical location and quality. The MOD does not hold information from which the market value of the steel used in the manufacture of the Tide Class tankers could be determined.