Public sector suppliers have expressed fears over the UK government’s move to privatise procurement services.

The running of the Defence Equipment & Support agency (DE&S), which delivers procurement services for the Ministry of Defence, has been offered up to the private sector.

U.S. groups Bechtel and CH2M Hill have emerged as the leading bidders for the management service, with other firms bidding for the contract including Serco and PricewaterhouseCoopers.

A major supplier to the MoD has reportedly raised concerns surrounding the privatisation of procurement services according to the Independent. The issues surrounded the ability of private procurement organisations to effectively negotiate with suppliers, when security details of the service could potentially be revealed, damaging both the stock position of the defence supplier and the security of UK defence capabilities.

The move to include the private sector in defence procurement agencies was promoted by Defence Secretary Philip Hammond, as a way to create greater cost savings, in keeping with the need to reduce public sector spending.

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