De La Rue v Gemalto

By | Category: Travel rumblings

the old blue passport was much larger than the burgundy passport. the new blue passport will be the same size as the burgundy coloured one

There has been a bit of an outcry about the fact that a Franco-Dutch firm called Gemalto has won the contract to produce the new post Brexit, blue passports.

The hubbub has arisen because a number of MP’s and Brexiters feel that a British company should have been awarded the contract. Lord Foulkes said the matter should be reviewed “in the name of not just security, but of national pride.”

At present De La Rue prints most of the passports with about 20% of blank passports being manufactured overseas. All are personalised in the UK and that will continue to be the case under the new contract.

Forget all the noise about the fact that under EU rules (which we still are) the tender needed to fulfil existing procurement rules as I am sure they could be “qualified.”

The UK bidder, De La Rue seems to have bid some £120 million – about 25% as much again as the winning bidder and there I think is where questions should be asked. As the existing provider they would have a better idea than almost any other rival supplier as to the costings. Why then did it submit a bid so high? If their costs have risen so steeply since winning the last tender, shouldn’t the comany have looked at reducing costs so as to be competitive in the international marketplace that it serves? Surely it couldn’t be because they felt that they could tender a higher price in the belief that the contract was bound to be awarded to a British supplier and here was an opportunity to go in at a high price?

De La Rue said that it would appeal against the decision.

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