Commentary on Sections Part 1: Defence Procurement Section 6: Status of contractor
26.This section applies in relation to contracts entered into by the Secretary of State before the vesting date. The vesting date is defined in section 12 as a day appointed by the Secretary of State by order made by statutory instrument.
27.A procurement or support contract made prior to the vesting date may be silent on whether a contractor is permitted to carry out the contract on behalf of the Secretary of State. Therefore this section provides that any right or power of the Secretary of State under any such contract may be exercised by the contractor on behalf of the Secretary of State and any duty or liability of the Secretary of State may be discharged by the contractor on behalf of the Secretary of State. The Secretary of State cannot be prevented or penalised for arranging for the contractor to exercise his rights or powers or discharge his duties or liabilities under any such contract.