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<p>European Union (EU) laws governing state aid do not apply to activity conducted
outside the boundaries of the EU, however, the Ministry of Defence (MOD) makes no
such distinction and treats all bidders who participate in its competitions equally.</p><p>State
aid is generally prohibited under the Treaty of the Functioning of the EU, apart from
under a few specific exemptions stipulated by legislation. Under EU and UK law, the
mechanism available to the MOD for addressing state aid concerns is through the concept
of an abnormally low tender, related to a specific competitive procurement. The MOD
has the right to reject a tender if a grant of aid was not in accordance with EU and
UK law.</p><p>The MOD takes open competition very seriously and is confident in the
measures in place to ensure that the Fleet Solid Support ships' competitive process
is conducted strictly in accordance with the EU regulations on state aid.</p>
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