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He will also be focusing on profit margins, because Serco is winning fewer highly profitable contracts.
The more likely outcome is that well-connected businessmen will win profitable contracts, while the country bears the cost of a war that is unpopular among the population at large and, significantly, within the armed forces.
Miliband also announced that a Labour government would try to stop the cherry-picking of profitable contracts by "developing a more cost-reflective tariff system to ensure that the prices paid better reflect patient complexity".
Representative Christopher Shays, the Connecticut Republican who headed the hearing at which Mr. Thompson spoke, said today that companies should be allowed to have profitable contracts with the government to develop bioterrorism drugs.
The Derby-based engine manufacturer joined Pearson, BG Group and Royal Bank of Scotland in surprising investors this year with an about-turn on earnings, predicting profits would be flat in 2014 owing to US defence cuts and the end of profitable contracts.
Though many public services have already been privatised, the greatest problem for the current Conservative government – and those like the Confederation of British Industry who seek further privatisation – has been the scale at which it is feasible to provide profitable contracts for private sector providers.
Similar(45)
"Bushehr is a very interesting and profitable contract for us," said Mr. Nigmatulin, the Russian atomic energy official.
But investors are concerned over Disney's profitable contract with Pixar, the maker of animated films, which ends in 2006.
"This contract, in any kind of normal time, any year in my 35 years in the business except for 2009, is a profitable contract," he said.
"ITIS had been the incumbent for the past three years and it has been the company's largest and most profitable contract to date.
Chris Godsmark, of the brokers Henderson Crosthwaite, says: "It has a nice mix of customers and 50 per cent of its growth is coming from the more profitable contract customer segment of the market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com