National Audit Office (NAO) - Cabinet Office: Managing Government Suppliers - HC 811

National Audit Office (NAO) - Cabinet Office: Managing Government Suppliers - HC 811
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Total Pages: 58
Release: 2013-11-12
Genre: Political Science
ISBN: 9780102987034

In this memorandum 'Managing government suppliers', the NAO welcomes the fact that the Cabinet Office is now asserting government's position with contractors in way that its scale as a customer merits. Specifically, this has enabled government to get greater value from contracting and has sent signals that government is willing to be tough on underperformance. However, the Cabinet Office still faces a number of challenges in developing a more mature approach. It is currently focused on short-term savings and has adopted a robust approach with departments and suppliers, which has enabled it to report significant savings from contract renegotiations. However, this approach will become harder over time, and risks missing out on achieving longer-term value for money through innovation and investment. There is a balance to be struck between tough negotiations and maintaining relationship with suppliers in the long term, if government is to maintain competition in public sector markets. The Cabinet Office is seeking to reform commercial practice across Government with the development of the Crown Commercial Service. There is a risk that the ambitions are not matched by the right resources, capability and information. It has gaps in commercial experience and expertise below senior levels, while its information on its 40 strategic suppliers is inconsistent and incomplete. A related report 'The role of major contractors in the delivery of public services' (HC 810, session 2013-14, ISBN 9780102987027) sets out some of the benefits that can be achieved through contracting but highlights issues that deserve greater public scrutiny.

National Audit Office (NAO): Government Contracting: The Role of Major Contractors in the Delivery of Public Services - HC 810

National Audit Office (NAO): Government Contracting: The Role of Major Contractors in the Delivery of Public Services - HC 810
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Total Pages: 70
Release: 2013-11-12
Genre: Political Science
ISBN: 9780102987027

In the memorandum 'The role of major contractors in the delivery of public services' the NAO sets out some of the benefits that can be achieved through contracting but highlights three issues that deserve greater public scrutiny. First, it raises questions about the way public service markets operate. This includes the need for scrutiny over whether public service contracts are sufficiently competitive and whether the rise of a few major contractors is in the public interest. Secondly, it highlights the issue of whether contractors' profits reflect a fair return. Understanding contractors' profits is important to ensure that their interests are aligned properly with that of the taxpayer. But transparency over rewards that contractors make is at present limited. Thirdly, the report asks how we know that contractors are delivering services to the high standards expected. In particular, government needs to ensure that large companies with sprawling structures are not paying 'lip-service' to control and that they have the right culture and control environment across their group. This requires transparency over contractors' performance and the use of contractual entitlement to information, audit and inspection. This should be backed up by the threat of financial penalties and being barred from future competitions if things are found to be wrong. A related report 'Managing government suppliers' (HC 811, session 2013-14, ISBN 9780102987034) examines the way the Cabinet Office is working to improve government's management of strategic suppliers.

Improving Government Procurement

Improving Government Procurement
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Total Pages: 52
Release: 2013-02-28
Genre: Political Science
ISBN: 9780102981315

Since 2010, the government has made a number of changes to its procurement structures and processes. There have been signs of good progress in key areas: expenditure on common goods and services is more centralised; participation by small and medium enterprises (SMEs) has increased; and the Government Procurement Service is an improvement on its predecessor. The creation of a Chief Procurement Officer and associated positions has formed clearer lines of responsibility at the centre, and the Cabinet Office now has a firmer grip of procurement expenditure. Overall, the NAO expresses confidence in the Service's reported savings of £426 million in 2011-12 as a result of reductions in price owing to centralised procurement. Nevertheless, there have been problems in implementing the reforms, including ineffective governance structures, unrealistic targets, incomplete data and weaknesses in contract management. Government is not maximising the potential for savings through centralised procurement. There are some operational issues with GPS's management of the central contracts, with departments raising concerns about the inconsistency of contract management and the quality of customer service. And some weaknesses in implementation mean that the centralised approach is not releasing procurement resources in departments as originally expected. Roles and responsibilities for day-to-day contract management are unclear and there are inadequate mechanisms by which departments and the centre of government can hold each other to account. The Cabinet Office will have to lead a major cultural shift across government if the centralising of buying goods and services is to deliver the significant benefits on offer.

Rethinking Governance in Public Service Outsourcing

Rethinking Governance in Public Service Outsourcing
Author: Nina Boeger
Publisher: Policy Press
Total Pages: 200
Release: 2024-07-19
Genre: Business & Economics
ISBN: 1529212847

Compelling and robust, this book provides an analysis of challenges in public service outsourcing and considers how to avoid failure in the future. Crucially, it proposes a governance mechanism where outsourcing public services nurtures less extractive and more sustainable corporate organizations that are oriented towards a productive purpose beyond maximising shareholder value, with implications well beyond public services. Under these proposals, supporting firms that are independently and inclusively governed and use profit to pursue purpose can improve both public services and wider economic organisation. The book examines how barriers to implementing this idea within the existing legal framework for public procurement may be addressed, and it formulates actionable policy proposals.

Selecting Suppliers

Selecting Suppliers
Author: Australian National Audit Office
Publisher:
Total Pages: 48
Release: 1998
Genre: Contracting out
ISBN: 9780644389211

Open public services

Open public services
Author: Great Britain: Cabinet Office
Publisher: The Stationery Office
Total Pages: 60
Release: 2011-07-11
Genre: Political Science
ISBN: 9780101814522

This White paper puts forward a comprehensive policy framework across public services. It sets out the principles for reforming public services and how they apply to existing policies. It also, crucially, outlines a range of wider ambitions for further consultation. The Government plans to follow five principles for modernising public services: wherever possible choice will be increased; public services should be decentralised to the lowest possible level; public services should be open to a range of providers; ensuring fair access to public services and that public services should be accountable to users and to taxpayers. In applying these principles it is recognised that different public services have different characteristics and the proposals are tailored accordingly. In essence, three different categories of public services are identified: individual services; neighbourhood services; and commissioned services. For individual services the aim is to put power in the hands of the people who use them; for neighbourhood services the aim is to put power in the hands of the elected councils; and for commissioned services, the intention is to open up and, where appropriate, decentralise commissioning to ensure greater quality and diversity.