Source · Select Committees · International Development Committee
Recommendation 34
34
Paragraph: 89
The way that FCDO contracts are structured creates disincentives for implementing partners to hire local...
Conclusion
The way that FCDO contracts are structured creates disincentives for implementing partners to hire local staff, particularly in project lead roles. While FCDO fee rates for locally hired staff may be linked to local pay-scales in humanitarian and development settings, they can lead to large inequalities when compared to internationally hired staff. This can undermine relations with local actors, damage trust and make frontline workers feel undervalued.
Paragraph Reference:
89
Government Response
Acknowledged
HM Government
Acknowledged
The FCDO has a responsibility to maintain stability and avoid distortion of local markets. We must ensure wages are fair in regional contracts and that fees accurately reflect costs of living. We assess wages in categories (international, national or regional) as well as by job ‘family’ at Initiation to Tender Stage as part of commercial pricing schedules as well as taking into account technical and qualitative capability of suppliers throughout the process to allow us to award the Most Economically Advantageous Tender. The importance and value of local and contextual knowledge is assessed as part of the evaluation process.