Source · Select Committees · International Development Committee
Recommendation 28
28
Rejected
FCDO faces potential loss of in-house expertise due to long-term private contractor engagement.
Conclusion
We are concerned about the potential loss of expertise within the FCDO as a result of engagement with private contractors, particularly where contracts have been ongoing for many years, where in-house expertise could have instead been used. (Conclusion, Paragraph 90)
Government Response Summary
The government disagrees with the committee's concern, stating that existing robust governance, performance reviews, and contract management processes already provide sufficient oversight and accountability, thereby preventing loss of expertise.
Government Response
Rejected
HM Government
Rejected
Disagree. Existing governance, performance reviews, and contract management processes already provide robust oversight and accountability. All FCDO contracts undergo annual reviews assessing delivery against programme objectives, indicators, and intended outcomes, supported by monthly or quarterly reporting. For contracts exceeding £5 million, at least three Key Performance Indicators are mandated, tracked, and published annually. These mechanisms ensure transparency and enable timely identification of performance issues, with corrective actions implemented through time-bound improvement plans or, where necessary, contract termination under the Public Procurement Act 2023. Performance-linked payment structures further reinforce compliance, while any renegotiation of terms is managed through formal contract variations in line with UK procurement regulations. Accredited Contract Managers oversee these processes to ensure alignment with VfM. Governance frameworks include escalation to senior leadership when significant events occur, such as major ODA reductions or severe performance failures, supported by clear data and continuity plans. These measures ensure contracts remain fit for purpose and deliver intended outcomes without requiring additional audits.