Source · Select Committees · International Development Committee
Recommendation 29
29
Rejected
Perform audit of FCDO private contractor engagements exceeding 12 months, assessing performance alignment.
Conclusion
The FCDO should perform an audit of all individual private contractor engagement longer than 12 months or approaching renewal. This must assess whether extended tenures align with performance outcomes and original mandates, with findings with clear recommendations for terminations or formal renegotiations to be escalated to senior leadership. (Recommendation, Paragraph 91) 48 Monitoring, Evaluation and Learning
Government Response Summary
The government rejects the recommendation for an audit, stating that existing robust governance, performance reviews, and contract management processes already provide sufficient oversight and accountability, making additional audits unnecessary.
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.