Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
Inflexible procurement processes fail to account for digital programmes' complexities and hinder effective delivery.
Recommendation
Procurement processes are considered inflexible and do not take account of the complexities and uncertainties of digital programmes, as set out in the C&AG’s report on The challenges in implementing digital change.62 Departments often cannot precisely define and scope their requirements yet continue with procurements and expect suppliers to make priced proposals as if these uncertainties were not a problem. Once awarded, contract lots are not always allocated to best fit the delivery plan and focusing on cost minimisation rather than best outcome can lead to defensive behaviours from all parties rather than constructive partnership.63
Government Response Summary
The government accepted the recommendation regarding procurement processes, agreeing to address the inflexibility and complexity for digital programmes. CDDO is engaging with Commercial, Operational Delivery, and HMT functions to discuss these challenges and plans to gather information on their strategies for digital reform, targeting implementation by February 2024.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: February 2024 5.2 CDDO has an overall milestone that the barriers to digital transformation will be addressed by 2025. However, it recognises this is dependent on other parts of government, such as HM Treasury, the Commercial Function and the Infrastructure and Projects Authority (IPA). Digital change involves levels of complexity, uncertainty and risk which are often unique to each specific programme due to legacy systems, existing ways of operation and the difficulties of integrating something new. 5.3 These differences should be reflected in business cases, funding and approvals processes, procurement of technology, audit and project review assurance and policy development. CDDO is regularly engaging with the Commercial and Operational Delivery Functions to discuss these challenges and options to address, as well as with HM Treasury. 5.4 This year (2023), CDDO plans to ask functions to share information on their current strategy and plans to achieve digital reform.