Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Acknowledged
In early 2022, HMPPS decided to outsource this role again in its re-procurement and transition...
Conclusion
In early 2022, HMPPS decided to outsource this role again in its re-procurement and transition to the new service. The NAO outlined areas where HMPPS will need to be prepared to manage risks with this approach, including: • Parties having different interpretations of what the integrator role involves and where accountability sits if problems arise; • The integrator having no contractual oversight of the other supplier; and • The potential for real or perceived conflicts of interest, given that its field services supplier will be responsible for delivering substantial work while integrating others’ work.52
Government Response Summary
Project risks are managed in accordance with the EM Portfolio Risk Management Strategy, new contracts are being procured in compliance with government standards, and suppliers will be managed by the EM contract management team.
Government Response
Acknowledged
HM Government
Acknowledged
6.2 Project risks are managed in accordance with the EM Portfolio Risk Management Strategy (RMS). The RMS is based on the department’s policy on risk management and has been drafted in accordance with the principles outlined within the HM Treasury ‘Orange Book’ on the Management of Risk – Principles and Concepts. 6.3 The procurement of new contracts is being run in compliance with the government standard, The Sourcing Playbook (last updated May 2021). 6.4 Once new contracts have been awarded (in summer 2023) suppliers will be managed by the EM contract management team, who have been involved in the design and procurement of the future service as key stakeholders. The contract management team have worked with the wider EM Future Service team to: • embed market insight and wider EM lessons learned into the design of the service; • advise on, and support the development of the future service performance regime and collaboration approach; and • advise, and support the articulation of the integrator role and the detailed definition of the roles and responsibilities of the two new suppliers, as well as that of the agency, in the Future Service design. 6.5 This knowledge and understanding will enable the team to effectively manage the new contracts from the outset. 6.6 The agency will write to the committee in August 2023, once new contracts have been awarded.