Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
The award of the first Randox contract did not receive adequate scrutiny from senior officials...
Recommendation
The award of the first Randox contract did not receive adequate scrutiny from senior officials and the role of ministers in signing it off was unclear. The Department’s then Second Permanent Secretary had some visibility of the first contract awarded to Randox, but he did not approve it as we would normally expect. Instead, Lord Bethell, the then Minister for Technology, Innovation and Life Sciences, was asked by departmental officials to provide his authorisation to proceed with the contract. The Department says this was not formal approval of the contract, but in the absence of any other senior sign-off for the contract from either officials or ministers, the contract was signed by a deputy director. Normal processes for contract spend approvals involving the Cabinet Office were also by- passed during the early months of the pandemic, which meant that the Cabinet Office did not provide its approval for Randox’s first contract for testing services. Recommendation: Government should provide additional guidance to clarify the role of ministers in procurement processes, including contract discussions and approvals.
Government Response Summary
The government published guidance for Ministerial involvement in commercial activity and the contracting process in July 2022, outlining the expected role and involvement of Ministers.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation Recommendation Implemented 4.2 The Government Commercial Function published guidance for Ministerial involvement in commercial activity and the contracting process in July 2022. 4.3 Ministers have a vital role in setting commercial priorities, making sure that the right suppliers are chosen to address the right requirement and managing contracts to achieve the performance and value required. The guidance sets out in detail the expected role and involvement of Ministers from market engagement in the pre-procurement phase right through to approval and supplier management post contract signature. 4.4 The guidance sets out the parameters for Ministers, expected best practice and interactions with Department officials in fulfilling their respective roles. For example, Ministers should include a senior member of the Department’s Commercial Directorate in a meeting with a supplier to ensure that a level playing field is maintained and that suppliers are not over- selling their capabilities or performance. 4.5 The guidance is clear that is both desirable and important to maintain a clear separation of the Minister’s role from that of the procurement team – officials - in the selection of suppliers for public contracts. It expressly states that Ministers should not seek to influence the procurement process so that for example the requirement, timing and choice of procedure favours one particular supplier over another; or express a preference for or against a particular supplier during the selection process based on anything other than the evaluation of a supplier’s response against the published selection and award criteria. 16