Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Consideration of potential conflicts of interest is also relevant to other contracts with testing suppliers.
Recommendation
Consideration of potential conflicts of interest is also relevant to other contracts with testing suppliers. Some suppliers offering testing services were referred to the Department by ministers, MPs or Number 10. The Department marked supplier offers as ‘VIP’ if they had been referred from these sources and the suppliers were given priority status. From May 2020 to March 2021, these priority suppliers received £6 billion of the £7.9 billion of testing contracts awarded during this period.23 The Agency’s view is that there was not a causal association between being a priority supplier and being awarded a contract, because it said every contract went through the same technical validation and commercial processes.24 21 Qq 76, 100–103, 112 22 Report by the Comptroller and Auditor General, Conflicts of interest, Session 2014–15, HC 907, 27 January 2015, paras 1.1–1.7, 3.7–3.8 23 C&AG’s Report, paras 1.10–1.12 24 Qq 93, 95 12 Government’s contracts with Randox Laboratories Ltd 2 Wider procurement issues Scrutiny of the contract
Government Response Summary
The government has strengthened its approach to ensure that conflicts of interest are not just documented, but also communicated and acted on by those awarding contracts, updating commercial guidance and introducing clear processes, and the Procurement Bill continues to place legal duties on contracting authorities.
Government Response
Accepted
HM Government
Accepted
3b: PAC recommendation: In addition to the expected new requirements to record conflicts of interest, government should strengthen its approach to ensure that conflicts of interest are not just documented, but also communicated and acted on by those awarding contracts. 3.3 The government agrees with the Committee’s recommendation. Recommendation Implemented 3.4 Specific legal duties in the Public Contracts Regulations require government departments to take appropriate measures to effectively prevent, identify and remedy conflicts of interest arising in the conduct of procurement procedures, so as to avoid any distortion of competition and to ensure equal treatment of all bidders and suppliers. Companies may be 15 excluded from bidding for government contracts where a conflict cannot be effectively remedied. 3.5 The government recognises that the experience of COVID-19 shows it could be better at ensuring consistency in the management of conflicts of interest. Updated commercial guidance on the management of actual and perceived conflicts of interest was published in May 2021 (PPN 04/21: Applying Exclusions in Public Procurement, Managing Conflicts of Interest and Whistleblowing) 3.6 The department has completed its implementation of this PPN, having introduced a clear process to ensure that conflicts of interest are considered at appropriate stages of the procurement lifecycle, including a review of the declaration forms in line with the PPN. The UK Health Security Agency (UKHSA) is in the process of updating its conflicts of interest policies in response to the PPN. 3.7 The department will ensure that all its contract managers (officials) routinely complete a conflicts of interest declaration during their involvement in managing contracts. All contractors working for the department are required to complete the conflicts of interest form. 3.8 The Procurement Bill currently going through Parliament continues to place legal duties on contracting authorities with respect to the prevention and remedy of conflicts of interest.