Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Accepted
The first contract did not receive the level of senior scrutiny and sign-off that we...
Conclusion
The first contract did not receive the level of senior scrutiny and sign-off that we would expect for a contract of this size, particularly one awarded without competition. The contract was signed by a deputy director in the Department after officials received authorisation to proceed with the contract from Lord Bethell, the then Minister for Technology, Innovation and Life Sciences in the Department.27 However, Lord Bethell’s authorisation was not formal approval for the contract and the Department confirmed that ministers were not asked to sign off contracts. It added that at that time, contracts were being assured by the Department’s then Second Permanent Secretary, David Williams.28 The Department acknowledged that the lack of documentation to demonstrate formal approval for the first Randox contract was “deeply unfortunate”.29 The Department also confirmed that the head of NHS Test & Trace was not consulted about the award of the subsequent contract extension in October 2020.30
Government Response Summary
The Government Commercial Function published guidance for Ministerial involvement in commercial activity and the contracting process in July 2022, clarifying the role of ministers in procurement processes, including contract discussions and approvals.
Government Response
Accepted
HM Government
Accepted
4: PAC conclusion: 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. 4: PAC recommendation: Government should provide additional guidance to clarify the role of ministers in procurement processes, including contract discussions and approvals. 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.