Source · Select Committees · Public Accounts Committee
Recommendation 12
12
We asked the Department about its commercial capability.
Conclusion
We asked the Department about its commercial capability. It confirmed that this was on its “worry list” prior to the arrival of the COVID-19 pandemic and continues to be a challenge.24 The Department stated that it has an ongoing programme of contract training with some 972 learners across health (DHSC, ALBs and NHS) registered for the Foundation Training, of which 450 achieved accreditation. At 31 March 2021, the Department had over 700 new contracts with a value of over £12 billion still active.25
Government Response
Not Addressed
HM Government
Not Addressed
2: PAC conclusion: The procurement of PPE in response to the COVID-19 pandemic overwhelmed existing systems and has exposed weaknesses in the Department’s commercial contracting capability. 2a: PAC recommendation: In its Treasury Minute response the Department should set out its ‘commercial reset’ plan and the timeline for scaling up its commercial capability across the Departmental Group to ensure sufficient support is in place to procure and manage existing and future contracts. 2.1 The government agrees with the Committee’s recommendation Target implementation date: Spring 2023 2.2 The department has undertaken a commercial reset with new structures implemented on 1 April 2022 and a six-month transition period is now underway. The process was designed to bring about a range of benefits, including: • clearer lines of responsibility and accountability • strengthened commercial governance and clear escalation processes • reinforcement of best practice behaviours and compliance with procurement policy and process • increased commercial awareness across the department, Health Family and Health System. 2.3 The department discharges its commercial capability responsibilities through the Health Family Commercial Head of Profession (HOP) plan. This is part of the Best Practice Framework for professions in the Civil Service. 2.4 The department is aligned to the Government Commercial Function (GCF) standards; 96% of DHSC staff at Grade 7 or above in operational commercial roles having achieved GCF accreditation or are working towards this. 2.5 Following a skills review, a range of priority commercial capability activity is being implemented for 2022-23. This includes a bespoke procurement capability programme that will increase commercial capability for staff undertaking commercial activity and increase commercial awareness for all staff.