Source · Select Committees · Public Accounts Committee
Recommendation 7
7
The Department has wasted hundreds of millions of pounds on PPE which is of poor...
Conclusion
The Department has wasted hundreds of millions of pounds on PPE which is of poor quality and cannot be used for the intended purpose. The urgent need for PPE meant it accepted more risks when buying PPE than it usually would. At the time of our evidence session, some 195 million items of PPE, equivalent to 10 COVID-19: Government procurement and supply of Personal Protective Equipment around 1% of those received to date, had been identified by the Department as being potentially unsuitable for their intended purpose. The Department hopes that some of this can be used for other purposes. It now estimates that only 0.4% of the PPE it has received failed to meet safety standards and therefore cannot be used at all and that 1.3% of items were not fit for the intended purpose. It has not yet estimated the amount of money that has been spent on potentially unusable items, but this will amount to hundreds of millions of pounds. The Department told us told us that its PPE contracts contain clauses which allow it to reclaim costs for substandard PPE or PPE that was not provided, but it could not tell us how many of these contracts it was pursuing or how much progress it had made. Recommendation: The Department should write to the Committee by July 2021 setting out how much of the PPE it ordered it has received and checked, and the volumes and costs of the PPE that (a) cannot be used at all; (b) cannot be used for its intended purpose; and (c) its methodology for determining the volumes and costs of PPE which it considers to be in each of these categories.
Government Response
Not Addressed
HM Government
Not Addressed
7.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2021 7.2 Processes are underway to review the quality of all the PPE the government has bought, which is on course to complete by the end of June 2021. 7.3 This process will determine whether or not products are suitable to be released to the frontline. Any products that are not currently used on the frontline will be subject to further quality investigation and contractual review. The department will write to the Committee by the end of July 2021 to report on the findings from this analysis. In January 2021, the department reported to the Committee that 1.3% of total PPE bought could not be used for its original intended purpose. This was generated as a best estimate at the time. The department is now reviewing with support of external audit to assess the current 11% of ordered volume that is not currently being supplied to the frontline. After this work is complete, it will be able to give a final accurate per cent of volume that cannot be used for its original intended purpose. A total of 0.31% of delivered volume are marked as wastage. 7.4 This review will enable an assessment of the costs of the PPE in each of these categories to be made. An assessment of the value of the stock will be made, using the weighted average cost model, and the department will provide the Committee with a detailed breakdown in July 2021.