Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Set out how to ensure data and capability for informed technology supplier spending decisions.
Conclusion
Government’s ability to get the best deals with technology suppliers is being hampered by its lack of knowledge of what it is spending or its future needs. Government estimates that it spends over £14 billion each year on digital commercial activity. But it cannot say for certain as it has no central record of this spending. Government also lacks reliable or comprehensive data on its overall pipeline of future demand for digital services and lacks the ability to evaluate this against suppliers’ appetite to provide those services. Cabinet Office considers that following the Procurement Act 2023, a new database will give government better data on spending and pipelines. However, this only supplies a platform for departments to submit data. It does not negate the need for systems and processes to be set up between the Centre and suppliers, and between the Centre and departments, to provide the forecast and pipeline data which is critically needed. Without reliable data, government cannot make informed buying decisions or fully make use of its consolidated buying power. Cabinet Office acknowledges that it needs an improvement plan to ensure it is capturing all available data on digital commercial activity in government. The Cabinet Office Permanent Secretary wrote to us after our evidence session saying that within 8 to 10 weeks the Government Chief Commercial Officer would set out to a plan and approach to upskilling his 6,000 staff in digital areas. We look forward to evaluating this. recommendation The Cabinet Office and DSIT should, by Autumn 2025, set out how it will ensure that it has the data and the capability (systems, processes, people) it needs to make more informed decisions about where and how government spends with technology suppliers. This should include data on spending and on the pipeline of supply and demand, to help the centre of government build a more strategic approach to working with technology suppliers. 6
Government Response Summary
The government agrees and will develop a standard framework for procurement platforms and deliver a central digital platform, leveraging data from existing systems. Further detail will be provided to the committee in December, aligning with the implementation date.
Government Response
Accepted
HM Government
Accepted
The government agrees with the committee’s recommendation. from data held across the eco-system, which will include the development of a standard framework for procurement platforms as well as the delivery of the central digital platform, leveraging data held in procurement and back-office systems for use across government. Further detail will be provided to the committee in December, in line with the target implementation date.