Source · Select Committees · Public Accounts Committee
Recommendation 34
34
Accepted
Government's static technology requirements and lack of contract agility hinder digital commercial activity
Recommendation
The NAO found that government will need to adopt wide–ranging changes to how it approaches digital commercial activity, which reflect the changing reality of technology markets. For example, it will need to understand its negotiation levers more fully, understand more clearly how the centre of government and departments can work together, and focus more on developing requirements in advance of contract awards.59 The Cabinet Office told us that government “underestimate[s] quite often” the pace at which technology moves on, and as a result comes up with quite static requirements. It accepted that it had not built agility into the way in which contracts move with the technology.60 57 Qq 28–29 58 Qq 28–29 59 C&AG’s Report, paras 10, 12, 14, 17 60 Q 27 21
Government Response Summary
The government accepts the recommendation, committing to updating and launching the Digital, Data and Technology (DDaT) Playbook by December 2025. This updated playbook will provide a comprehensive framework to guide digital commercial activity, focusing on best practices and an outcome-based procurement strategy.
Government Response
Accepted
HM Government
Accepted
3.5 The government agrees with the committee’s recommendation. Target implementation date: December 2025 3.6 The government is taking forward the actions outlined below on which we will update the Committee on progress in December 2025: 3.7 The Digital, Data and Technology (DDaT) Playbook provides a comprehensive framework for managing digital and technology projects within the public sector. The Market Sourcing and Suppliers Team is responsible for the playbook and is working with GDS to launch a publication in December 2025, bringing it up to date with current practices and for adoption across all relevant procurement activities. 3.8 Key points from the Playbook include: • Best Practices: The Playbook consolidates best practice guidelines and policies that help procurement professionals set up projects for success from the outset, minimising the risk of costly mistakes. • Outcome-Based Approach: It emphasises an outcome-based procurement strategy, focusing on delivering value rather than merely reducing costs. This aligns procurement activities with user needs and government priorities. • Market Engagement: The Playbook encourages early engagement with the market, facilitating innovation and collaboration, particularly with SMEs, to harness diverse solutions that meet public sector requirements. • Risk Management: It promotes a balanced approach to risk, ensuring that risks are allocated to those best able to manage them, thereby enhancing project resilience and sustainability. • Continuous Improvement: The DDaT framework supports iterative testing and learning, allowing procurement professionals to adapt strategies and improve service delivery over time. • Compliance and Governance: The Playbook sets out clear governance structures and compliance requirements for central government departments and arm's-length bodies, ensuring transparency and accountability in procurement activities. • Cyber Security and Legacy IT: It includes specific guidelines on cyber security and addressing legacy IT issues, which are critical for safeguarding public data and enhancing operational resilience.