Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Departments are strengthening digital procurement to balance centralisation and SME opportunities.
Conclusion
We questioned DSIT and the Cabinet Office on how they were strengthening digital procurement in government to support competition and innovation. They told us these issues were an ongoing challenge and that they wanted to find a balance between guiding procurement centrally without stifling opportunities to buy locally from SMEs.54 Measures they are taking include setting up a digital commercial centre of expertise to ensure that they build the expertise they need.55
Government Response Summary
DSIT will publicly articulate an AI procurement framework, aligned with the overarching digital technology sourcing strategy, with a focus on Digital Partnerships and collaboration with Crown Commercial Service. DSIT will also help technology and procurement professionals work in a unified manner through training and support resources.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: DSIT and Cabinet Office have a long way to go to strengthen the government’s approach to digital procurement to ensure value for money and a thriving AI supplier market. 5. PAC recommendation: DSIT, in collaboration with Cabinet Office, should set out publicly how its proposed AI sourcing and procurement framework will: • get the best from all suppliers in a market dominated by a small number of global technology companies and ensure opportunities are available for small suppliers; • align with the overarching digital technology sourcing strategy (on how government builds, buys and partners) that the Blueprint for modern digital government promises; • leverage government’s spending power to achieve value for money for citizens; • Ensure those taking procurement decisions across government have access to the right digital skills and knowledge. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2026 5.2 The Digital Commercial Centre of Excellence (DCCoE), drawing on resources from DSIT, Cabinet Office/Crown Commercial Service and departments, will define the government's digital procurement strategy, with a particular focus on AI sourcing. The DCCoE’s mission is to leverage the combined procurement power of the government, to secure best value and stimulate a competitive environment for all suppliers. 5.3 To achieve this, DSIT will publicly articulate an AI procurement framework, designed to transparently outline how the government will engage a diverse range of suppliers. This framework will be aligned with the overarching digital technology sourcing strategy as envisaged in the Blueprint for Modern Digital Government including: • A focus on Digital Partnerships leveraging resources from across government to develop relationships and supporting agreements with suppliers. • Collaboration with Crown Commercial Service to develop the quality, relevance and accessibility of procurement agreements for AI tools and services. 5.4 Additionally, DSIT will help technology and procurement professionals across government to work in a more unified manner, aligning the functional strategies and driving collaboration, knowledge and raising digital and commercial skills. This will include training and support resources, such as The AI Playbook for HM Government, AI Accelerator and the AI Community of practice.