Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Strategic outline business cases serve as crucial intervention points for procurement requirement scrutiny.
Conclusion
We asked about checks and balances which could help ensure that departments are mindful that a mismatch between the procurement and the level of detail in the requirement can undermine the benefits of the competitive process.30 The GCF told us that the key moment of intervention is the strategic outline business case where the Cabinet Office and GCF ask the public authority whether they have an understanding of what is required.31
Government Response Summary
The government agrees with the implicit recommendation and confirms it is already addressed through the Sourcing Playbook, market management guidance, and the Crown Commercial Service's market analysis and engagement.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation Recommendation implemented 2.2 The Sourcing Playbook, published in 2019 and revised annually, sets out best practice on service delivery, insourcing, outsourcing, mixed economy sourcing and contracting. This includes setting out a clear expectation that contracting authorities should undertake an assessment of the health and capability of the market when deciding how to deliver a service. This enables a contracting authority to understand our markets, recognise our influence on them and design commercial strategies and contracts that promote market health, and in turn maximises value for money and service quality. Effectiveness of early market engagement is assessed as part of the commercial continuous improvement assessment framework with a masterclass programme to share best practice. These principles are supplemented by a supporting guidance note on ‘Market Management’ that outlines more detail and practical guidance on the factors to consider when making these assessments. In addition, the Cabinet Office also provides resource and guidance to contracting authorities when they undertake market health assessments. 2.3 The Crown Commercial Service undertakes extensive analysis of supply markets and engages with suppliers to inform its strategies for each of the categories of goods and services in which it establishes commercial agreements. As part of its commercial agreement development process, it then undertakes further supplier engagement to inform the design of specific commercial agreements.