Lessons learned: competition in public procurement

Public Accounts Committee Closed Inquiry
Opened: 27 Jul 2023 Closed: 8 Mar 2024 Parliament page
The Government is committed to supplier competition in its £259 billion procurement spending, but could deliver significant savings by better understanding how departments use competition in practice. The Committee’s recent reports on Improving the performance of major defence equipment contracts and Local auditor reporting on local government in England highlighted … Read more
17 Recommendations
20 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 7 events
8 Mar
2024
Report published
5 Feb
2024
Correspondence
29 Jan
2024
Correspondence
29 Jan
2024
Correspondence
13 Dec
2023
Report published
23 Oct
2023
Oral evidence
23 Oct
2023
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 1 session
23 Oct 2023
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Lessons learned: competition in public procurement
Gareth Rhys Williams · Crown Commercial Service Simon Tse · Crown Commercial Service Sir Alex Chisholm · Cabinet Office
Title HC No. Published Items Response
Sixth Report - Competition in public procurement HC 385 13 Dec 2023 37 Responded
Recommendations & Conclusions
37 results
2 Recommendation Accepted
Sixth Report - Competition in publ…
Publish guidance and mechanisms for public authorities to conduct appropriate early supplier engagement.
Public authorities have often not been effective in engaging with markets and potential suppliers, and government has not provided clear guidance on how to meet requirements to treat suppliers equally while best supporting value for money. Departments and other public … Read more
Government Response
The government agreed with the recommendation, stating it is already implemented through the annually revised Sourcing Playbook, which sets best practices for market assessment and early engagement, supplemented by a 'Market Management' guidance note, with the Crown Commercial Service undertaking extensive market analysis.
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3 Conclusion Acknowledged
Sixth Report - Competition in publ…
Issue a 'Framework Playbook' to guide government buyers on managing framework agreements effectively.
Framework agreements have become the most prevalent route for public authorities to buy common goods and services, but the Government Commercial Function has not provided sufficient guidance to address the potential risks to competitive benefits. Framework agreements involve an initial … Read more
Government Response
The government agreed with the recommendation, stating it is reviewing current framework guidance and will determine whether a separate 'Framework Playbook' is required or if existing guidance will be augmented to ensure clear central guidance on framework management.
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4 Recommendation Accepted
Sixth Report - Competition in publ…
Update Sourcing Playbook to balance socio-economic benefits with SME access to public contracts.
Government has not demonstrated that it has consistently used its purchasing power to support local and national policies and objectives, or to drive healthy and competitive markets, including buying from SMEs. Government could not provide evidence that it is consistently … Read more
Government Response
The government agreed with the recommendation, stating it will revise the Sourcing Playbook during 2024 in line with the Procurement Act 2023, and anticipates the first statutory National Procurement Policy Statement (NPPS) will be in place later in 2024.
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5 Recommendation Accepted
Sixth Report - Competition in publ…
Publish plans for Procurement Act 2023 implementation, costs, and commercial capability development.
We are concerned that the government may not have sufficiently considered the time, money, and resources required to provide the commercial capabilities to successfully implement the Procurement Act 2023. The Procurement Act received Royal Assent on 26 October 2023. Government … Read more
Government Response
The government agreed with the recommendation, stating the Procurement Act 2023 regime is anticipated to go-live in October 2024 and it has a transition plan in place. It is already rolling out centrally-funded learning interventions for buyers, including recorded 'knowledge drops'.
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1 Conclusion Accepted
Sixth Report - Competition in publ…
Committee heard evidence on government's competitive procurement of goods and services.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Government Commercial Function (GCF) and the Crown Commercial Service (CCS) about the government’s purchase of goods and services through competitive … Read more
Government Response
The government agreed with the procedural conclusion and provided an update on the Procurement Act 2023, detailing new legal requirements for contracting authorities to upload procurement information, plans for secondary legislation by Spring 2024, and the anticipated National Procurement Policy Statement later in 2024.
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6 Recommendation Accepted
Sixth Report - Competition in publ…
Poor quality of government's published contract data reduces transparency and hinders best practice.
The poor quality of much of government’s published data on contracts reduces transparency and makes it harder to identify and promote best practice. Better information would allow government to analyse how many contracts different departments award to small and medium … Read more
Government Response
The government accepts the recommendation, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance to follow, addressing poor data quality and promoting transparency.
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7 Recommendation Accepted
Sixth Report - Competition in publ…
Cabinet Office lacks analysis of competition and single bidder trends in major procurement markets.
The Cabinet Office’s central commercial teams also collect some aggregate contract information from departments’ own data systems. It uses this data for some analysis of overall trends, but does not use the more detailed contract information to conduct any analysis … Read more
Government Response
The government accepts the recommendation, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance to follow, which will provide a better transparency platform for bidder information.
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8 Recommendation Accepted
Sixth Report - Competition in publ…
Existing procurement data is incomplete, hindering effective analysis and comparison by government.
We asked the CCS why the existing procurement information does not seem to be used effectively to improve procurement or analyse competition in the marketplace.14 CCS told us that there is some information in the databases, but the information is … Read more
Government Response
The government accepts the recommendation, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance to follow, which will enable better use of procurement data.
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9 Recommendation Accepted
Sixth Report - Competition in publ…
Inconsistent supplier identities in databases hinder procurement, requiring a single unified system.
The GCF explained that part of the problem is that because multiple contracting authorities can enter data on suppliers, the same supplier could have different identities in today’s database. The GCF expects that a single supplier information database would address … Read more
Government Response
The government agrees with the recommendation, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance to follow, which will address the issue of inconsistent supplier data.
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10 Recommendation Accepted
Sixth Report - Competition in publ…
Significant gaps in public procurement data quality and completeness remain despite ongoing improvements.
While government is moving towards improving the quality and completeness of public procurement data, there remain significant gaps in the data.20 The Cabinet Office told us that government expects the Procurement Act to help address data issues, alongside the implementation … Read more
Government Response
The government agrees with the recommendation to address significant data gaps, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance.
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11 Conclusion Accepted
Sixth Report - Competition in publ…
Single supplier database will primarily benefit suppliers, particularly SMEs, through cost savings.
We wanted to know whether the move to a single database will save money. The GCF told us that government will not save much money, but suppliers will save money. The GCF highlighted that it is annoying for suppliers, particularly … Read more
Government Response
The government agrees and commits to implementing a central digital platform by Spring 2025, which will require contracting authorities to upload procurement information under the new Procurement Act, addressing the issue of multiple registration systems for suppliers.
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12 Recommendation Accepted
Sixth Report - Competition in publ…
Data migration to the single supplier database is manageable but critical for KPI tracking.
Given the move to a single supplier database we were interested to hear the challenges government foresaw with the transfer of data to the new system. The GCF commented that there are 10,000 contracts and 20 fields per contract on … Read more
Government Response
The government accepts the recommendation, stating that new legal requirements under the Procurement Act will mandate data upload to a central digital platform by Spring 2025, with secondary legislation laid in Spring 2024 and supporting guidance to follow.
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13 Conclusion Accepted
Sixth Report - Competition in publ…
Departments inconsistently follow market engagement guidance and are unclear on pre-contract interaction.
Departments have opportunities throughout the lifecycle of a contract to improve the effectiveness of competition. Making the most of the opportunities available through competition starts from departments designing realistic requirements for goods or services and using these to inform their … Read more
Government Response
The government agrees with the implicit recommendation, stating that it is already implemented through the Sourcing Playbook and Market Management guidance, which provide best practice, resources, and assessment frameworks to improve early market engagement and requirement design.
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14 Conclusion Accepted
Sixth Report - Competition in publ…
Government often fails to adequately understand market capabilities before designing procurement requirements.
The GCF told us that it accepted all of the recommendations of the NAO report, and welcomed the recommendation that the Cabinet Office, GCF and CCS work with departments to understand the barriers to early market engagement and take steps … Read more
Government Response
The government agrees with the implicit recommendation and states that it is already implemented through existing measures like the Sourcing Playbook, which sets expectations for market health assessment, and resources provided by the Cabinet Office and Crown Commercial Service.
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15 Conclusion Accepted
Sixth Report - Competition in publ…
Strategic outline business cases serve as crucial intervention points for procurement requirement scrutiny.
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 … Read more
Government Response
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.
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16 Conclusion
Sixth Report - Competition in publ…
DfE awarded single-supplier contract for free school meals without sufficient capacity evidence.
In 2020 the Department for Education’s (DfE) management of the free school meals voucher scheme during the covid-19 pandemic, was an instance where further information would have been valuable to help manage the risks of the project. DfE awarded a … Read more
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17 Recommendation Accepted
Sixth Report - Competition in publ…
CCS employs sector experts to monitor market competition and identify areas with thin supply.
We asked what mechanisms were in place to look at a sector and identify where perhaps the market is “thin” in terms of competition and there are too few bidders or perhaps the suppliers that come through are not as … Read more
Government Response
The government accepts the recommendation, outlining that the Sourcing Playbook will be revised in 2024 in line with the Procurement Act, and the first statutory National Procurement Policy Statement is anticipated later in 2024, all aimed at ensuring competitive markets and supplier engagement.
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18 Recommendation Accepted
Sixth Report - Competition in publ…
Non-mandatory use of CCS frameworks hinders competition for government buyers in low-value procurement.
The CCS told us about the work they are doing to bring more suppliers in with some of its frameworks like the technology-based G-Cloud framework. The CCS commented that 99% of business done through G-Cloud is below £5 million, but … Read more
Government Response
The government accepts the recommendation, outlining that the Sourcing Playbook will be revised in 2024 in line with the Procurement Act, and the first statutory National Procurement Policy Statement is anticipated later in 2024, all aimed at ensuring fair competition and a level playing field for SMEs.
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19 Conclusion Accepted
Sixth Report - Competition in publ…
Cabinet Office addresses excessive supplier concentration in critical sectors like defence to improve competition.
The Cabinet Office told us that particularly in defence and similar areas, departments might say, “I know who would be bidding for that”. The challenge then is to go out into the international market or look into the smaller providers … Read more
Government Response
The government states the recommendation is implemented, highlighting existing policies like the Sourcing Playbook and Procurement Policy Notes, which ensure fair competition and a level playing field for SMEs, and notes the Sourcing Playbook will be revised in 2024 in line with the Procurement Act.
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20 Conclusion Accepted
Sixth Report - Competition in publ…
Government's increasing reliance on framework agreements doesn't always guarantee best competition.
Framework agreements involve an initial competition for suppliers to gain access to the framework, followed by a shortened process for a department to select and appoint a supplier from the framework for a specific contract.36 Government use of frameworks for … Read more
Government Response
The government agrees and commits to reviewing current framework guidance, determining whether a separate framework playbook is required, and ensuring clear central guidance, including the collection of performance data, by Autumn 2024.
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21 Conclusion Accepted
Sixth Report - Competition in publ…
A proliferation of procurement frameworks exists, with varying quality and insufficient differentiation.
The GCF commented that frameworks are growing and highlighted that there is a distinction between good and bad frameworks as well as too many frameworks. The GCF told us that on one count, procurement organisations together offer around 8,000 construction … Read more
Government Response
The government agrees and commits to reviewing current framework guidance with stakeholders, determining if a separate playbook is required, and ensuring clear central guidance for framework establishment and management, including data collection, by Autumn 2024.
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22 Conclusion Accepted
Sixth Report - Competition in publ…
Framework agreements are a significant but not sole government procurement vehicle needing proper utilisation.
The CCS agreed that there is a pronounced trend, in terms of value, to increasing use of framework agreements moving from other competitive procedures defined in the Public Contracts Regulations 2015. However, CCS did not consider that they were the … Read more
Government Response
The government agrees and commits to reviewing current framework guidance, determining whether a separate framework playbook is required, and ensuring clear central guidance, including the collection of performance data, by Autumn 2024.
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23 Conclusion Accepted
Sixth Report - Competition in publ…
Lacking accurate cost-benefit analysis and transparency for direct awards from procurement frameworks.
The NAO report identified the need for accurate analysis of costs and benefits to both inform decisions and provide potential suppliers enough information to price bids accurately.42 The GCF told us that it is fair to say that there is … Read more
Government Response
The government agrees and commits to reviewing current framework guidance with stakeholders, determining if a separate playbook is needed, and ensuring clear central guidance for framework establishment and management, including data collection, by Autumn 2024.
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24 Conclusion Accepted
Sixth Report - Competition in publ…
Government prioritises competition within frameworks, encouraging mini-competitions for optimal pricing outcomes.
The CCS commented that government has not extended any frameworks other than during the time of the pandemic. The CCS’s believes that bringing the framework back to market and getting competition is the right thing to do. We were told … Read more
Government Response
The government agrees with the recommendation, setting an implementation target of Autumn 2024. It is currently reviewing framework guidance and standards with stakeholders, and will subsequently determine if a separate framework playbook or augmented guidance is needed to ensure effective establishment and management of frameworks, including data collection.
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25 Conclusion Accepted
Sixth Report - Competition in publ…
Framework contract publishing requirements are currently limited to central government organisations.
We asked the GCF whether there was a requirement for departments to publish all contracts awarded off a framework. The GCF described that there are such requirements but that full contract publishing currently only applies to central government. The GCF … Read more
Government Response
The government agrees with the implicit recommendation, stating that the Procurement Act will introduce legal requirements for contracting authorities to publish contract data to a central digital platform, with secondary legislation expected in Spring 2024 and full implementation by Spring 2025.
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26 Recommendation Accepted
Sixth Report - Competition in publ…
Efforts to enhance SME access to frameworks show progress, with dynamic purchasing systems offering future potential.
We asked how government would ensure that it was not creating barriers preventing SMEs from getting on frameworks. The GCF commented that SME spend has increased from £11 billion in 2016–17 to £21 billion last year. CCS and the GCF … Read more
Government Response
The government accepts the recommendation, stating the Sourcing Playbook will be revised in 2024 in line with the Procurement Act, and the first statutory National Procurement Policy Statement (NPPS) is anticipated later in 2024, all to ensure a level playing field for SMEs.
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27 Recommendation Accepted
Sixth Report - Competition in publ…
Government procurement mandates specific supplier requirements to advance broader social and environmental objectives.
The NAO report highlighted the value of departments considering how a contract will contribute to meeting key social priorities such a fighting climate change, creating jobs and promoting innovation.48 We questioned how much consideration has been given to using government’s … Read more
Government Response
The government agrees with the recommendation, stating it is implemented through existing commercial policy outlined in the Sourcing Playbook and Procurement Policy Notes. These policies already mandate considerations for social priorities like fighting climate change and social value, and will be further integrated with the Procurement Act 2023 and the forthcoming NPPS.
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28 Conclusion Accepted
Sixth Report - Competition in publ…
Government policy allocates at least ten percent of contract evaluation to social value criteria.
The GCF told us that the “next level down” of issues are things that could be covered in the social value elements of the contract. The GCF commented that at least 10% of the evaluation criteria for contracts should be … Read more
Government Response
The government agrees with the implied recommendation and states it has implemented a minimum 10% weighting for social value in bids. This policy, developed through public and SME consultations, is outlined in its commercial policy and will be integrated into the revised Sourcing Playbook and forthcoming NPPS.
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29 Recommendation Accepted
Sixth Report - Competition in publ…
Smaller businesses face significant barriers in tendering due to contract size and guarantee requirements.
We have previously commented, in our report on transforming rehabilitation, that the MOJ had frozen voluntary sector organisations out of the bidding because they were unable to provide the onerous Parent Company Guarantees required to tender for the contracts.51 We … Read more
Government Response
The government agrees with the recommendation, stating it is implemented through existing and upcoming policy frameworks like the Sourcing Playbook and NPPS. It highlights that ensuring a level playing field for SMEs and VCSEs is a key component of government commercial policy, referencing past consultations during social value policy formulation.
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30 Recommendation Accepted
Sixth Report - Competition in publ…
Embedding social value in small contracts remains challenging for businesses.
However, for contracts that are too small to be able to fund a certain number of apprentices, it is difficult to sensibly embed social value. We wanted to hear how government is planning to review this or engage with small … Read more
Government Response
The government agrees with the recommendation and states it is implemented through existing and upcoming policy frameworks like the Sourcing Playbook and NPPS. It highlights that ensuring a level playing field for SMEs and VCSEs is a key component of government commercial policy, referencing past consultations during social value policy formulation.
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31 Conclusion Accepted
Sixth Report - Competition in publ…
Diverse metrics available to assess public procurement transformation success.
On how it might know whether efforts to transform public procurement have been successful, the GCF told us that government could look at the number of challenges they get and the number of disputes. The GCF noted that alternatively government … Read more
Government Response
The government will implement new legal requirements in Spring 2024 for contracting authorities to upload procurement information, including KPIs, to a central digital platform. It also anticipates publishing the first statutory National Procurement Policy Statement later in 2024 to set strategic priorities.
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32 Recommendation Accepted
Sixth Report - Competition in publ…
Effective implementation of new Procurement Act requires quality data collection.
The new Procurement Act 2023 will be in due course be accompanied by the replacement of the current Public Contracts Regulations 2015 and related statutory instruments made under the previous primary legislation. The Act reflects principles of proportionality, transparency and … Read more
Government Response
The government agrees with the recommendation and states the Procurement Act 2023 will go live in October 2024. It is rolling out learning interventions to train buyers on the new legislative framework and has a plan for transition.
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33 Conclusion Accepted
Sixth Report - Competition in publ…
Government Commercial College delivers widespread training to public procurement staff.
The GCF told us that there is a constant drumbeat, in its commercial function calls, on the training programme, so that all public bodies, such as local authorities and health authorities know about the training. The GCF commented that there … Read more
Government Response
The government confirms the recommendation is implemented, outlining its current and forthcoming four-part learning and development programme for the Procurement Act, including various training interventions designed to reach a wide audience across public sector bodies.
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34 Recommendation Accepted
Sixth Report - Competition in publ…
Departments demonstrate varying success in public procurement and supplier appointment.
We have many departments coming before us with varying degrees of success appointing commercial suppliers via public procurement processes and delivering effective outcomes. We have previously recommended, in our report on Green Homes Grant voucher scheme, how the Department for … Read more
Government Response
The government agrees with the recommendation and states it is already implemented through existing measures like the Sourcing Playbook, which sets out best practices for assessing market health and supplier capability during procurements.
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35 Conclusion Accepted
Sixth Report - Competition in publ…
Government Commercial Function actively improves departmental performance through workshops and learning.
We asked how government is going to improve performance of all departments. The GCF told us that it is considering how to monitor capability through standards, and then benchmarking and workshops. The GCF said that central government has a very … Read more
Government Response
The government confirms the recommendation is implemented, detailing its four-part learning and development programme for the new Procurement Act, which includes knowledge drops, e-learning, interactive webinars, and communities of practice, to improve capabilities and adherence to standards.
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36 Conclusion Accepted
Sixth Report - Competition in publ…
GCF uses professional standards and assessment centres to enhance commercial staff competence.
The GCF told us that there are professional standards that assess whether the learning curriculum is working. The GCF commented it was one of the first government functions to introduce professional standards. The GCF explained that it assesses commercial staff … Read more
Government Response
The government states the recommendation is implemented, detailing its ongoing four-part learning and development programme to train contracting authority buyers on the new Procurement Act, reinforcing efforts to develop commercial expertise and improve standards.
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37 Conclusion Accepted
Sixth Report - Competition in publ…
Extensive training programme prioritised for implementation of the new Procurement Act.
The GCF told us that the priority for implementing the new Act is training and said that it had a training programme ready to roll out from December. The GCF commented that it expects that the Act will be implemented … Read more
Government Response
The government confirms the recommendation is implemented, detailing its four-part learning and development programme, including knowledge drops, e-learning, instructor-led courses, and communities of practice, which are already being rolled out to prepare for the Procurement Act's go-live in October 2024.
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Government Response AI assessment · 36 of 17 classified
Accepted 35
Acknowledged 1
Total 17 recs + 20 conclusions
Correspondence 3 letters
5 Feb 2024 Correspondence from Gareth Rhys Williams CB, Government Chief Commercial Officer and Non-Executive Director, Crown Commercial Service, re Competition in public procurement session, dated 1 November 2023
Parliament page
29 Jan 2024 Correspondence from Gareth Rhys Williams, Government Chief Commercial Officer, Cabinet Office, re Competition in Public Procurement inquiry, dated 11 January 2024
Parliament page
29 Jan 2024 Correspondence from Dame Meg Hillier, Chair of the Committee of Public Accounts to Gareth Rhys Williams, Chief Executive Officer, re Competition in public procurement, dated 26 January 2024
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