Value for Money

Government's approach to technology suppliers: addressing the challenges

Published 16 January 2025 8 recommendations nao.org.uk

Recommendations (8)

Source: NAO Recommendations Tracker
5
Accepted
5
In Progress
5
NAO Confirmed
3
Awaiting Response
Cabinet Office; Department for Science, Innovation and Technology
Rec 1 Accepted Work in Progress
In view of government?s decision to locate responsibility for the digital centre in DSIT, to provide effective leadership for government?s digital commercial activities, the digital centre, GCF and CCS should consider who should take responsibility for addressing the issues in this report and the recommendations below: a) decide who should take ownership of the strategic relationship with suppliers and responsibility for collecting and analysing data about government?s overall digital commercial activities, ensuring clarity on what is done centrally to gather demand and supply data, assessing the demand pipeline against supplier capacity and evaluating what that means for government?s use of suppliers;
Page 12, paragraph 23, point a, first bullet point 12/2025
Cabinet Office; Department for Science, Innovation and Technology
Rec 2 Accepted Work in Progress
b) produce a sourcing strategy including how government is better able to maximise its ability to negotiate with ?big tech? and strategic suppliers;
Page 12, paragraph 23, point b, second bullet point 12/2025
Cabinet Office; Department for Science, Innovation and Technology
Rec 3 Accepted Work in Progress
e) address recruitment shortfalls and develop a plan to better equip and train decision-makers with responsibility for initiating digital commercial and contracting. This should include education on legacy data and systems, the importance of understanding the business requirement at a sufficient level of detail, and the risks of ?build before buy? and of opting for unproven technology.
Page 13, paragraph 23, point e, fifth bullet point None given
Cabinet Office; Department for Science, Innovation and Technology
Rec 4 Accepted Work in Progress
c) identify what actions it needs to take to secure improvement in governance, processes, guidelines and supplier engagement, to ensure that contracts for different categories of digital activities reflect a planned approach that addresses the business problem to be solved;
Page 13, paragraph 23, point c, third bullet point 12/2025
Cabinet Office; Department for Science, Innovation and Technology
Rec 5 Accepted Work in Progress
d) work with departments to identify what further negotiation levers they would find useful beyond headline volume and pricing agreements. This should include guidance for contracts for digital procurement setting out how best to navigate options and negotiate on aspects such as payment terms and flexibility to ensure that departments are not paying more than necessary;
Page 13, paragraph 23, point d, fourth bullet point None given
Cabinet Office; Department for Science, Innovation and Technology
Rec 6 Response Pending
Individual departments and public bodies should: f) ensure that CDIOs are responsible for overseeing commercial contracting involving technology suppliers, supported by their own departmental digital commercial teams. Large digital change programmes should not have business cases approved and contracts agreed without digital experts agreeing that requirements have been properly understood and articulated and are deliverable;
Page 13, paragraph 24, point f, first bullet point
Cabinet Office; Department for Science, Innovation and Technology
Rec 7 Response Pending
g) strengthen their intelligent client function for digital change to identify and develop key requirements before tenders and bid processes commence, improve how policymakers and technical specialists work together with procurement specialists, and ensure that digital specialists take the lead on technical supplier engagement;
Page 13, paragraph 24, point g, second bullet point
Cabinet Office; Department for Science, Innovation and Technology
Rec 8 Response Pending
h) set up the capability needed to improve data and processes to inform decision-making, including a pipeline of supply and demand to help the centre of government in building a more strategic approach to suppliers.
Page 13, paragraph 24, point h, third bullet point