The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Crown Clowns - Procurement Service Shoddy

29 March 2017 | Updated 01 January 1970
 

A Government body set up to save public money by buying common goods and services centrally has delivered disappointing results, says the Public Accounts Committee.

In their report the Committee examines the Crown Commercial Service (CCS), established in 2014 with the aim of centralising £13.4 billion of central government spending and to carry out direct buying services on behalf of all departments.

It was intended to improve government's management of commercial contracts and also provide framework agreements to enable both central government departments and the wider public sector to purchase common goods and services.

 

Only £2.5 billion of spending managed instead of £13 billion

The Committee concluded the creation of CCS was poorly executed and progress in centralising procurement has been slow, with CCS only managing £2.5 billion of spend on behalf of seven departments instead of the £13 billion, on behalf of all 17 departments, predicted in 2014.

The overall performance of CCS has been poor, says the Committee, which highlights the fact it 'did not have detailed plans from the start setting out how it would collaborate with departments, and failed to gain their confidence'.

The Committee also found the CCS's management of procurement frameworks remains unsatisfactory and its current governance structure is 'confusing, blurs accountability and reduces clarity of its purpose'.

 

Spending should be transferred as soon as practicable

Among its recommendations to Government, the Committee calls for action to ensure all departments understand the importance of achieving savings from centralised purchasing 'and transfer appropriate spending to CCS as soon as practicable'.

Meg Hillier MP, Chair of the Committee, said: "Government really needs to sharpen up if this latest attempt to centralise buying is to function properly.

"The Crown Commercial Service was set up with the intention of saving public money. But so far it is only managing around a fifth of the spending it expected to and is a long way from achieving its potential.

"This is a dismal showing that calls into question exactly how willing Government departments are to accept the authority of the Cabinet Office in this area.

"There were clearly fundamental problems at the launch of CCS but even now it is unclear exactly how progress will be made during this Parliament and beyond. 

"Meanwhile the taxpayer is losing out."

Picture: A Public Accounts Committee report says that the Cabinet Office must ensure departments buy-in to system intended to save taxpayers' money

Article written by Brian Shillibeer | Published 29 March 2017

Share



Related Articles

Mace Construct and Willmott Dixon Jointly Appointed to ProCure23 Framework

Mace Construct and Willmott Dixon have been jointly appointed by the Crown Commercial Service to all three lots of the NHS ProCure23 Framework. The appointment will...

 Read Full Article
Engie Gets Crown Posting

Engie has been named as a supplier on Lot 6 of the new Crown Commercial Service RM6017 Postal Goods, Services and Solutions framework. This provides the public...

 Read Full Article
RICS & IFMA Launch Procurement Of FM Professional Statement

The morning of July 25 saw RICS & IFMA launch their Procurement of Facility Management Professional Statement, UK 1st edition. The aim - to increase trust and reduce...

 Read Full Article
MPs’ COVID-19 Report Calls on Minimum Standards for Hygiene Infrastructure

MPs are recommending a series of measures to prepare the UK for future public health emergencies, resulting from an inquiry into the role of cleaning during the COVID-19...

 Read Full Article
Mitie, Compass and Wates Group Among FM Firms to Support Buy Social Corporate Challenge

30 UK businesses have spent £250 million procuring services and products from social enterprises and helped create 2,700 jobs in an ongoing programme from Social...

 Read Full Article
Planet Mark Launches Free Sustainability Toolkits 

Planet Mark, the sustainability certification, has created a series of free toolkits to help any size of business start on their sustainability...

 Read Full Article
Equinoxe Solutions Acquired By Compass Group

Compass Group UK & Ireland has acquired Equinoxe Solutions, which will sit within Foodbuy, Compass’ procurement business. Equinoxe Solutions, based in Essex,...

 Read Full Article
Delivering Great FM Services Relies on Successful Mobilisation

The success of FM services is all in the mobilisation phase, where the partnership between the service provider and customer sets the tone for the future, says Densrienne...

 Read Full Article
Bouygues and Equans Offer Proposals to Address CMA’s HS2 Contract Concerns

In the latest update of the Competition and Markets Authority’s inquiry into a possible breach of competition law by the merger of Bouygues and EQUANS, the two...

 Read Full Article
A Quarter of UK Construction Companies Have Experienced Fraud Over the Last Year

A survey report on fraud in the construction industry reveals the most common experiences and negative impacts on businesses in the UK. Data collected from the Fraud...

 Read Full Article