Partner Article

Procurement reforms have to "win hearts and minds"

The Government’s procurement strategy reforms are not working as well as they could, due to lack of enforcement around the centralised approach.

A report from the National Audit Office (NAO) suggests the reforms have made progress but ineffective governance structures, unrealistic targets, incomplete data and weaknesses in contract management have hampered implementation.

It suggests the Cabinet Office will need to implement more effective levers, or will have to “win hearts and minds,” to demonstrate that central procurement will work.

Elsewhere, the report notes good progress in expenditure on common goods and services and SME participation.

Price reductions owing to centralisation measures were reported to have made £426m savings between 2011-2012.

Amyas Morse, head of the National Audit Office, said today: “The Cabinet Office will have to lead a major cultural shift across government if the centralising of buying goods and services is to deliver the significant benefits on offer.

“There are signs of real progress, but the success of the reforms cannot depend on whether departments choose to cooperate. Departments must commit as much of their procurement expenditure as possible to central contracts and the Government Procurement Service must be held accountable for its performance.”

The NAO indicates that departments need to make compromises and adapt to a more standardised approach for the reforms to work fully.

This was posted in Bdaily's Members' News section by Tom Keighley .