The government has introduced an ‘outsourcing playbook’ in a bid to improve public sector procurement in the wake of the collapse of Carillion.
The playbook will be launched today by cabinet office minister, Oliver Dowden.
The government said the playbook guidance will ensure it gets more projects right from the start, as well as ensuring it engages with a “diverse and healthy marketplace” of companies, including small businesses and charities, and is ready for when things go wrong.
It sets out changes to how government allocates risk between itself and its suppliers, while new complex contracts will be piloted with the private sector before rolling out fully, enabling the government to learn from experience under the plans.
It also demands that KPIs from every new outsourcing contract will be made publicly available and that ‘living wills’, which allow another business to step in after a contractor’s collapse, should apply to public contractos.
Departments will also be required to regularly publish their upcoming requirements, to help suppliers plan ahead.
The playbook’s publication follows procurement reforms announced by minister for the Cabinet Office David Lidington, who called for social values to be put at the heart of public service delivery.
‘Value for money’
In a speech to business leaders at the CBI today, Oliver Dowden is expected to say: “Outsourcing can deliver significant benefits, including value for money and more innovative public services. Our new measures will improve how the government works with industry and provide better public services for people across the country."
“I can today provide reassurance that the playbook makes explicit that when designing contracts, departments must seek to mitigate, reduce and then allocate risks to the party best able to manage it.
“A more considered approach to risk allocation will make us a smarter, more attractive client to do business with.”
Jon Lewis, the CEO of Capita, one of the suppliers which government worked with to develop the new measures, said:
“Capita is working closely with government to develop these reforms. This is a sea-change, both recognising the vital contribution the private sector makes in delivering first-rate public services and then finding ways to do this even better.
“These new ways of working will place a stronger focus on establishing partnerships based on mutual trust and a joint focus on positive outcomes. This is fundamental to the successful procurement and delivery of public sector contracts.”
