2.9 The OGC has successfully introduced and established a programme of Gateway reviews. These reviews of significant procurement projects for the responsible department are carried out at key points in the procurement lifecycle by teams of experienced people independent of the programme or project team, to provide assurance that it can progress successfully to the next stage.
2.10 Gateways have made a significant impact on the success rate of these projects. They currently deliver £1 billion in cost savings annually by helping central government organisations deliver their projects and programmes on time and within budget. More needs to be done, however, to ensure that the success rate of programmes and projects rises further, particularly for the largest and most complex procurement projects. A stronger assessment of deliverability is needed at early stages, with stronger support to deal with any concerns those assessments raise. This includes allowing for more upstream thinking about, and scrutiny of, proposed approaches and the transfer of good practice from other projects. Where relevant there should be concept viability market soundings with potential suppliers and research on different potential solutions through demonstrator pilots.
2.11 A Major Projects Review Group will be established, based on the existing approach to the scrutiny of local authority PFI projects. It will be chaired by the Treasury and composed of commercial experts. It will ensure that departments' most significant projects are subject to an effective, enhanced Gateway review process. The OGC will select reviewers for these projects based on the relevance of their skills and experience to the projects concerned. The MPRG's own scrutiny will take place:
• when the business case is being developed, and there is the maximum scope to influence the outcome of a project and approach to procurement before too many issues become set in stone. This can examine if the project meets the business need, is achievable, with a wide enough range of options explored and likely to achieve value for money;
• before the project goes out to tender, to test if the specification of the requirement is clear and unambiguous, all the procurement options have been explored, and there is a realistic prospect of success; and
• following the assessment of bids, but before the award of the contract, to check that the contract decision is likely to deliver what is needed on time, within budget, and value for money.
2.12 The MPRG will be advised by the OGC on the deliverability of new acquisition programmes, and further supported by experienced people with relevant commercial expertise from within government. The MPRG will have the power to stop a procurement project from progressing to the next stage where it feels that there are issues that need urgent correction. But in most cases it will identify specfic issues that need to be resolved by particular stages in its procurement. In these cases, the OGC will provide the department with additional support, or help it get specialist support from elsewhere, if necessary.
More collaboration
2.13 Acting collectively, rather than through separate departmental action, can be an important driver of value for money. Accounting officers have to take account of value for money for the Exchequer as a whole, rather than just the impact of a policy in achieving their own organisational objectives. This is particularly relevant in areas of common spend like commodity goods and services, the development of some critical markets and supplier relationships, and the management of the government estate (described in Box 2.3), as government looks to develop new, shared forms of face-to-face service provision and central services.
Box 2.3: Transforming the civil estate The Government announced a new strategy for the civil estate on 9 November 2006 in High performing property, which defined central government's high level framework and direction to. achieve excellence in property asset management. It focuses on the key actions that need to be taken at the centre and by individual organisations with milestones. The objectives for managing the government estate are closely aligned with those driving better procurement, and the measures set out in High Performing Property reflect this: • a clear and comprehensive approach to the integration of property asset management in the organisation's strategic business delivery and resource management; • clearly defined asset management responsibilities matched by skilled and capable staff, and board level representation where appropriate; • performance measurement and management to deliver continuous improvement; and • maximising the use and operation of an organisation's estate, including early identification and disposal of surplus accommodation, optimum use of buildings and workspace strategies, and delivery against the Government's sustainable operations targets. The document sets out plans for work by the OGC and departments to transform the government estate through four key components: • stronger leadership and integration; • a major new programme of benchmarking and standard-setting; • a drive to develop skills and capability; and • increased powers of review and challenge to the work of departments. Sir David Varney's review of service transformation has added to this a vision for the future of face-to-face service provision. The key elements are: a greater use of mobile service provision; an increase in cross-government one-stop shops; and use of intermediaries. The OGC will work with departments to develop an implementation plan for the relevant proposals in High Performing property and the Varney Review, to be published next year. |
2.14 The OGC will lead on these areas, with powers derived from the Treasury to require departments to comply or agree non-compliance. The OGC will:
• develop coherent strategies for the procurement of commodity goods and services across government;
• work with suppliers to develop the capacity of the market to supply government's demands, taking a more proactive approach, particularly in the ICT and professional services industries; and
• drive the establishment of more cross-government one-stop shops for the delivery of public services where face-to-face service delivery is required, as recommended in Sir David Varney's report on service transformation; and the achievement of value for money gains to be derived from collaborative use of short-term office accommodation.