Commercial awareness

4.4  The achievement of better outcomes for less is dependent on a cadre of suitably experienced commercial staff who can devise strategies for improving value from programmes and projects. The establishment of Private Finance Units to advise PFI project teams is an example which may be relevant to other areas of procurement. Achieving better outcomes for less also requires an ability to work collaboratively with the private sector. NHS Local Improvement Finance Trusts, for example, also act entrepreneurially to build local partnerships between public bodies, such as NHS Trusts and local authorities, and think creatively about the needs of their local area to help bring about the co-location of services.

4.5  Shortages of staff with appropriate commercial skills and experience placed the public sector at a disadvantage when managing contracts and negotiating contract variations. As we reported in 2008, this can result in opportunities for securing better value for money being missed and risk may not be managed effectively.45




_________________________________________________________________________

45  Comptroller and Auditor General, Central government's management of major service contracts, Session 2008-09, HC 65, National Audit Office, December 2008.