Centralised procurement

One the most frequent suggestions raised in the call for evidence, to address a perceived public sector skills deficit, was a proposal for the greater centralisation and improved professionalism of public sector procurement. International examples of centralised procurement units in countries such as Canada were held up as examples that the UK should follow.

PFI projects are not generally procured by central units but by local authorities, NHS Trusts, Foundation Trusts or central government departments. The first PF2 programme, the Priority Schools Building Programme will, however, be procured by a central unit in the Department for Education, the Education Funding Agency. Other departments with PF2 pipelines will also be encouraged to establish a central procurement unit when they embark on a new programme.

The Government recognises that departmental centralisation of procurement, while representing a significant step forward, does not go as far as establishing a single, centralised procurement unit. The business case for such a unit will be kept under review during the IUK and MPA assessments and when future pipelines are confirmed.