21 We have set out above the transformation needed in government's management of its contracts. We make 2 recommendations to the centre of government (HM Treasury and the Cabinet Office) aimed at ensuring that these come about:
a The Cabinet Office should set up a cross-government programme to improve contract management, building on the work of the Markets for Government Services (Officials) group. This will help to formalise existing arrangements and help to make improvement plans more sustainable. Departments' programmes are not joined up and central departments have not coordinated a formal programme, supported by appropriate management techniques. Given the culture change required and the need to sustain efforts across government, the programme should be part of the Major Project Authority's portfolio. The Cabinet Secretary, the Head of the Civil Service and government's Chief Procurement Officer should champion better contract management, especially to senior managers outside the commercial function.
b HM Treasury and the Cabinet Office should continue to use commercial capability reviews to ensure reforms are embedded. Our 2008 good practice framework gives a reasonable guide to the basic administration and governance every contract needs. The current departmental reforms are creating a common understanding of good practice in the organisational governance, systems and structures, information and capability needed for effective contract management (Figure 5 on page 25). Given current progress, we would expect all departments to have these in place by the end of 2015. The commercial capability reviews should also cover the Crown Commercial Service (CSS). The CCS needs to integrate its contract management processes with these new arrangements within departments. The Cabinet Office should measure the CCS's success by its ability to meet departments' needs.