1.12 In October 2013 the Chancellor of the Exchequer asked the Head of the Civil Service and the Cabinet Secretary to chair a group, 'Markets for Government Services (Officials)' (MGS(O)).20 The new group would coordinate the government response to the G4S and Serco revelations. The group comprised accounting officers from the major spending departments and senior officials from the Cabinet Office and HM Treasury. Its role has evolved:
• Between October 2013 and February 2014 MGS(O) met weekly to coordinate the government's settlements with G4S and Serco.
• Since February 2014 MGS(O) has met monthly to coordinate the government's strategic response to market supply and development; contingency planning; commercial capability; strategic supplier management; government relations with ICT suppliers; strategic planning for ICT contracts; and transparency.
Figure 4 Recommendations of the cross-government review | ||
Theme 1 Internal audit | Central action Greater integration of internal audit functions between departments (as set out in the Review of Financial Management in government)1 | Action for departments Internal audit should improve capability so it can review major contracts |
2 Commercial director's role | - | Commercial directors should have responsibility for contract management as well as procurement More senior assurance on contract changes More links between finance and commercial throughout the life of a contract |
3 Leading the commercial profession | Crown Commercial Service (CCS) to focus more on leading the profession The Chief Procurement Officer should contribute to recruitment and performance management of departments' commercial capability | - |
4 Contract management capability | CCS to develop its contract management capability so it can set standards and advise departments | - |
5 Contract management plans and review | - | Commercial director to approve contract management plans before any new award Senior responsible owners (SROs) appointed for major contracts SROs should review, refine or develop contract management plans for all existing major contracts |
6 Central support for departments | Evaluate whether to 'step in' and help departments manage major contracts | - |
7 Supplier relationships | Central management of relationship with strategic government suppliers | Departments to manage other suppliers, seeking input from CCS where required |
8 Implementation plans | CCS to develop detailed plans for recommendations 3 to 7 | Departments to develop detailed plans for implementing recommendations by the end of February 2014 |
Note 1 HM Treasury, Review of Financial Management in government, December 2013. Source: National Audit Office analysis of recommendations in the cross-government review | ||
1.13 MGS(O) includes the accounting officers from all the main departments involved. Each individual accounting officer remains responsible for their own department's decisions. MGS(O)'s initiatives are not part of a programme and do not include management techniques such as an integrated plan, budget, or benefit realisation. HM Treasury or the Cabinet Office (including the new Crown Commercial Service) lead each initiative, and departments manage their own change management programmes. The Cabinet Office Board separately oversees the Crown Commercial Service.
____________________________________________________________________________________________________
20 Officially, the 'ad hoc officials committee on markets for government services', under the ministerial Cabinet sub-committee 'markets for government services'.