2.17 Because departments do not see contract management as a way to enhance services and make efficiency savings, they have no way to measure its value. This has made it hard to make the business case to invest in contract management teams, training and skills. Contract management teams have seen cuts in recent years and funding for administration is likely to be further reduced in the next parliament.
2.18 Procurement has been seen as a low-status profession in the civil service. It has few senior positions and most procurement professionals do not work with ministers and senior management. There have not been the career paths to ensure those working on commercial issues have the experience necessary. The result has been a clear divide between those trained-up through the civil service and those brought in from outside. Relatively few within the civil service have the ability to negotiate with contractors on an equal basis.
2.19 This low status has meant the commercial profession has not been well placed to disseminate best practice across government. Business owners of contracted-out services have often only looked to the commercial profession for advice on navigating EU procurement rules, tendering protocols and major renegotiations of contracts. They have not worked with them to get best value from the contract when the services are in operation.
2.20 There have been many attempts in the past to improve the commercial capability of government. These have included investment in professional qualifications, bringing in outside experts and rolling out commercial awareness training. These will continue and have an important part to play in improving the management of contracts.
2.21 But the reality is that government is unlikely to ever have the commercial capability of its contractors. It does not pay the same overall amount as the contractors at a senior level. It cannot provide the same incentives to focus on value for money as contractors will provide to increase profit. It does not offer the same hope of advancement to the most senior positions as offered by business. And it does not provide the same breadth of experience across both public and private contracts. Instead of trying to match contractors on their commercial capability, it needs to find ways of deploying its scarce capability to where most required, while making the management of its other contracts easier.