Government is improving contract management on three levels
Given the importance of contracting, government needs to get it right. Since 2013, it has invested in understanding and improving commercial and contract management.
At a government level, this has included developing a stronger commercial function and re-defning the profession. Government has also improved commercial and contract management at a contract level, with the centre of government giving more support in terms of skills, expertise and guidance. We and the Committee of Public Accounts have acknowledged that government has made progress in improving contract management in recent years. The Cabinet Office recently launched new Commercial Operating Standards which apply across the whole of departments' businesses. But government still needs to do more to ensure that government contracting is effective, meets public service standards and provides better value for money for the taxpayer.
Commercial and contract management areas of focus
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Government level Government Commercial Function has sought to redefine procurement as a new commercial profession and to improve commercial capability across government. It has developed commercial standards and guidance for departments and professional competency standards for commercial experts. It has sought to improve accountability and transparency of contracts across government and begun to build strategic relationships with it's larger suppliers. |
| Organisational level Each department sets detailed commercial policies for its own organisations, and procures and manages its own contracts. Since 2013, many departments have focused on understanding and better managing their organisational capabilities. The larger spending departments, in particular, have improved the governance of both their contracts and portfolios. They have also invested in new contract management IT systems, new organisational structures and introduced new ways to prioritise resources. |
| Contract level We are only just starting to see the impact of changes at a government and organisational level in our audits of individual contracts. This report focuses on the issues we still see arising in individual contracts and projects, which can be resolved at a contract level. | ||||||
