Case studies

Our 2016 investigation into the UKTI specialist services contract found communication during procurement to be relatively informal. Significant changes, such as to the volume and contract price, were not consistently recorded. These governance shortfalls contributed to control problems, leading to pricing disputes and the ultimate early termination of the contract.

In our 2014 report on the Army 2020 recruitment programme we recommended that the Ministry of Defence should closely monitor the effectiveness of its governance regime to oversee its supplier. Its failure to effectively manage contracts contributed to delays in developing the software required and increased costs. This led to poor results and an inability to implement the performance management mechanism.

In 2013, government's internal audit agency criticised governance and accountability arrangements for the shared service centres programme. This led to difficulties in deciding on a design, which contributed to delays. The Cabinet Office took steps to restructure governance and clarified roles. The governance was further strengthened in 2016 to better enable shared decision-making.

Our 2014 report, Transforming government's contract management, identified good practice across five levels of governance. In particular we found that:

•  The Department for Work & Pensions commissioned an external review to identify good practice in its day-to-day contract management and improve consistency.

•  The Department of Health reviewed its data to make sure contract ownership information was up-to-date and strengthened its guidance for senior responsible owners.

•  The Department for Work & Pensions improved escalation routes by ensuring that all contracts have senior responsible owners reporting to staff in suitable procurement categories.

•  The Ministry of Justice established a new commercial and contract governance committee with a wider remit and greater seniority covering current contracts as well as those yet to be signed.

•  The Crown Commercial Service's complex transactions team provided central support to departments with contractual disputes.