NAO audit framework

Market management & sourcing

3. Has sourcing supported the commercial strategy and followed recognised good practice to optimise VFM?

3.1  Has market management driven long term value for money?

3.2  Was there a defensible process that resulted in the selection of a capable provider?

3.3  Was there optimum use of competitive pressure?

Examples of relevant guidance

NAO good practice contract management framework

1.2  Market intelligence is used to maintain an understanding of the market and of alternative suppliers (to inform benchmarking, contingency planning and re-competition strategies).

10.2 The capacity and capability of potential suppliers is analysed, and linked to wider government analysis.

11.5  Market making is undertaken where appropriate to stimulate competition and ensure the requirements can be delivered by the market; there is an understanding of issues such as switching and bidding costs.

Cabinet Office open book guidance

Discusses how government is to decide which contracts would benefit from open book approaches. At a minimum, it recommends understanding cost units and drivers.

IACCM - Tackling the weaknesses in Contract Management Pitfall 1: Lack of clarity in scope and goals