20 To support the CCS in developing its strategy to meet government's 2020 target, we make the following recommendations to the CCS:
a Taking a more focused approach to achieving the benefits of using SMEs
The CCS needs to move from a generic approach of lifting barriers to SMEs bidding for contracts to an approach that involves working with departments to identify areas where different types of SME can bring the most benefit. It should:
• Stop changing its basis for estimating SME spending
The CCS should settle on a methodology for 2015-16 and ensure that any subsequent years' data can be compared with this 2015-16 baseline.
• Identify those areas of government where different providers can bring the most benefits
The CCS should ensure that, as departments develop plans to meet the 2020 target, they are identifying areas of spending where SMEs can have the most impact and the types of providers they would like to encourage in those areas (such as innovative businesses or VCSEs).
• Use best practice to inform future decisions
The CCS should identify where departments are effectively harnessing the benefits of using SMEs and VCSEs. It should disseminate these across government to help departments to shape their procurement and contracts to maximise the benefits from using these providers.
The CCS should also use this evidence to review the impact of SMEs on the public sector marketplace, to inform its own decisions about the quantitative target and central initiatives.
• Identify where government needs to have oversight of the relationship between prime contractors and their subcontractors
Government should identify areas where the majority of SMEs will continue to operate within a supply chain. In these areas, it should ensure prime contractors' behaviour does not prevent subcontractors delivering benefits for the public sector. For example, by introducing codes of conduct for prime contractors, or project bank accounts to ensure prompt payments.
21 In addition, there is a need for greater visibility and transparency of government's procurement, so the CCS should work with the Cabinet Office and the Government Digital Service to:
• Assess the feasibility of an integrated cross-government procurement platform to support its commercial strategy
This might be built of many systems with compatible data or a single system.
This will require leadership from the centre of government now if it is to be achieved during this Parliament.
• As a first step, improve the quality of data in Contracts Finder
The CCS should ensure there are clear lines of governance and accountability for the use of Contracts Finder, particularly enforcing the requirement for public bodies to use it to advertise opportunities.