2 What Has Happened & Why?

If government is to feel confident about using contestability to challenge performance and drawing upon a diverse supply chain of public, private and not-for-profit providers, then the market must be well managed. For the long-term survival of the market, it is vital that there is broad support among the general public, among politicians and public servants, and among suppliers, both management and staff. In short, the mixed economy that has emerged in the UK for the delivery of public services must be politically and commercially sustainable.

There has been a vast array of government reports and guidance documents published over the last two or three decades - by the National Audit Office, the former Audit Commission, the former Office of Fair Trading, parliament committees, departmental reviews, independent inquiries and think tanks - which explain how market design and stewardship, procurement and contract management should be done, and the absolute necessity of building government capability.

And while there has certainly been some improvement over time, in far too many areas, this advice has been ignored. As the following discussion makes clear, the same fundamental mistakes are still being made a quarter of a century after they were first raised.

There is no need for another guidance document which explains the multitude of procedures and processes that are necessary for good procurement and contract management. Instead, this document focuses on a handful of cultural, structural and constitutional issues that are so fundamental that no market for complex public services can survive long without them.

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