News alert / PAC highlights procurement failings

The government spent £259bn procuring goods and services in 2021/22, but a new Public Accounts Committee (PAC) report finds that it is unable to demonstrate it is achieving value for money due to significant issues with the quality and completeness of data. Public bodies are required to publish data on prospective and awarded contracts, but recent National Audit Office analysis shows incomplete, tardily published or inconsistent information on a significant minority of contracts. The PAC is calling on the Cabinet Office to set out clear guidance for contracting authorities. These issues mean government is unable to evaluate competitive trends in markets. Of 235 large contracts recorded between January 2021 and January 2023, 20% using open competition received only one bid. Around a third of the total contract value of more than £100bn awarded by major departments during 2021/22 was not subject to competition, though estimates suggest government could achieve savings of up to £7.7bn per year through increased competition.