Press Releases

New Actions in Place to Cut Red Tape in Government Procurement

JOINT CABINET OFFICE/OGC PRESS NOTICE

Companies bidding for contracts will face fewer bureaucratic hurdles and more transparency as the Government today launched a set of key actions that will cut red tape in the Government Procurement process across departments. These are outlined in a joint report from the Regulatory Impact Unit's Public Sector Team and the Office of Government Commerce (OGC).

"Making a Difference: Reducing Bureaucracy in Central Civil Government Procurement" is aimed at commercial activity in Government, much of which is essential to the delivery of vital public services. The report commits government departments to deliver improvement actions in a series of milestones over the next two years.

Five key areas have been identified and specific actions put into place for each area:

1. Speeding up the procurement process and reducing costs.
2. Improving leadership and client capability
3. Improving communication with the market and in government
4. Focussing on successful project outcomes
5. Achieving more consistent use of best practice

Douglas Alexander, Minister for the Cabinet Office, said:

"Improving public services is one the Government's top priorities. Much of the public service delivery depends on bought-in services, so effective procurement is at the heart of the Government's Delivery and Reform agenda"

Supporting the report, Digby Jones, Director-General of the Confederation of British Industry, said:

"Effective procurement is vital for successful delivery. Faster processes, good communication between government and industry and stronger government skills in this field will all help to make it happen. This report offers a sound plan of action to realise all of these ambitions. The CBI is committed to working with government to deliver these positive outcomes."

Notes to Editors:

1. Copies of the report "Reducing bureaucracy in central civil government procurement" are available from psinfo@cabinet-office.x.gsi.gov.uk or can be downloaded from the Cabinet Office website at: http://www.cabinet-office.gov.uk/regulation/PublicSector/reports.html

2. The Public Sector Team in the RIU was set up in November 1999 to reduce the burden of regulation and bureaucracy. The team's remit is to:

• Identify paperwork and processes that are a burden to the frontline
• Identify practical solutions that will reduce these burdens for staff
• Broker agreement with stakeholders to deliver these solutions and facilitate real change.

3. The Office of Government Commerce (OGC) is an office of HM Treasury which works with central civil Government as a catalyst to achieve best value for money in commercial activities. Its Government Market division focuses on optimising competition in the government marketplace, in order to achieve better value for money for the taxpayer. This includes work to encourage competition and long-term capacity planning in areas where the government has significant purchasing power; and work to take time and cost out of procurement.

4. Many of the same issues identified in this report were also raised in OGC's "Increasing Competition and Improving Long-term Capacity Planning" report, launched by the Chancellor in the Pre-Budget Report on 10 December. The programme of work to deliver the actions in both reports will be closely aligned.

Press enquiries to John O'Sullivan RIU Communications 0207 276 2154

Press enquiries to Paula Harrington, OGC Press Office on 020 7271 1366

Cabinet Office Press Office 70 Whitehall LONDON SW1A 2AS
Tel: 020 7276 0317 - Fax: 020 7276 0618
http://www.cabinet-office.gov.uk
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