Press Releases

Government Seeks New Deal With Lawyers

The Office of Government Commerce (OGC), the Department for Education and Skills (DfES) and the Treasury Solicitor's Department have this week launched a competition for a new framework agreement for the provision of legal services to government.

This innovative and joint initiative seeks to facilitate the future procurement of quality legal services for the public sector and achieve better value for money. Initially some seven Government departments will participate offering a wider market to legal services providers.

Commenting on this week's publication of advertisements in legal publications inviting law firms to apply for inclusion in the proposed framework agreement, Peter Gershon, Chief Executive said:

"This latest joint initiative between DfES, The Treasury Solicitor's Department and OGC reflects an issue raised in the April 2001 National Audit Office (NAO) Report, Purchasing Professional Services, which identified potential savings of at least 10% on the more than £600m departments currently spend on professional services. This new legal framework agreement will contribute to these savings and I strongly urge public sector bodies to take advantage of its benefits."

The framework agreement is divided into seven categories of legal work. 'Panels' of law firms who demonstrate expertise in a particular category, when selected for inclusion, will undertake work in that category without the need for a lengthy and expensive procurement exercise. The competition aims to encourage not only large firms but also small, medium sized and niche firms to participate.

Juliet Wheldon, the Treasury Solicitor said:

"High quality legal advice and services are increasingly important to Government. We are putting together panels of selected firms so that departments can access the best possible services, at the best value to the taxpayer. I look forward to working with departments on this important procurement exercise."

It may well be that, in time, these new arrangements become the vehicle through which the greater part of government's external legal services requirements are met.

The Framework Agreement will run for a period of three years.

NOTES TO EDITORS

1. Established in April 2000, the OGC was set up to act as a catalyst in procurement issues and to work with civil departments to achieve best value for money in their commercial activities. Responsible for civil central government procurement policy and best practice including Construction, Property Management, IT, the Private Finance Initiative (PFI), supplier relations including opening government contracts to SMEs, e-commerce including the Government Procurement Card, the Gateway Review Process, OGCbuying.solutions, including the Government buying catalogues, G-Cat and S-Cat and developing strategic procurement partnerships with the private sector.

1. OGCbuying.solutions is an Executive Agency of the Office of Government Commerce. The OGCbuying.solutions website is at: www.ogcbuyingsolutions.gov.uk
   
   
2. The April 2001 National Audit Office (NAO) Report, Purchasing Professional Services identified £610M expenditure on Professional Services (for the financial year 99-00). They identified 4 major areas of interest - Management Consultancy, Legal Services, Financial Consultancy and Human Resource advice and assistance. They estimated that in the year 1999/2000, government spend on Legal services alone was in the region of £70m. Click on the link to view this Report http://www.nao.gov.uk/pn/00-01/0001400.htm

1. The Public Accounts Committee reported on "Better Value for Money from Professional Services" on 14 March 2002. The Committee considered that "where it is cost effective to do so departments should adopt the initiatives that the Office of Government Commerce has taken to help them improve their purchasing of professional services". The report is available from the PAC website at http://www.publications.parliament.uk/pa/cm/cmpubacc.htm

1. Service provision will be divided into seven categories, each of which relates to particular areas of project or transaction common to most government organisations. The categories are:

1. IT, Telecommunications and E-Commerce
2. Property and Estates
3. Human Resources
4. Construction
5. Company and Corporate Matters
6. Financial and Banking Matters
7. General Commercial Matters (not covered in 1-6).

There will be a panel of suitably experienced legal firms offering services under each category. The panels will cover the provision of advice under English Law. All Crown bodies will be encouraged to use the arrangements - but utilisation will not be mandatory. In time, the panels may also be opened for use to non-Crown public sector bodies.

1. The letting of the Legal Framework Agreement follows the recent OGC announcement of a similar framework agreement (S-Cat) covering the supply of Professional Services - Human Resources (including Recruitment, Interim Management and HR related consultancy) and Financial Services 9including Accountancy, Audit and Finance-related consultancy).

1. Office of Government Commerce press enquiries to Martin Day on 020 7271 1318/1366 or Martin.Day@ogc.gsi.gov.uk

1. DfES press enquiries to Caroline.Nagle@dfee.gov.uk

1. Treasury Solicitors Department press enquiries to carolyn.bartlett@lslo.x.gsi.gov.uk