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OGC publishes the first tranche of Procurement Capability Reviews for Government departments
Released on 06/12/2007
The Office of Government Commerce (OGC) has today published its first three Procurement Capability Review (PCR) reports for the Department for Education and Skills (DfES - as was)1, the Department for Communities and Local Government (CLG), and the Department for Work and Pensions (DWP), along with an overview report on key emerging themes.
Each of the three reports published today includes the findings and recommendations of departmental procurement capability against nine key areas alongside a response from the respective department outlining the actions they are going to take as a result of the findings.
Nigel Smith, OGC's Chief Executive, said: "Good procurement is essential to ensuring good public services, from buying goods and services that work as they are supposed to, to achieving savings that can be ploughed back into front-line services.
"I am grateful to the departments involved in the first tranche of reviews and welcome their early and wholehearted commitment to this process. Each department has produced robust and constructive plans to address the areas identified for improvement, and this should lead to real change. Having clear and detailed data on current departmental capability is an important step in the process of transforming government procurement."
Initial findings from the first three reviews have concluded that in order to meet the challenges of the different environments within which they operate the departments have each applied very different delivery models. The variable range of capability across the three departments is due to a number of factors and there is no single, simple solution to the issues they face.
The process was successfully piloted in DfES (as was) in the spring of 2007. David Bell, Permanent Secretary for DCSF said: "The OGC Procurement Capability Review has been very much welcomed and supported within DCSF as a mechanism through which we can learn and improve. The Review outcomes have highlighted the strengths of the DCSF Commercial Group, and given the department a strong focus for future development."
Sir Leigh Lewis, Permanent Secretary for DWP, said: "We found the review process extremely helpful. Overall it is a thorough and valuable report that will support our own efforts to deliver true performance excellence."
Peter Housden, Permanent Secretary for CLG, said: "Improved procurement has already achieved significant efficiency gains, across the department, in local government and in our NDPBs.
"We welcome the findings and in acknowledging there is more work to be done have produced a focused implementation plan to enhance commercial awareness at the centre of the department as part of our overall drive on value for money."
Tranche two, comprising reviews of the Department for Transport, the Department for Environment, Food and Rural Affairs and the Department for International Development is currently underway and the findings will be published in the early summer 2008.
Notes to Editors:
About Procurement Capability Reviews
Purpose
Procurement Capability Reviews were announced for all Government departments in January 2007 as a key enabler of the Transforming Government Procurement report. Focussing on how and where a department's money is spent, and how it achieves value from that spend, a PCR provides an independent, strategic view of the overall procurement capability of the organisation and its wider network of agencies, identifying exemplars as well as areas for improvement. OGC is committed to delivering 18 reviews by December 2008. The PCR tranche 1 departmental reports, improvement plans and overview report can be found at:www.ogc.gov.uk/procurement_documents_procurement_capability_reviews.asp
Procurement Capability Reviews (PCRs) are a central element of Transforming Government Procurement. They assess how far government procurement meets the demanding standards required to deliver value for money services now and in the future. Working with departments in concert with other OGC workstreams and HM Treasury, the reviews will drive improvements in procurement capability where the greatest impact can be achieved.
Scope
The reviews perform a challenge function at strategic and structural level, covering the widest definition of procurement from commodities through to complex PFI projects. The department's procurement activities across the whole lifecycle, from policy and strategy decisions to delivery and disposal are considered. Programme and project management (PPM) capability is therefore included in the review. The full length of the Department's delivery chains are explored, from central departmental functions, through to Agencies, Non-Departmental Public Bodies, partners (commercial and non-commercial) and end users.
OGC's Procurement Capability Reviews complement the Cabinet Office's programme of capability reviews, by focussing on the contribution of procurement capability to successful delivery. PCRs draw upon these and other sources of information including NAO reports and Gateway Review summaries.
The nine areas examined as part of the reviews are: Visibility and Impact of Leadership; Business and Policy Alignment; Stakeholder and Supplier Confidence; Resourcing; Intelligent Client Capability; Governance and Organisation; Sourcing and Collaboration; Use of Tools and Techniques; and Knowledge and Performance Management.
Programme
The review model and associated processes were piloted during the spring, and then refined taking account of lessons learned and further stakeholder consultation.
The review teams include high calibre commercial, procurement and PPM experts drawn from the public and private sectors. Reviews take place over an intensive period of three to four weeks, following extensive preparation. The programme includes a moderation phase between each tranche of three to five reviews. Following moderation, scores and departmental improvement plans are published. OGC will monitor progress via stocktakes and will follow up with a second round of reviews after 24 months.
Benefits
PCRs provide an independent, strategic review of government procurement, identifying exemplars as well as areas for improvement. Departments will be able to see how others are performing and pan-government lessons will be identified. Suppliers and non-commercial partners will have the opportunity to inform the reviews and will benefit from the resulting improved capability in the delivery chain. Expert input will support procurement directors in raising the impact and influence of the procurement function, resulting where needed in earlier consultation on strategy and policy decisions; investment in targeted development of professional expertise; more control over spend and access to the best government deals, all ultimately leading to greater value for money and improved public services.
About OGC
The Office of Government Commerce (OGC) is an office of HM Treasury, responsible for improving value for money by driving up standards and capability in procurement, from commodities buying to the delivery of major capital projects, maximising the effective use of 60% of Government spending and a £30 billion property estate.
A new Government strategy launched in January 2007, Transforming Government Procurement, highlighted the central importance of procurement in delivering high-quality public services and best value for money. OGC is tasked with delivering this transformation, and with driving up standards and procurement capability across central Government. The OGC will do this through:
- Setting procurement standards and monitoring performance and capability;
- Developing a cadre of skilled procurement professionals across Government;
- Driving value for money through collaborative procurement;
- Playing a stronger role in the successful delivery of major projects;
- And improving management and use of the Government estate.
Media Contact:
Michael Dunning, Media Relations Manager
T: 020 7271 1318
F: 020 7271 1345
M: 07771 815245
E: michael.dunning@ogc.gsi.gov.uk
1 Machinery of government changes occurred shortly after the review that resulted in DfES splitting to form the Department for Children, Schools and families and the Department for Innovation, Universities and Skills. Given the pilot review is still referred to as the DfES review, even though the work flowing from it is being co-ordinated by DCSF.
Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk
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Page last updated: 2008-10-20
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