News

OGC publishes Procurement Capability Reviews tranches four and five

Released on 01/04/2009

The Office of Government Commerce (OGC) has today published tranches 4 and 5 of the Procurement Capability Reviews for the Ministry of Defence, Department of Culture Media and Sport, the Foreign and the Commonwealth Office (tranche four) the Department of Business, Enterprise and Regulatory Reform, HM Treasury and the Cabinet Office (tranche 5).

Each of the 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.

Procurement Capability Reviews (PCR) were announced in 2007 as a key driver in the Government's Transforming Government Procurement work led by the OGC, which looks to improve value for money from the £175bn public sector spend on goods and services.

Nigel Smith, Chief Executive of the Office of Government Commerce, said:

"We very much welcome the involvement of the departments and thank them for their participation in the Procurement Capability Review process. Through working closely with the departments we have identified areas for improvement and clear plans have been developed by them to focus on how their procurement processes can be enhanced to ensure that they are delivering the best possible outcomes from their spend.

"A lot of great work and professionalism has been identified in our reviews, However, if Government is to continue to deliver value for money, it is imperative that further improvements are made, especially by developing the procurement skills base that currently exists."

An overview report of the programme will be published later in the year. Copies of the departmental reviews and improvement plans can be accessed on the OGC website.

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 17 reviews by December 2008. The PCR tranche 1 and 2 departmental reports and improvement plans can be found on the OGC website.

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.

Departments reviewed so far include the Department for Environment, Food and Rural Affairs (Defra), Department for Transport (DfT) and the Department for International Development (DfID), Department for Education and Skills (DfES - as was) the Department for Communities and Local Government (CLG), and the Department for Work and Pensions (DWP).

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 the Office of Government Commerce

The Office of Government Commerce (OGC) is an independent office of HM Treasury, established to help Government deliver best value from its spending.  The OGC works with central Government departments and other public sector organisations to ensure the achievement of six key goals:

• Delivery of value for money from third party spend;  
• Delivery of projects to time, quality and cost, realising benefits;  
• Getting the best from the Government's £30bn estate;  
• Improving the sustainability of the Government estate and operations, including reducing carbon emissions by 12.5% by 2010-11, through stronger performance management and guidance;  
• Helping achieve delivery of further Government policy goals, including innovation, equality, and support for small and medium enterprises (SMEs);  
• And driving forward the improvement of central Government capability in procurement, project and programme management, and estates management through the development of people skills, processes and tools.

OGC provides policy standards and guidance on best practice in procurement, projects and estate management, and monitors and challenges departments' performance against these standards, grounded in an evidence base of information and assurance.  It promotes and fosters collaborative procurement across the public sector to deliver better value for money and better public services; and it provides innovative ways to develop Government's commercial and procurement capability, including leadership of the Government Procurement Service.

Media contact:
Michael Dunning, Media Relations Manager, OGC
T: 020 7271 1318
M: 07771 815245
E: michael.dunning@ogc.gsi.gov.uk

Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk