“Countless billions” in government contracts have been paid out by officials without knowing whether the money was worth it or not, lawmakers have warned.
A report by the influential House of Commons Public Accounts Committee (PAC) said the government failed to deliver value for money in a £259 public procurement due to “serious problems with the quality and completeness of contract data”.
Their report criticized the “poor quality” of published data on official contracts and said the lack of information was hampering efforts to ensure value for money.
The National Audit Office found that the government was unable to assess competitive trends in the markets. Of the 235 major contracts registered between January 2021 and January 2023, one in five contracts received only one open tender.
About a third of the total value of contracts awarded by major departments in 2021-22, worth more than £100 billion, were not subject to competition, although it is estimated that the government could save up to £7.7 billion a year by strengthening competition.
The report is the latest to raise concerns about the way the UK government tenders for the supply of goods and services to its organisations.
The awarding of personal protective equipment (PPE) and other Covid response contracts at the start of the Covid emergency was criticized as biased and in favor of those with political access when ministers were revealed to have used the “high priority lane”. (known as “VIP Alley”), which allows MPs, peers, ministers and senior officials to recommend potential suppliers. A Supreme Court judge later ruled that the use of the high priority lane was illegal.
Former Conservative peer Baroness Michelle Monnet was one of the beneficiaries of VIP Avenue. PPE Medpro, a company it initially denied any connection with before admitting it, won its first contract worth £81 million just a month after it was founded in 2020. A few weeks later the company received a second contract worth £122 million for sterile surgical procedures. Dresses.
Baroness Monet and her husband Douglas Barrowman admitted this week in a YouTube documentary funded by PPE Medpro that they are under investigation by the National Crime Agency, which is investigating their involvement in the company. Both deny any wrongdoing.
Dame Meg Hillier, chair of the PAC, said: “Government procurement of goods and services is equivalent to the cost of building several HS2 rail lines every year.”
“It is therefore clear that government procurement requires careful analysis to ensure that taxpayers’ money is used to its fullest potential.
“The Cabinet Office must act quickly to address the ongoing lack of transparency in government-funded contracts so that taxpayers can clearly see where their money is being spent and do not find it difficult to find out.”
“Furthermore, departments are not doing enough to ensure strong competition for their contracts, leaving untold billions in savings on the table each year.”
In 2021-22, the government spent £259 billion on purchasing goods and services, of which around £100 billion came from non-competitive contracts.
Dame Meg added: “Given the transformative impact that public procurement can have, the Government’s approach here is disappointing. Whether it’s tackling climate change, reducing waste, creating new businesses, jobs and skills, or improving supplier diversity, innovation and sustainability, we found no evidence that the government is using the purchasing power it is using to squeeze “Uses the button.” constantly”. increases.”
MPs called on the government to explain how it will use data to improve the government’s ability to deliver better value for money to taxpayers.
A Cabinet Office spokesman said: “Value for money always comes first and our specialist teams saved taxpayers £2.9 billion last year.”
“Our new procurement law will also help us improve data quality and analysis when assessing tenders, and our commitment to transparency means all contracts will be published online for public review.”
“The report is also misleading because this figure does not take into account the fact that many of these contracts are extensions of existing contracts that have already been awarded through open tender or open tenders involving a single bidder.”
Source: I News

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