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Second wave of procurement reviews brings improvements

OGC's Wave 2 procurement capability reviews have focused on commercial issues and risks, improving efficiency across government

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The OGC has published findings on the progress made by the Home Office, Department for Work and Pensions (DWP) and the Department for Communities and Local Government (CLG) and the first tranche of Wave 2 procurement capability reviews (PCR).

The reviews reveal the progress made by these departments compared with the procurement capability improvement plans which were established following Wave 1 reviews.

Wave 2 reviews are self assessments which apply the same PCR assessment model used in the first wave.

This allows like-for-like comparisons to be made. Wave 2 reviews also have an even greater focus on performance measurement and use benchmarking data to help validate departmental qualitative evidence, providing greater transparency on the extent to which desired improvement targets have been met.

Departmental PCR self-assessment results are assured independently, either by OGC as for CLG, or external advisers as in the case of DWP, or via peer review where a senior representative from another department validates the results, an approach which the Home Office used.

OGC's Chief Executive Nigel Smith said: "I am delighted that the benefits of the procurement capability review programme are being recognised formally in the results of the second wave of reviews. The programme has resulted in commercial issues and risks featuring more at the top tables across government and more senior commercial directors being appointed. There has also been significant process efficiency.

"I think the scale of the improvement in CLG deserves particular mention. Continuous improvement should be at the heart of all commercial functions particularly given the importance of public procurement in the current economic climate and I look forward to more improvements later in the year."

Speaking about his department's PCR review, Home Office group commercial director, John Collington said: "I am delighted with the outcome of the procurement capability review assessment, which confirms that the work of the commercial team has resulted in capability improvements taking the Home Office towards best in class in all areas.."

The Putting People First: Smarter Government plan published in December last year provided further impetus to strengthening procurement capability across the public sector, by building on the OGC's work. The proposals for smarter, more efficient government in the plan will release in excess of £12bn a year over and above the £26.5bn a year of savings which government departments have already made since 2004 through the Gershon review and the further £35bn a year to which we are already committed by 2011.

They include £3bn of new efficiency savings identified since the 2009 Budget - of which over £1.3bn will come from streamlining central government. Public sector procurement is a significant contributor to efficiency savings.

You can view the reports on the OGC website


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