09 November 2007
MPs have slated public procurement practices as over-bureaucratic and not necessarily leading to best value.
In a report published on November 8, Future of UK manufacturing: public procurement, the Commons trade and industry select committee said guidance on procurement policy by the Office of Government Commerce was 'clear and appropriate', but less satisfactory in practice.
Appropriate skills and experience were not available in all the 2,000 public bodies that procure goods and services, the MPs said. 'Some officials took refuge in bureaucratic procedures and opted for the least-cost, not the best-value, bid.
'This deterred competition and innovation among suppliers, often ruled out environmentally sustainable options, and was particularly harmful to small businesses which do not have the resources to deal with complex, long tendering processes.'
Committee chair Peter Luff said: 'There is a danger that small and medium-sized enterprises will be squeezed out from even tendering for contracts because of the centralisation imposed under the government's efficiency drive.'
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