27 June 2008
Whitehall departments lack contract management skills and management information to support good procurement, the Office for Government Commerce has warned.
The OGC highlighted weaknesses in government purchasing in a June 24 report following its second tranche of procurement capability reviews.
The reviews, established to get better value from £160bn of public spending, examined the departments for Transport, International Development and Environment, Food and Rural Affairs.
Issues raised in the reviews include 'a shortfall in highly capable commercial people', lack of contract management skills, poor management information, a lack of consistent performance measurement and 'difficulty influencing spend outside the core department', the report says.
It notes that 'there is currently no overarching commercial or procurement strategy at board or functional level' in the DfT, while DfID has 'no articulated procurement vision, mission or strategy'.
OGC chief executive Nigel Smith, said: 'Through working closely with the departments we have identified areas for improvement, and they have developed plans in response to ensure more of a focus on enhancing capability and achieving improved value for money from their spend.'
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