27 April 2001
The deals with major accountancy firms mean that, for the first time, each of the commission's ten regions in England and Wales will have at least two audit service suppliers to District Audit, its arm's-length agency. A framework contract is a contract for work of a specified value, over a distinct period within a defined area.
Under the terms of the five-year deals, PricewaterhouseCoopers will open new centres in Yorkshire and Humberside and the Southwest, meaning that it will now have a presence in every audit region in the country. KPMG and Deloitte & Touche will both open for business in Wales for the first time.
RSM Robson Rhodes will set up a new centre covering the London, Southeast and eastern areas, and HLB Kidson will open a centre in the North West.
The commission has also introduced one new accountancy firm, Mazars Neville Russell, to the marketplace for audit services as an 'approved supplier'.
The commission said the procurement exercise had been designed to help reinvigorate and develop the supply market by introducing more competition and encouraging existing contractors to develop their services. It would also promote the principle of 'contestability' within each geographical region so that a thorough and rigorous bidding process can take place when auditors pitch for business.
Martin Evans, the Audit Commission's director of audit policy and appointments, said the procurement exercise would ensure taxpayers received value for money from public bodies, as all contractors were judged on their expertise and resources rather than on price.
'We are pleased with the outcome of this exercise. We are satisfied that we have met the aims we set ourselves,' he said.
'In particular, it will ensure the continued delivery of high-quality public audit of local government and NHS bodies.'
PFapr2001
