National Audit Office (NAO): Government Contracting: The Role of Major Contractors in the Delivery of Public Services - HC 810

Download or read book National Audit Office (NAO): Government Contracting: The Role of Major Contractors in the Delivery of Public Services - HC 810 written by Great Britain: National Audit Office and published by The Stationery Office. This book was released on 2013-11-12 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the memorandum 'The role of major contractors in the delivery of public services' the NAO sets out some of the benefits that can be achieved through contracting but highlights three issues that deserve greater public scrutiny. First, it raises questions about the way public service markets operate. This includes the need for scrutiny over whether public service contracts are sufficiently competitive and whether the rise of a few major contractors is in the public interest. Secondly, it highlights the issue of whether contractors' profits reflect a fair return. Understanding contractors' profits is important to ensure that their interests are aligned properly with that of the taxpayer. But transparency over rewards that contractors make is at present limited. Thirdly, the report asks how we know that contractors are delivering services to the high standards expected. In particular, government needs to ensure that large companies with sprawling structures are not paying 'lip-service' to control and that they have the right culture and control environment across their group. This requires transparency over contractors' performance and the use of contractual entitlement to information, audit and inspection. This should be backed up by the threat of financial penalties and being barred from future competitions if things are found to be wrong. A related report 'Managing government suppliers' (HC 811, session 2013-14, ISBN 9780102987034) examines the way the Cabinet Office is working to improve government's management of strategic suppliers.