Article taken from Public Service Public sector procurement has a major role to play in helping to maintain the UK's place as a leading economy, while at the same time making taxpayers' money work harder.
The Office of Government Commerce (OGC) is at the forefront of driving greater efficiencies from the £175bn of government spend on third party goods and services and has recently set out a three- year plan that builds on transforming government procurement.
The plan shows how the government will help to ensure procurement value for money while at the same time provide a reliable and supportive partner for business.
The OGC's agenda sets out six key targets:
The OGC is bringing procurement out of the shadows by delivering procurement capability reviews which promote good practice and continuous improvement.
We are also continuing the work of building a strong and relevant government procurement service (GPS) - creating and maintaining a sustainable balance of appropriately skilled and suitably managed procurement professionals.
The OGC is fostering new talent through the government procurement graduate scheme; the fast stream procurement placement option; the creation of a skills development directory; and a reward project for procurement professionals.
Better-informed and more capable procurement professionals will enhance the ability of government to come up with the best procurement solutions for the public sector and its business partners.
An example of the work being undertaken by the OGC and the GPS is a new framework for managing contracts. This is particularly relevant for long-term contracts where customers need to ensure that service levels and value for money are maintained. The framework will provide the foundation for the OGC's forthcoming revised guidance on contract management.
The OGC has already published three guides to help procurers with decision-making in areas including sustainability, social issues and equality. We will also publish an assessment framework to enable public procurers to decide when, how and with what priority to address policy agendas by using public procurement as a lever. We will also agree strategies with key Whitehall stakeholders on all policy-through-procurement agendas.
An example of the work the OGC has already been involved with in this area has been to find ways to help small and medium enterprises (SMEs) get better access to public sector contracts. SMEs are a major part of the UK economy and can play an important role in helping the government achieve value for money from its spend.
Following the Glover Review into SMEs' access to public sector contracts, 12 recommendations have been made. For example, the government is introducing measures to reduce bureaucracy and make opportunities more transparent for small businesses. It is also making it mandatory to advertise contract opportunities above £20,000 electronically, and making them accessible through a single, easy-to-search online portal.
The OGC has also been looking at other issues in a bid to improve value for money for the taxpayer and help businesses get the best from contracts with the government: The OGC's construction team, for example, is working with public sector clients and industry to improve the planning and delivery of construction procurement, to embed best practice principles and to measure performance in the delivery of construction projects. The team has also developed the public sector construction database to facilitate construction programme management.
The OGC has supported the Cabinet Office's transformational government initiative on supplier management. Our common assessment frame-work has tracked the performance of government as a client and its key ICT suppliers. As a result, performance improvement plans have been developed with key ICT suppliers in conjunction with key departments.
Last year, the OGC also launched its supplier feedback service which invites suppliers of public sector goods and services to comment on areas of poor practice. The service has already helped the government become a better customer and the OGC aims to further promote its use.
The OGC is very mindful of the current economic climate and believes its agenda is crucial to helping the public sector meet the challenges ahead. We are here to support government departments and the wider public sector, while at the same time opening up opportunities for business.
[Nigel Smith is chief executive of the Office of Government Commerce]