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Consultants: Costs

Volume 464: debated on Wednesday 17 October 2007

To ask the Secretary of State for the Home Department which private consultancy firms (a) her Department and (b) agencies which report to her Department engaged in each of the last three years; which programmes or projects each firm worked on; and what the approximate cost to the Department or agency concerned was of each engagement. (155899)

The Home Department engages consultancy firms to support and augment civil servants in the delivery of a specific range of work, including large IT development programmes and where more cost-effective, longer term service delivery programmes.

The Department’s expenditure on these services is allocated across a very wide range of firms, ranging from small, specialist companies with niche expertise and few employees, to global multinational organisations offering a broad spectrum and substantial depth of consultancy expertise.

The Department awards contracts in competition according to the EU procurement regulations based on best value for money. The Department uses OGC framework agreements where appropriate. The use of external consultants in the Home Office provides the Department with specialist knowledge, skills, capacity and technical expertise that would not otherwise be available to it. Some of the expenditure is on consultants to whom we have outsourced services, such as IT.

The information held by the Home Department on its spend on consultancy and professional legal services is as follows:

2004-05: centrally held data are not available on a like-for-like basis, owing to a change in financial recording systems in that period.

2005-06: consultancy: £137 million; legal; £21 million: total: £158 million.

2006-07: consultancy: £148 million; legal: £28 million; total: £176 million.

2007-08: during the current financial year, the Home Department is refining and improving its approach to the management of consultancy spend including a more rigorous demand management and approval process. Year to date figures indicate a reduction in spend which we are forecasting to be maintained throughout the current financial year.

The breakdown across agencies and the Department are as follows.

A breakdown of expenditure by engagement by company is not held centrally and to attempt to assemble it would incur disproportionate cost. The top 10 companies by total expenditure across the Home Office in the last three years are as follows. The companies are listed in alphabetical order; the amount spent with each company is not shown on grounds of commercial confidentiality.

Table 1: Home Department expenditure with consultancy companies for 2005-06 and 2006-07

Borders and Immigration Agency

Home Office

Identity and Passport Service

Total

2005-06

Consultancy

54

74

9

137

Legal

17

4

0

21

Total

71

78

9

158

2006-07

Consultancy

44

74

30

148

Legal

23

5

0

28

Total

67

79

30

176

Top 10 companies by total expenditure across the Home Office in the last three years

Cap Gemini

Capita Resourcing Ltd.

Deloitte

Drivers Jonas

Hedra BearingPoint

IBM

LogicaCMG

PA Consulting Group

Parity Resources

Siemens Business Services Ltd.