Government Departments: Consultancy Services

Questions

Asked by

Lord Oakeshott of Seagrove Bay
To ask Her Majesty's Government how much was spent by departments and their agencies on consultancy and advisory work in each of the last five years for which information is available. [HL1708]

The Financial Services Secretary to the Treasury (Lord Myners)
Central government departments' spending on consultancy and advisory work in the 16 largest-spending departments decreased from £1,276 million to £884 million (31 per cent) over the three years from 2005-06 to 2007-08, the latest year for which figures are available.

The latest year for which figures are available is 2007-8. A breakdown of spend on consultancy and advisory work by department is available at:

www.ogc.gov.uk/professional_services_ consultancy_value_programme. asp.

The Pre-Budget Report announced that consultancy spend across government would be further reduced by 50 per cent by 2011-12.

Asked by

Lord Oakeshott of Seagrove Bay
To ask Her Majesty's Government what steps they have taken to ensure they are getting value for money from consultancy and advisory firms; and what steps they are taking to ensure that medium- sized firms have access to tender processes. [HL1709]

Lord Myners
The Office of Government Commerce is leading a consultancy value programme (CVP) across government to ensure that better value for money is achieved from public sector spend on consultancy. The CVP helped reduce central government spend on consultancy and advisory work in the 16 largest-spending departments from £1,276 million in 2005-06 to £884 million (31 per cent) in 2007-08 by providing a range of initiatives and tools to help procurers and end-users of consultancy to identify when consultancy is the best solution; to ensure the procurement business case is robust; and to feel confident they are extracting best value out of the relationship with the consultancy supplier.

The Pre-Budget Report announced that consultancy spend across Government would be further reduced by 50 per cent by 2012.

To ensure that SMEs have equal opportunities to bid for government business, an OGC / BIS programme, Access for All, is currently implementing the recommendations made in the Glover committee report Accelerating the SME Economic Engine.

More detail about the recommendations and continuing progress on their implementation can be found via the following weblink: http://www.ogc.gov.uk/key_policy_principles_creating_opportunities_for_smes_ and_third_sector_organisations.asp

Asked by

Lord Oakeshott of Seagrove Bay
To ask Her Majesty's Government what investigations they have undertaken into possible savings from using consultancy and advisory services of smaller firms not on approved lists. [HL1710]

Lord Myners
The Government do not maintain lists of approved suppliers. However, Buying Solutions operates a management consultancy and accounting services framework agreement. Suppliers can bid to be on framework agreements when such contracts are let by Buying Solutions or individual departments. In these cases, as with all public sector contracts, it is for individual departments and agencies to determine what constitutes best value for money in resourcing their requirements for consultancy and advisory services.

In 2006, NAO investigated central government's use of consultants and made specific recommendations to improve the way it assesses the need for, procures, and uses them. In response, OGC launched the consultancy value programme (CVP) in collaboration with government departments, to ensure that better value for money is achieved from consultancy within government. Consequently, central government spend on consultancy has decreased by 31 per cent over three years, from £1,276 million in 2005-06 to £884 million in 2007-08. The Pre-Budget Report announced that consultancy spend across government would be further reduced by 50 per cent by 2012.

The Government recognise the benefits that smaller consultancy firms can offer, and are taking steps to facilitate their participation in public procurement. To ensure that SMEs have equal opportunities to bid for government business, an OGC / BIS programme, Access for All, is currently implementing the recommendations made in the Glover committee report, Accelerating the SME Economic Engine.

More detail about the recommendations and continuing progress on their implementation can be found via the following weblink: http://www.ogc.gov.uk/key_policy_principles_creating_opportunities_for_smes_ and_third_sector_organisations.asp