House of Commons - Committee of Public Accounts: Cabinet Office: Iimproving Government Procurement And The Impact Government's ICT Savings Initiatives - HC 137

Book excerpt: Central government spent a total of around £45 billion on buying goods and services in 2011-12, including an estimated £6.9 billion on ICT. Since 2010, the government has introduced a range of procurement reforms designed to save money. These include centralising the procurement of goods and services bought by all departments, such as energy and travel. All ICT spending over £5million must be approved by the Cabinet Office, and a programme to develop ICT infrastructure which can be shared across government organisations has been developed. These reforms are beginning to have an impact: the proportion of spending that goes through central contracts has increased steadily; the ICT initiatives have resulted in some savings; and there are signs that departments are starting to think more intelligently about why and how they use ICT. But the accountability arrangements for centralised procurement remain a barrier; the centre manages the contracts yet departments remain liable for their own spending decisions so they are reluctant to cede authority to the centre. Management information on spending and savings is incomplete, so departments do not always trust the figures on savings claimed. These gaps in accountability and data make it harder to make the case for procurement across central government and in the wider public sector to be centralised. The commitment to localism seems to be at odds with buying through central contracts, and government's desire to give more government business to small firms does not appear to have changed the way large procurements are managed.