3SC Launch Position Paper – The Crisis in Public Sector Contracting and How to Cure it
Procurement continues to challenge the public sector with the award of government contracts still focused on price. It feels like the best procurement solution is not really the objective: the one that is easiest to justify is.
This mindset will never create great contracting – it just keeps driving us towards one size fits all solutions.
Outsource to a Carillion or insource to the local direct labour organisation or in house team, the outcome is the same – a monopoly whether public or private. The opportunity for innovation is reduced and the chance to use diversity and local competition to drive up performance is lost.
There are many small organisations out there, particularly in the third sector, who deserve a chance to show how they can generate more positive social outcomes out of government contracts. However, they can’t make the cut – excluded because they do not meet financial hurdles irrespective of what they can deliver in relation to outcomes for the customer.
Public procurement needs a radical overhaul – we hope that our first Position Paper which we are launching today at the House of Commons will add to the momentum for change.
We would welcome all feedback…….