Government still failing to reach the grade on procurement

Despite positive intentions and a range of initiatives EEF believes the current system of public procurement is not delivering and a step change is now required to transform public procurement processes and boost innovation. In particular, extensive interviews with defence and medical companies have shown too much emphasis is still being placed on short-term efficiency savings at the expense of long term planning. Furthermore, public procurers also often lack the skills or the incentives to purchase innovative solutions. In response, EEF believes significant investment is required in the skills of procurers and to simplify the guidance that they have to follow. Government must make a break with the previous feast and famine approach and communicate a long-term procurement strategy that would provide suppliers with much greater certainty over demand. Taking these steps would stimulate greater innovation by business, improve public services and provide taxpayers with better value for money. EEF chief economist, Steve Radley, says: “Given the size of its budget, government can play a critical role in fostering innovation. Companies in the defence industry have seen a significant improvement but overall progress has been patchy despite a range of reviews and initiatives. Business remains frustrated by the high administrative costs and long delays involved in tendering for government contracts.” EEF has called for: 1. A dedicated body responsible for driving the early adoption of innovative solutions. This enhanced Technology Strategy Board (TSB) would support projects from technical feasibility through to prototyping and advanced demonstration. 2. An enhanced Technology Strategy Board should also be used to upgrade the skills of public procurers. This would draw on people from business, academia and other government departments and would have the skills and responsibility for promoting more radical innovations. 3. The government should develop and communicate a long-term procurement strategy that would enable procurers to understand and meet government demand over the long run. 4. Procurement policy and guidance to procurers should be kept simple with a focus on value for money. Radley added: “By giving the Technology Strategy Board a wider remit, investing in the skills of procurers and simplifying the guidance on procurement so that it focuses on lifetime value for money government would go a long way towards addressing the current failings.”