Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think that taxpayers should know about civil service procurement contracts

116 replies

Atlanticwinds · 12/11/2024 20:14

This topic has always made me so uncomfortable and extremely annoyed but today I nearly lost the plot. I’m a civil servant working in a department that deals with public protection. The government sends us millions every year to run the “business” including salaries, housing of the service users, food, healthcare, personal development…etc. We’re a small department made of 4 middle managers and are given less than £7000 per year to use on providing good service and support. This is nowhere near enough and we’re always waiting for the next financial year. We spend hours per month shopping around to make sure that we spend that funding wisely and our service users benefit from it as much as possible, however many times the budget approver declines the purchase request because we are using a different provider than the ones we’re contracted with. They won’t let us buy anything from anyone else as apparently they will be fined. The contractors charge stupidly high prices and definitely aren’t good value for money.

Last week we submitted a request for 150 units from online sellers at a total cost of £1355. This is just under £10 per unit which is brilliant and it means our service users will have the items before Christmas and we still have some more money to spend on other things. The approver declined the purchase and asked us to use the contracted provider charging £27.50 per the SAME unit which is totalling £4125 and £20 delivery fee (the cheek of it!!). We are deflated and feel so let down by this corrupt system as this means that we can only buy for 54 service users and the rest will have to wait until the next budget is received next May.

Our service users are mainly people from very deprived backgrounds, with complex mental health issues, traumas and addictions. How can you keep on making cuts to save money and yet sign contracts with wealthy businesses that are constantly salivating over profits? AIBU to think that these contracts should end and we should be allowed to shop around given the tight budgets that we’re given?

OP posts:
New posts on this thread. Refresh page
Puzzledandpissedoff · 14/11/2024 10:37

TonTonMacoute · 13/11/2024 19:40

DH is a commercial contract specialist and has worked on many big government IT contracts. The amount of money wasted in that area could run a small country for a year.

Only a small country, TonTonMacoute? Wink

I'm only waiting for someone to link the usual reports "proving" how utterly efficient such bodies really are, as if anyone believes them in light of hard experience

And then it's wondered why current public employment involves an automatic rejection for some employers looking for real responsibility ...

GoBackToTheStart · 14/11/2024 00:57

Apart for national security type matters no contract should be off limits to the people whose money is being spent. It's a favourite of local councils to avoid answering tricky questions about how and why contracts are awarded by claiming this sort of crap.

Contracts should be published already. Under the new law, they will have to be. However there are always going to be areas exempt from that - government can't just publish the entire pricing and commercial model of a private company to all of a supplier's competitors, nor the IP/know-how in their solutions. That genuinely is commercially sensitive information and will continue to be redacted.

Laughingravy · 14/11/2024 00:06

Another thing that really grinds my gears about all this is when any authority spending tax payers money claims commercial confidentiality to avoid telling the truth. Apart for national security type matters no contract should be off limits to the people whose money is being spent. It's a favourite of local councils to avoid answering tricky questions about how and why contracts are awarded by claiming this sort of crap.

Enchente · 13/11/2024 21:17

Lifeofthepartay · 13/11/2024 20:59

But you can't see it like meh it's only £3k difference, it is 4 times the cost and it's costing the tax payer, imagine if every public service could be run at a quarter of the current costs...

💯

I’ve worked at start-ups that have gone on to be hugely successful businesses. The mindset that a 4x difference is ‘immaterial’ is completely alien to me and says it all. And not it’s just about the price. Those companies don’t grow by having poor quality products with dodgy supply chains.

Lifeofthepartay · 13/11/2024 20:59

Cocorico22 · 12/11/2024 20:26

Something doesn’t add up here, we need more info. I’ve been a civil servant so know procurement can be shocking, but there are always ways around like non catalogue purchase, creating a new supplier etc, especially for small sums (comparatively) like £7k. Why is the budget for your team so small? Why do you not have people above you/managers who can challenge that kind of decision and support doing something sensible.

To be honest the unit cost difference is scandalous, but £4k versus £1k is not going to break the department, so it may not be worth the hassle/time/expense of sourcing the cheaper item as a one off as bad as that sounds.

if you are a manager… where’s your business case/financial analysis? Use this as a way to increase your budget for future years

But you can't see it like meh it's only £3k difference, it is 4 times the cost and it's costing the tax payer, imagine if every public service could be run at a quarter of the current costs...

Enchente · 13/11/2024 20:40

FartSock5000 · 13/11/2024 08:57

Approved suppliers and contractors have gone through a vetting and onboarding process. They have won the right to be the authorised supplier/contractor by bidding for the contract. There is a legal agreement in place.

So, just because you can get 10 pens for £1 in Poundland does not mean you can save money and buy them from there. You have to use the supplier/contractor who was awarded the stationary contract or you are violating/breaking the contract in place with that company.

The issue isn't corruption or common sense. The issue is the tendering process and the team who award the contracts because they don't always go for the cheapest deal. Sometimes they pay more to go with a company who is solvent with a solid financial history and has all the appropriate insurances and procedures in place that align with the authority who has given them the contract.

You could try to arrange certain items via petty cash if you have enough though. That's one way around some purchases.

The issue is, some people can justify the rationale as you’ve outlined. It’s sensible. However, it still doesn’t necessarily equate to ‘value for money’. Some people have a comfort factor that ticking all the boxes means, on average, good value whilst mitigating risk.

I disagree.

At some level, senior management, and I guess that means up to Wes Streeting and co, that we need to view risk differently.

The rules of 20+ even, 10 or 5 years, ago no longer apply, yet we’re attempting to apply them to a global economy environment with organisations with agile needs. It needs an overhaul.

TonTonMacoute · 13/11/2024 19:40

DH is a commercial contract specialist and has worked on many big government IT contracts. The amount of money wasted in that area could run a small country for a year.

Puzzledandpissedoff · 13/11/2024 19:29

Senior managers will always refuse to challenge or intervene ...

And that's your answer to why the public sector "always gets a bad deal", @Atlanticwinds; nobody cares about being responsible for what's spent because it's not "their" money ... though the endless kickbacks may well be

Our own local authority has used the same maintencnce company for over 30 years, and apart from prices being several times anyone else's they're guaranteed to build faults into any work they do to engineer repeat visits/billing

This is how £20,000 (no that's not a typo) came to be spent on an internal door for our community facility, and that was faulty too, but never mind ... they still pay generous fees to a number of councillors as "consultants", so that's okay

Roundandback · 13/11/2024 18:53

Atlanticwinds · 12/11/2024 22:27

Of course our roles aren’t around managing 7k budget. We’re all specialists and provide support to specific service users and are given 7k to support our work. I did mention in the thread that we spend a few hours per month shopping around to get the best price/quality to get items for people on our caseload, not our full 37 hours per week! I wish! We’re sinking and have to support around 600 men per month between us 4.

Sorry, I was replying sarcastically to the poster I quoted - I absolutely believe that is not all you're doing!

RowenaCoxwell · 13/11/2024 18:48

Hi OP, you might find your contract has a benchmarking clause, or terms that state they can only apply a margin of x%. If not, at the very least it’s worth contacting your supplier and showing them the price difference and remind them that they’re receiving from the public purse and you need them to do better.

FelixtheAardvark · 13/11/2024 16:59

nightmarepickle2025 · 12/11/2024 20:17

This is widespread across the public sector but no one’s ever been able to explain why the state gets such a bad deal?

There are no proper budget controls with State contracts. I am being serious when I say this.

A quote for the Civil Service will be nowhere near as tight as a quote for the private sector. If you think NHS contracts are a problem, just wait until you see defence contracts.

The difference is shareholders demand their Directors run companies economically. The Treasury is really lax by comparison.

KenAdams · 13/11/2024 16:42

A lot of these are examples of bad procurement and contract management though. Who on earth on your commercial team is accepting a £40 increase for travel through London?

I've worked in many a public sector commercial role. The one place where suppliers take the absolute piss and fleece customers is the NHS. If Wes Streeting can sort out NHS efficiencies he deserves a knighthood. He's going the right way in making Chief Execs accountable. They're not held accountable for anything at the moment.

I also agree with PP re Donald Trumps public sector overhaul. We need it here too - so many people who have worked their way up the chain through longevity rather than talent. I think it's coming though, Labour made several nods to it in their manifesto.

ChildrenOfTheQuorn · 13/11/2024 16:29

GoBackToTheStart · 13/11/2024 14:54

(That sounded a bit snarky - it wasn't meant to, I'm genuinely interested to know what you've seen)

As am I.

GoBackToTheStart · 13/11/2024 14:54

(That sounded a bit snarky - it wasn't meant to, I'm genuinely interested to know what you've seen)

GoBackToTheStart · 13/11/2024 14:47

We used to respond to proposals and submit tender offers on a regular basis for those where we could offer the service requested. We got frustrated at the level of deception required to get through to the initial stages. The procurement teams must know what's going on.

What do you mean by "the level of deception" exactly?

Laughingravy · 13/11/2024 14:44

@Morph22010 You even get this crap in the private sector. When I worked at Carrillion I looked after engineers doing gas and electrical repair and maintenance. One branch of a client had their staff room fridge fail. So engineer takes a day out of schedule work (Highlands of Scotland) to confirm fridge is dead. I then order a new fridge from our approved supplier who charges way more than the Currys price. It was at least delivered but the branch won't plug it in and shove it back under the counter. Nope our engineer takes another day out to do that for them.
It was such stupid contracts that sent Carrillion down the toilet.

GingerLiberalFeminist · 13/11/2024 14:20

The alleged advantage in contracting out public services is public services can be supplied cheaper. But the reality is the contracts hold public services to ransom - look at nhs medicine prices.

Peoplearebloodyidiots · 13/11/2024 13:55

Op the reason is because there is legislation in place that governs public procurement, and your department would potentially be in breach of the law if you did what you wanted. This could open up your department to legal challenges from aggrieved suppliers, if what you did was non-compliant which then would cost the taxpayer even more money to defend.

I'm not at all suggesting that what is happening now is ok. Whatever you do must be compliant with current procurement legislation and efficient in terms of the current contractual landscape. A cheaper supplier might have a less favorable performance, therefore you cannot just go on the initial cost of things, you need to consider the whole life cost e.g. procurement costs, running costs, cost of resource required to procure and manage additional contracts, and factor in any costs of risks that using a new supplier, plus a new supplier may not agree to as favorable terms as your existing supplier.

It's not as simple as you think.

GoBackToTheStart · 13/11/2024 13:28

If you don't have enough clipboards in your cupboard, the answer isn't "I should be able to buy one from Amazon". It needs to be dealt with before that - there should be procedures in place internally to manage stock so it's not an issue and doesn't actually get to that point.

Having seen some of the incredibly dodgy things that public bodies/employees try to do, whether intentionally or through genuine ignorance of the law, and seeing that it is only procurement law that stops them from doing it, I'm glad there are appropriate protections to encourage the public sector to stay on the straight and narrow with our tax money, rather than having carte blanche to spend without checks and balances. If that means authorities having to pre-plan a bit better, so be it.

LondonPapa · 13/11/2024 09:42

Atlanticwinds · 12/11/2024 20:25

That’s a great suggestion! I will write to her but not sure what she can do as there are so many contracts signed regionally. They might say that they have no authority over it as they trust the governors and procurement managers to use their due diligence before signing the contracts.

Aside from the rest, this will get you nowhere. You’re talking about a misplaced sum for HMT.

As for what you do, you’re talking about casework and supporting individuals with regional procurement contracts, I presume you’re in DWP or DfE (or an ALB - it’s clear you’re not talking about departmental budgets but directorate so unsure if ALB). I’d go further and say you’ve provided a lot of identifying information, so even if not in DWP/DfE, if someone happens to find this in your department, there will be an investigation. You’ve broken security protocol over a few thousand pounds.

As for the procurement process, there are strict rules and regulations around how they must be tendered, bidding, and the final choice. There is unlikely to be obvious corruption (something you’ve said in another comment), all contracts would be above board. If you really don’t believe they are, you’re intranet will detail how to contest.

I would advise you ask for this thread to be removed. You’ve put enough details out there along with serious allegations, which if uncovered and linked to you at work, will get you in trouble with security, not following whistleblowing rules, etc. and you’ll end up in a disciplinary for gross misconduct with the potential outcome of being sacked.

PassCaring · 13/11/2024 09:39

I am long enough in the tooth to remember CS buying without these contracts. We used local office supplies for stationery. Got all sorts of nice stuff - branded post its, decent grade paper. Wouldn't pass the Daily Mail test. Same with GPC (government credit card) all purchases over a certain amount have to be published on the internet. Spending moved from it to these big contracts.
Have to say our travel booking is nothing like above examples, instant purchase and can use rail cards. It allows the centre to monitor budgets, CO2, and other targets. If everyone was purchasing individually there would be no over sight.

friskybivalves · 13/11/2024 09:29

@Bjorkdidit Agree it is so frustrating. I have a railcard so would be saving the taxpayer loads of money to use it. LOADS. Our provider system won't accept them. [It would be so easy for them just to introduce software that did, like Trainline etc.] But nor can I book my own travel and claim it back thru expenses. Grrrr.

TheSecondMrsCampbellBlack · 13/11/2024 09:28

ChildrenOfTheQuorn · 12/11/2024 21:40

The government places contracts with approved suppliers because these suppliers have been through a rigorous vetting process. They have had to agree to CCS T&Cs which are designed to be equally fair to the Buyer and Supplier. When buying directly from the Supplier, the government would be beholden to their T&Cs and what might end up being cheaper could cost the government (taxpayer) much more in the long run. With all due respect, there are procurement teams who negotiate contracts day in and day out and price is only one component potential suppliers are assessed on for good reason (e.g. Carillion bailout).

Agreed. YABU OP.

theitchyandscratcyshow · 13/11/2024 09:20

FartSock5000 · 13/11/2024 08:57

Approved suppliers and contractors have gone through a vetting and onboarding process. They have won the right to be the authorised supplier/contractor by bidding for the contract. There is a legal agreement in place.

So, just because you can get 10 pens for £1 in Poundland does not mean you can save money and buy them from there. You have to use the supplier/contractor who was awarded the stationary contract or you are violating/breaking the contract in place with that company.

The issue isn't corruption or common sense. The issue is the tendering process and the team who award the contracts because they don't always go for the cheapest deal. Sometimes they pay more to go with a company who is solvent with a solid financial history and has all the appropriate insurances and procedures in place that align with the authority who has given them the contract.

You could try to arrange certain items via petty cash if you have enough though. That's one way around some purchases.

This. I agree that it's incredibly frustrating when you're on the ground and you can't do what you want to do because of the process. I also know it's not as straightforward as some people seek to think it is, to just buy stuff from Amazon as it's much cheaper.
It's a legal process that will take time to change. I honestly don't think it's about corruption.

Bjorkdidit · 13/11/2024 09:13

@FartSock5000 'You could try to arrange certain items via petty cash if you have enough though. That's one way around some purchases'

There is no petty cash. No mechanism to reclaim where I work. For trivial cost occasional items, people just buy them from their own money and suck up the cost because they can't face the admin of going through 'the process', waiting weeks if not months for things we need 'now'.

I wanted a clipboard for some field work. There was none in the stationery cupboard and no-one had one in our office. I was told I could order one and it would be added to the next bulk order which comes once a quarter, so would have taken weeks.

I bought one for £3 from either Amazon using my Prime delivery or maybe picked on up in somewhere like Home Bargains.

Swipe left for the next trending thread