Question to the Cabinet Office:

To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, pursuant to the Answer of 14 January 2022 to Question 101713, what estimate he has made of the cost implications of being locked into one supplier when determining value for money; whether his Department has made an assessment of the social and security value of supporting UK suppliers; and whether his Department is responsible for the economic and social impacts of individual Government Department outsourcing decisions.

Each Buying Authority has their own commercial spend controls that apply to their contracts with suppliers. Value-for-money and cost implications will vary on a case-by-case basis and it is down to each department to determine what these are in their respective circumstances. The Technology Code of Practice ensures that departments have multiple options available with a range of suppliers.

The driving principle behind public procurement policy is to award contracts on the basis of value for money. That means the optimum combination of cost and quality over the lifetime of the project, not just price alone. The best way to test for and to demonstrate this principle is via an open competition, as is required in most cases by public procurement legislation.

The government wants UK businesses to be successful in bidding for UK public contracts. That is why this government is committed to the procurement reform bill which will provide simpler, less bureaucratic processes for our businesses and better commercial outcomes for our public bodies - all while continuing to comply with our international commitments.

Through our new approach to extend the use of the Social Value Act, effective from 1 January 2021, additional social benefits can be taken into account in the delivery of contracts in a streamlined and standardised way, using policy outcomes aligned to this government’s priorities. From creating jobs and skills, building diverse supply chains and working towards Net Zero, embedding social value in procurement can help us to invest in our communities.

In addition to training commercial staff and making detailed guidance available to all on gov.uk, Cabinet Office and DCMS are working with supplier representative bodies and other external stakeholders to continue to build awareness.