Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what assessment he has made of the adequacy of the due diligence undertaken by the Government in advance of awarding public contracts to private sector providers as a result of the collapse of Carillion.

Contracts are never awarded lightly: each has an agreed and robust process. Government has always been compliant with public procurement regulations and follows these diligently when assessing the suitability of suppliers to deliver a particular contract.

As noted by the Chancellor of the Duchy of Lancaster’s speeches in June and November 2018, the Cabinet Office is currently taking forward a package of reforms to Government outsourcing policy. This includes creating a ‘playbook’ of guidelines, rules and processes for departments to follow when they outsource.

We are also reviewing how we assess suppliers’ financial health and what financial information we should seek during the procurement process. This will enable the Government to assess the level of risk that should be accepted, the extent to which we rely on historical financial information as an indicator of future financial health, and whether it is appropriate to seek and rely on forecast information. We will be issuing new guidance for departments on assessing the financial and economic standing of bidders in the coming months.