Commons Sense

House of Commons · Ministers' Questions

Government Contracts: Covid-19

Thursday 1 October 2020 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 5 Not answered 0

Key points

  • The private sector has delivered over 15,000 ventilators in under four months to support the NHS.
  • The Department of Health and Social Care has procured over 32 billion items from UK-based manufacturers and international partners.
  • The Government's response to concerns about contract performance includes reviewing the use of consultants and the cost implications.

Topics (select to filter)

Questions & Answers

Q1 Ian Byrne Lab Liverpool West Derby
NHS Economy Business & Trade
Context

The question arises from concerns over the adequacy of supplier performance and value for money achieved under government contracts established to address the pandemic.

Question

What assessment has been made of (a) supplier performance and (b) value for money achieved under Government contracts established in response to the covid-19 outbreak?

Answer from Julia Lopez

The private sector has played a vital role in the Government's response to the covid-19 outbreak, such as delivering over 15,000 ventilators in under four months to support the NHS and changing production facilities so that by December we expect that UK manufacturers will be meeting 70% of the demand for personal protective equipment, compared with just 1% before the pandemic. Being able to procure at speed has been critical in providing that response. However, we have been clear that all contracts, including those designed to help tackle coronavirus, must continue to offer quality public services and achieve value for money for taxpayers.

Answered
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Q2 Debbie Abrahams Lab Oldham East and Saddleworth
NHS
Context

Criticism has been directed at the government for bypassing the NHS, outsourcing billions of pounds-worth of contracts without transparency, failing to deliver necessary PPE and testing capacity on time.

Question

The Minister's response says more about the Government's failure to implement recommendations from Operation Cygnus than their ability to respond effectively. Contracts were outsourced in back-room deals that failed to deliver crucial supplies and services. Will they stop defending these actions and provide requested information on contracts?

Answer from Julia Lopez

The DHSC has procured over 32 billion items from UK-based manufacturers and international partners—an incredibly difficult task at an incredibly difficult time. We received over 24,000 offers of help from 15,000 individual suppliers, and all were prioritised according to volume, price, clinical acceptability and lead time, meaning the time from an offer being accepted by the DHSC to a supplier delivering the items. Of course I am happy to look into any offer of help from a business that was found wanting, but I refer the hon. Member to the view outlined by the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Meg Hillier), who praised the Department's response to procurement.

Partly answered

Not addressed: Providing requested information on contracts

How: Looking Into Any Offer Of Help From A Business That Was Found Wanting, Referring To The View Outlined By Another Mp

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Q3 Ruth Cadbury Lab Brentford and Isleworth
NHS
Context

Track and trace services led by public health teams have been more effective at lower cost compared to the outsourced system in NHS England. In Wales, contact rates are significantly higher.

Question

Track and trace services led by experienced public health teams have proven more effective and less costly than the outsourced system used in NHS England. In Wales, the contact rate is over 90%, whereas in England it is around 70%. When will the government recognise value for money and redirect procurement towards established local health networks?

Answer from Julia Lopez

It has been an extremely challenging time, as I have said, and the private sector has been a valuable partner in everything we have done. The contracts awarded have been extremely valuable in ensuring that we can deliver capacity at pace. If the hon. Lady has any concerns, I am happy to look into them.

Partly answered

Not addressed: Redirecting procurement towards long-established local health networks

How: Valuable Partner, Looking Into Concerns

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Q4 Ian Byrne Lab Liverpool West Derby
Business & Trade
Context

The Competition and Markets Authority is investigating the proposed merger of two outsourcing giants, Mitie and Interserve. Both companies hold government contracts worth over £2 billion.

Question

Given that both companies hold Government contracts worth over £2 billion, what steps are being taken to review the implications of the merger considering the risk to public funds and employment terms?

Answer from Julia Lopez

I am afraid that the Competition and Markets Authority is not within my remit, but I am happy to look into any concerns, because contracts and procurement performance are within my remit, and I want to ensure that we receive value for money for the taxpayer in everything we do.

Partly answered

Not addressed: Competitions and Markets Authority's review

How: Not Within My Remit, Looking Into Concerns

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Q5 Helen Hayes Lab Dulwich and West Norwood
NHS
Context

The next deadline for renewal of the contract with Sitel is this Sunday, 4 October. The MP questions the justification for continuing with a privatised model.

Question

The Government's contract with Sitel for test and trace is renewed on an eight-week basis, with a two-week notice period. Will all renewal dates be published and will they justify why the centralised model continues despite local councils' effectiveness?

Answer from Julia Lopez

As I have said, without the private sector, we would have struggled to deliver the testing capacity that we now have. Serco and Sitel are approved suppliers on the Crown Commercial Service's contact centre framework, and they gain their places through fair and open competition via Official Journal of the European Union procurement. Value for money and capability were part of the assessment criteria. But if there are other suppliers that would bid well for the contracts, we are happy to look into that.

Partly answered

Not addressed: Publishing all renewal dates

How: Looking Into Concerns About Other Suppliers

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Q6 Helen Hayes Lab Dulwich and West Norwood
Economy Taxation Employment
Context

Government spending on consultants has risen sharply, with contracts awarded without competitive tender during the pandemic. Lord Agnew raises concerns about reliance on overpriced consultants.

Question

Spending on consultants rose by £1 billion since 2016, with many contracts awarded without competition during the crisis. Does the Minister agree that there is poor value for money and when will a review of controls begin?

Answer from Julia Lopez

Consultants play an important role in what the Government try to achieve on particular projects, but the hon. Lady is right: we have concerns about the cost of those consultants and whether we are too reliant on them, and we are actively reviewing that. I am working with my colleague Minister Agnew on these matters.

Partly answered

How: Actively Reviewing

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