Commons Sense

House of Commons · Ministers' Questions

Government Contracts: Underperforming Suppliers and Legislative Proposals

Thursday 13 January 2022 · 9 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 2 Not answered 0

Key points

  • Government intends to bring forward legislative proposals to reform public procurement when parliamentary time allows.
  • Upcoming procurement reforms will improve systems for excluding underperforming suppliers.
  • A new procurement Bill is being prepared to include detailed policies and reforms.

Topics (select to filter)

Questions & Answers

Q1 Kate Osborne Lab Jarrow and Gateshead East
Business & Trade
Context

In December 2020, the government published a Green Paper on transforming public procurement.

Question

When will legislative proposals to reform public procurement be brought forward? The December 2020 publication discussed making it easier for buyers to account for previous poor supplier performance and enforcing clearer rules about excluding risky suppliers.

Answer from Michael Ellis

We intend to bring forward the detailed and ambitious legislative proposals from the December 2020 Green Paper on transforming public procurement when parliamentary time allows. These reforms will make it easier for buyers to take account of previous poor performance by suppliers, and there will be clearer and stronger rules about excluding suppliers that pose an unacceptable risk.

Answered
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Q2 Bob Blackman Con Harrow East
Business Compliance
Context

The Prime Minister is bringing forward procurement reforms worth £300 billion a year to the UK economy.

Question

What actions will be taken to get contractors to supply services as contracted and what steps will be taken to cancel contracts with underperforming suppliers?

Answer from Michael Ellis

Under the public contract regulations, contracting authorities can use selection criteria based on previous poor performance by suppliers. The upcoming reforms will improve these systems across the board.

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Q3 Daniel Zeichner Lab Cambridge
Business & Trade Agriculture & Rural Affairs
Context

The Government maintains buying standards for food and catering services. The shadow Chancellor has pledged that Labour will ensure public bodies report on how much British produce they buy.

Question

What are the government's plans to bring up-to-date food procurement standards, or do they support open season for foreign imports?

Answer from Michael Ellis

A new procurement Bill is being prepared that will include detailed policies and reforms. The Conservative party supports free trade, while the Labour party's stance is unclear.

Partly answered

Not addressed: Specific plans to update food procurement standards were not provided

How: Do Not Know About The Labour Party

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Q4 Nick Smith Lab Blaenau Gwent and Rhymney
Standards & Ethics
Context

The Government's VIP lane for personal protective equipment contracts has been ruled unlawful.

Question

Will there be immediate publication of emergency procurement contracts after their award to restore public faith?

Answer from Michael Ellis

The court ruled that the Government's industry call to arms was open, transparent and justified in a time of national emergency. The technical breaches were minor.

Not addressed: Publication of all emergency procurement contracts immediately

How: Do Not Accept Characterisation, Ruling Was Technical

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Q5 Nia Griffith Lab Llanelli
NHS Business & Trade
Context

A local SME invested over £700,000 in automating its hand sanitiser production to meet UK Government Department needs.

Question

What will be done to recognise the resilience of British firms and improve the uptake of their products by Government Departments?

Answer from Michael Ellis

Companies should be thanked for providing support during a national emergency. The Minister invites the hon. Member to share specific examples.

Not addressed: Recognition of resilience and improving uptake of British-made products by Government Departments

How: Write To Me With That Particular Example

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Q6 Kate Osborne Lab Jarrow and Gateshead East
NHS
Context

The Government broke the law by handing out contracts worth huge sums to those with political connections.

Question

When will all emergency procurement procedures end and all emergency covid contracts be published?

Answer from Michael Ellis

Emergency procurement is routine outside pandemics for various reasons. A new procurement Bill will look at different ways of proceeding.

Not addressed: Ending emergency procurement procedures and publishing all emergency contracts immediately

How: Emergency Procurement Happens All The Time

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Q7 Tim Loughton Con
Business & Trade Agriculture & Rural Affairs
Context

Post Brexit, there is an opportunity to support local procurement.

Question

Will the Government take a proactive lead to support local procurement which benefits local small businesses and farmers?

Answer from Michael Ellis

Thanks to the work of Lord Agnew, my hon. Friend can look forward to further progress on supporting local procurement.

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Q8 Rachel Hopkins Lab Luton South and South Bedfordshire
Taxation Standards & Ethics
Context

The Government's use of emergency procurement during the pandemic raised concerns over transparency, conflicts of interest, and unsuitable suppliers. Despite nearly two years passing, departments continue to bypass open competition and scrutiny under emergency regulations.

Question

The Government's use of emergency procurement during the pandemic has raised concerns around the transparency of contracts, potential conflicts of interest and the unsuitability of suppliers. Nearly two years on, Government Departments can still use those emergency regulations to bypass open competition and scrutiny. That is unacceptable, and it implies that Departments have failed to plan ahead to meet demand. Will the Minister explain why that has been allowed to continue?

Answer from Michael Ellis

The availability of an emergency mechanism for procurement existed prior to the pandemic. It has taken place under Governments of all political colours, and it will continue to take place occasionally. The contracts signed by Government with third parties are myriad, and there will frequently be circumstances of supply, or circumstances that relate to particular individual cases where emergency mechanisms have to apply. That is routine and it continues on a regular basis when it has to.

Partly answered

Not addressed: The specific ask for an explanation of why departments are still allowed to bypass normal procurement processes under emergency regulations was not directly addressed.

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Q9 Rachel Hopkins Lab Luton South and South Bedfordshire
Economy Transport Standards & Ethics Local Government
Context

Recent civil service fast stream recruitment resulted in more successful applicants coming from London than the entire Midlands and North of England combined, with external applicants from less privileged backgrounds comprising over half but only a third being offered jobs.

Question

Good procurement that benefits the whole country needs good decisions made by a civil service that reflects the society it serves. However, the civil service fast stream recruitment over the last three years—from 2019 to 2021—resulted in more successful applicants coming from homes in London than the whole of the midlands and north of England put together. Although young people whose parents did not go to university made up more than half of external applicants, they made up only less than a third of those who were offered jobs. What is the Minister doing to rectify that regional and class discrimination in the civil service fast stream recruitment?

Answer from Michael Ellis

Procurement or otherwise, I am proud of our civil service, and I hope that the hon. Lady is, too. She criticises the civil service and makes a class warfare-type assertion about it—I do not accept that. This country, under this Government, is levelling up. We are levelling up across the country and making reforms in all our mechanisms of government, including in the national health service, housing, the economy and transport, and we are doing it in the civil service, too.

Not addressed: The specific ask for measures addressing recruitment imbalance was not addressed; instead, the Minister shifted focus to broader levelling-up initiatives.

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