Government commissioners and procurers of public services should focus on achieving long-term
value for money, an OFT study has shown.
The OFT's (Office of Fair Trading) study, called Commissioning and Competition in the Public Sector, was published on March 15, and outlines some practical steps for commissioners and procurers to consider when designing or implementing their strategies.
The steps include: reducing barriers to entry and exit, which would allow wider participation and more efficient government control; promoting genuine choice by giving end-users of public services the tools to make well-informed decisions; ensuring the right incentives to help commissioners, procurer and suppliers focus on long-term value for money.
The report states that by following these steps, "commissioners and procurers will be better equipped to balance some of the difficult trade-offs they face - such as the choice between local versus centralised procurement or between large and small contracts."
"This study aims to help commissioners and procurers in central, devolved and local government to more effectively leverage competition as a means of driving better value and services for taxpayers and greater productivity for the economy," said Sonya Branch, OFT senior director.
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