In its written and oral evidence to the Committee, EEF argued that, despite positive intentions and a range of initiatives, government procurement processes remain flawed and are failing to achieve full value for the taxpayer.
EEF’s evidence was based on a report published earlier this year ‘Innovation and Public Procurement’. The report contained extensive interviews with defence and medical companies which showed too much emphasis is still being placed on short term efficiency savings at the expense of long term planning. Furthermore, public procurers also often lack the skills or the incentives to purchase innovative solutions.
In response, EEF believes significant investment is required in the skills of procurers and to simplify the guidance that they have to follow. Government must also make a break with the previous feast and famine approach and communicate a long-term procurement strategy that would provide suppliers with much greater certainty over demand. Taking these steps would stimulate greater innovation by business, improve public services and provide tax payers with better value for money.
Commenting, EEF Director General, Martin Temple, said:
“Given the size of its budget, government can play a critical role in fostering efficient procurement. However, whilst companies in the defence industry have seen a significant improvement overall progress has been patchy despite a range of reviews and initiatives. Business remains frustrated by the high administrative costs and long delays involved in tendering for government contracts.”
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Notes to Editors
EEF’s proposals are contained in a report entitled ‘Innovation and Public Procurement’. This can be downloaded from www.eef.org.uk
EEF, the manufacturers’ organisation is the representative voice of manufacturing in the UK with a federation of 11 regional Associations, UK Steel and ECIA, the Engineering Construction Industry Association. The EEF has a growing membership of almost 6,000 companies of all sizes, employing some 900,000 people from every sector of engineering, manufacturing, engineering construction and technology-based industries.