Today, the Defence Committee publishes the Government response to
the Sub-Committee on the Treatment of Contracted Staff for the
MoD’s Ancillary Services’ report.
The Sub-Committee’s original report stated that “contractors drop
standards and squeeze employees to raise their profit margin” but
warned that the MoD is not always willing to step in and enforce
expected standards.
The report raised concerns around Capita’s involvement in the
Defence Fire and Rescue Service (DFRS), calling for the MoD to
review Capita’s performance and saying it was “absurd” that the
MoD is not allowed to examine a contractor’s previous performance
in deciding on contract awards.
Today’s Government response set out the Government’s position
regarding the Committee’s concerns on procurement and factoring
in past performance, stating that: “the new Procurement Bill
includes a discretionary ground to exclude a supplier for breach
of contract and poor performance, which is broader than the past
performance ground in the PCR [Public Contracts Regulations]”.
In response to the Committee’s concerns around Capita, the
Government says “several factors can lead to increases or
decreases in staffing levels” and that the “DFR has seen no
evidence of a reduction in response capability”. The Government
reiterated that Capita’s risk management plan is subject to
agreement by the MoD.
Chair's comments
Chair of the Defence Committee, MP, said:
“Our report found that the outsourcing practices of ancillary
services are far from exemplary and little consideration has been
afforded to providing improved services-inhouse. The Ministry of
Defence must do better or risk a deterioration in the health of
vital defence services.
I’m pleased to hear that work will be done through the
Procurement Bill to improve the rules and regulations around
awarding contracts. Changes to legislation must ensure that the
Government are able exclude organisations with poor past
performances. We need the best company for the job, not just the
lowest bidder.
However, there is little reassurance that Government will step in
to prevent Capita reducing manpower in the Defence Fire and
Rescue Service. Capita’s track record of underperformance should
ring alarm bells in Government and the Committee will continue to
monitor this issue.”
Further information
