§ Mr. Gordon MarsdenTo ask the Chancellor of the Exchequer (1) what mechanisms are used to assess how much extra contract work outsourced operations will need to take on; and how the viability of plans to generate this extra work is assessed; [103625]
(2) what measures of added value are currently used when assessing outsourcing plans in terms of (a) technology and (b) procedure; [103629]
(3) what measures of added value when assessing the benefits of outsourcing were used between 1994–97; and what additional measures have been included in the assessment of outsourcing plans since 1997. [103630]
§ Miss Melanie JohnsonUnder the Better Quality Services programme, Departments and other central Government bodies have plans to review their activities against five systems: abolition; privatisation; marketing testing; strategic contracting out; and internal restructuring.
Reviews follow procedures Set out in the Better Quality Services handbook, published in 1998, which emphasis the need for consultation with stakeholders. Individual reviews should result in added value through improvements in service cost and quality.
Where a decision to outsource is taken, Government procurement policy requires that to be based on value for money, which is the optimum combination of whole life cost and quality to meet the user's requirement. Under the procurement process, bidders are selected on their financial or economic standing and technical capacity and capability, and contracts are awarded on the basis of value for money. This includes consideration of the added value offered by a particular bid or through award of a particular contract.