In #outsourcing news, provider @Ameyplc has just agreed to end its £2.7bn infrastructure maintenance contract with Birmingham City Council by paying £215m in cash
First, read our report 'Valued Partnerships' which explains:
- what social value is
- how your sector and type of business can demonstrate it
- the approaches and models available
- some details of government's approach previously and going forward
First up is @Ameyplc who announced yesterday record losses, not least due to their contracting kerfuffle with Birmingham council. However, revenue is actually up and with a new purchaser on the horizon, things aren't looking too bad.
So whilst I was busy at my PhD graduation this weekend, @UKLabour (rudely 🙄) announced an "in-sourcing" policy, essentially amounting to an ideological ban on outsourcing for local authorities.
Here's why I'm unimpressed - a "Jim Halpert" gif thread
1st - I'm happy to support many of the proposals including a better "make or buy" decisions, greater transparency, and ensuring value-for-money. ID'ing services absolutely which aren't suited to outsourcing is crucial, as is training so contracting is done well! 👍@UKLabour
2nd - However, Labour should be ashamed at the report's sweeping generalisations.
Labour say "outsourcing is a broken business model" yet ignore the majority of outsourcing which works well, pointing only to failures. I could do the same with inhouse contracts
This marks 2nd time this month that a central govt dept has been forced to pay compensation for bad procurement (the last being the @transportgovuk paying @LeShuttle £33m as a result of the No Deal Ferry Fiasco) /2
@reformthinktank has worked extensively on the question of improving government outsourcing (👇), including improving the processes and methods for doing so, and yet we see the same mistakes being made time and again. /3
In other #procurement news, @BorisJohnson revealed that he views the £250bn of government procurement as a cash cow to fund his other policy promises through "savings" 💰
Here's why we @reformthinktank think this is awful procurement policy....
Second, with the renationalisation of some services going ahead, procurement spend will be higher as both transition costs and direct spend will increase (something I've written about before with @G4S and #probation)