Committees

Sourcing public services: lessons learned from the collapse of Carillion inquiry

Inquiry


Following the news of the collapse of Carillion, the Public Administration and Constitutional Affairs Committee launches an inquiry into how the Government and public sector manages the risks of outsourcing the delivery of public services.

The inquiry will look at how Government and the public sector makes decisions about how to source the delivery of public services, including the risks of concentrating a large number of contracts with a small group of large companies.

Terms of reference

The Committee invites written submissions from the public and interested organisations on:

1. Does Government make effective decisions on how to source the delivery of public services?

  • What framework should the Government use when deciding what the most appropriate approach to sourcing a function or service is? Are decisions made systematically and consistently?
  • Do policy makers have the right skills, information and incentives to make sourcing decisions effectively – including do they have the operational and commercial expertise to be able to understand what is deliverable
  • Does the public sector have the capacity to deliver services in-house when that is the most appropriate route?

2. What lessons need to be learned from the collapse of Carillion about how Government and the public sector manages the risk from suppliers throughout the life-cycle of outsourcing a public service?

  • Is the supply side of the market for outsourced public services too concentrated? What are the risks and benefits of a concentrated market?
  • What steps has, and could, Government taken to maintain a competitive market amongst suppliers?Does Government have the right skills to be able to procure and manage contracts with SMEs? Should contracts or tenders be structured differently? Are there other steps it can take?
  • Does the Government effectively monitor and manage risk for its largest suppliers, and does it have effective failure regimes in place? Does Government understand the public sector’s cumulative exposure to individual contractors? Is there effective co-ordination between different public sector bodies in managing contractors?
  • Do current procurement rules and policies allow risks to be managed effectively?
  • Does the public sector have the right skills and resources to manage and monitor contracts with suppliers effectively?

3. Given the concentration of outsourced public sector contracts into a small number of large companies do the rules on oversight and accountability of public services need to change?

4. Are there limits to what can be outsourced?

5. What lessons can be learned from PFI?

Reports, special reports and government responses

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7th Report - After Carillion: Public sector outsourcing and contracting
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
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HC 748
Report
Response to this report
9th Special Report - Government Response to the Committee's Seventh Report: After Carillion: Public sector outsourcing and contracting
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HC 1685
Special Report
9th Special Report - Government Response to the Committee's Seventh Report: After Carillion: Public sector outsourcing and contracting
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
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HC 1685
Special Report

Correspondence

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Letter to the Chair from David Lidington MP, 29 May 2018
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
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Correspondence
Letter from the Chair to the Chief Secretary to the Treasury regarding the Committee's Sixth Report, 26 June 2018
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
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Letter to the Chair from Michael King, the Local Government and Social Care Ombudsman, on outsourcing public services
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
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Correspondence

Oral evidence transcripts

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9 May 2018
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
Witnesses The Right Hon David Lidington MP, Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster, Gareth Rhys Williams, Government Chief Commercial Officer, John Manzoni, Permanent Secretary for the Cabinet Office and Chief Executive of the Civil Service
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Oral Evidence
8 May 2018
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
Witnesses Rupert Soames, Serco, Phil Bentley, MitieKarl Wilding, Director of Public Policy and Volunteering, National Council For Voluntary Organisations, David Walker, The Guardian, Matt Dykes, Senior Policy Officer for Public Services, Trade Union Congress
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Oral Evidence
24 April 2018
Inquiry Sourcing public services: lessons learned from the collapse of Carillion inquiry
Witnesses Sir Amyas Morse KCB, The Comptroller and Auditor General, National Audit Office; Margaret Stephens and Paul Davies.
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Oral Evidence

Written evidence

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Unilink Software (LCC0021)
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SAP (LCC0015)
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Bristow and Sutor (LCC0044)
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Other publications

No other publications published.

Contact us

  • Email: pacac@parliament.uk
  • Phone: 020 7219 3268 (general enquiries) | 020 7219 8335 (media enquiries)
  • Address: Public Administration and Constitutional Affairs Committee, House of Commons, London SW1A 0AA