Comment

19.04.18

Get what you pay for, and only pay for what you get

Source: PSE April/May 2018

Matthew Sparkes, deputy director for financial services at the Crown Commercial Service (CCS), on the public sector benefits of the brand-new Spend Analysis and Recovery Services framework.

Every year, government bodies including central departments, local authorities, universities, schools, NHS trusts and arm’s-length bodies are incorrectly charged for the goods and services they procure.

In the private sector, spend recovery services are a commonly-accessed route to recovering these costs, ensuring that organisations only pay for the goods and services they actually receive. The public sector has been slower to respond.

CCS – the UK’s largest public procurement body, responsible for shaping and delivering government procurement policy – estimates that £220m in overcharges and incorrect payments could be recovered over the next four years. To facilitate the identification and recovery of these valuable funds, CCS has created the Spend Analysis and Recovery Services framework.

There are 19 suppliers appointed to the framework, including companies with specialist expertise in key areas like utilities, telecoms and VAT. They will work in partnership with CCS and public sector organisations on a contingent ‘no win, no fee’ basis to analyse financial transactions and commercial agreements – identifying overpayments, errors or financial benefits which have not been previously realised.

Suppliers on the agreement can also support public bodies with reviews of contract compliance, looking at specific areas of their procurement activity. Contracts are analysed to make sure an organisation is only paying what it should be. If an organisation is not fully benefitting from existing deals and services, the suppliers will identify it so it can be rectified.

These reviews can analyse and recover errors or overcharges up to six years after the error or overpayment has occurred.

There are no upfront costs, and the process requires minimal internal resources from customers – suppliers do all the heavy lifting. Customers can also gain access to CCS’s commercial expertise, and support to access the breadth of CCS’s wide range of commercial solutions for financial services.

The use of spend recovery services is commonplace in the private sector, not just to identify and recover valuable funds, but also to understand where to make process improvements that ensure errors won’t happen again.

By combining our own CCS category expertise with our suppliers’ commercial expertise, we can ensure that the public sector pays only for the goods and services it actually receives.

How to use the agreement

There are three ways to begin the process of appointing a supplier through Spend Analysis and Recovery Services:

  • Further competition: Any organisation with significant spend can drive down suppliers’ percentage fee by holding a further competition – this is when an organisation asks suppliers to bid against each other for business. This can provide real value for your organisation;
  • Direct award: If an organisation has found a supplier that offers the services it needed, and is happy with the percentage fee they are offering, then direct award offers a fast, simple solution;
  • Aggregation: If a department is part of a wider organisation, it can be financially beneficial to organise an aggregation. This is when you combine your requirements, allowing you all to get the best deal from bulk ordering.

The agreement is broken down into seven lots covering the largest areas of government procurement spend, including statement transaction review; end-to-end review; and contract compliance relating to telecoms/mobiles, contingent labour/agency staff, VAT, and property/rental review.

 

FOR MORE INFORMATION
W: www.ccsheretohelp.uk

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

latest public sector news

Wiltshire Council withdraws £20m plans to close special schools and reopens consultation

26/03/2019Wiltshire Council withdraws £20m plans to close special schools and reopens consultation

Wiltshire Council has announced it is extending its consultation on controversial plans to restructure its special education services and has wit... more >
South Yorkshire leaders make breakthrough in £30m devolution deal

26/03/2019South Yorkshire leaders make breakthrough in £30m devolution deal

The four South Yorkshire council leaders and mayor Dan Jarvis have announced a “breakthrough” in the stalled devolution deal for Shef... more >
Council leader reinstated after online Tommy Robinson comments amid Tory Islamophobia row

26/03/2019Council leader reinstated after online Tommy Robinson comments amid Tory Islamophobia row

The Conservative council leader who was suspended for sharing a message supporting far-right activist Tommy Robinson has now been re-instated by ... more >
149x260 PSE Subscribe button

the raven's daily blog

Councils Can: LGA launches Spending Review campaign

18/03/2019Councils Can: LGA launches Spending Review campaign

Lord Porter, chairman of the Local Government Association, outlines his organisation’s campaign to make sure local government tops to government’s list for this year’s Spending Review. Our #CouncilsCan campaign to influence this year’s Spending Review is well underway and gathering momentum. The money local governm... more >
read more blog posts from 'the raven' >

interviews

Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the o... more > more last word articles >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

public sector focus

Flexible working being led by the public sector, Softworks survey finds

26/02/2019Flexible working being led by the public sector, Softworks survey finds

The public sector is leading the way in regar... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technolo... more >