Report finds ‘risks and weaknesses’ in public procurement processes

An Assembly committee has raised concern over a series of “significant risks and weaknesses” around public procurement processes in Northern Ireland.

The Public Accounts Committee (PAC) expressed concern that there is no specific strategy in place to help achieve key public procurement objectives.

Public procurement is the process by which public bodies purchase goods, services and infrastructure that are needed to enable the delivery of public services.

It is estimated that each year in Northern Ireland around 5,000 contracts are awarded by public bodies, with between £2.2 and £4 billion expenditure incurred.

Stormont departments and other public bodies – known as contracting authorities – share the management of this expenditure.

They are supported by Centres of Procurement Expertise (CoPE) which are responsible for providing technical support and guidance to ensure compliance with legislation and other regulations.

Daniel McCrossan, chairman of the Public Accounts Committee said: “It is a fundamental requirement that the goods, services and infrastructure purchased via public procurement deliver value for money for the end user.

“However, the committee found that the consequences of poor processes are reducing public sector organisations’ ability to demonstrate cost-effectiveness to the taxpayer.

“We were shocked to find there is actually no specific strategy in place to coordinate public procurement services: effectively, a key building block in the overall process of purchasing goods and services is missing.

“There has also been a failure to provide appropriate leadership and direction at a strategic level in this area.

“In Northern Ireland, the responsible body is the Procurement Board but it has failed to be sufficiently proactive in driving strategic responses to critical issues and weaknesses.”

Mr McCrossan added: “We don’t believe that the current structures are meeting the challenges faced and maximising the opportunities for efficient and effective procurement services.”

The PAC has made 11 recommendations to the Department of Finance (DoF) and has asked that officials report back on progress within agreed timeframes.

In addition to establishing a procurement strategy for the Northern Ireland Civil Service and other government public bodies, PAC has called for an urgent review of governance and oversight structures as well as the development of a communications strategy to ensure key information reaches all potential suppliers.

It has also suggested an interface between eTendersNI and the UK single portal should be put in place as a matter of urgency.

It has also recommended the Department arranges appropriate oversight of technological risks and opportunities.