Cabinet Office Chief Information Officer

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Supply Management

A large proportion of Government ICT is outsourced to the private sector. While this increases our pool of resources and improves efficiency, Government has not always managed relationships with suppliers effectively. The supply management workstream builds on the work already undertaken by the CIO Council, OGC and private sector partners to deliver a step-change in the efficiency and effectiveness of outsourced Government ICT. This will incorporate delivery of the ICT Procurement strategy for Government, which will provide the procurement vehicles that enable implementation of this ICT strategy.

Key Achievements

The Supply Management Initiative (SMI) was launched in 2006, to enable Government  to become a world class purchaser of ICT, driving up performance, value and capability. SMI is made up of 2 strands:

• Performance Improvement via a two-way common assessment framework designed to address shortfalls in delivery and deliver cash savings.  Since 2006, suppliers’ average performance has improved by 11.3%.
• Value and Capability Improvement through a number of tools to improve programme and project delivery which have been developed by joint Industry/Government working groups including a standard Pre-procurement Qualification Questionnaire (PQQ), Procurement Qualification Toolkit (PQT), ICT services model contract and the Joint Statement of Intent (JSI).

What’s next?

• The Office of Government Commerce (OGC), Cabinet Office, CIO Council and Industry are developing a revised Supply Management work programme to address the joint challenges of tightening economic circumstances alongside increasing requirements for better commercial outcomes and delivery.
• The ICT Collaborative Procurement Strategy will set out a single set of arrangements for procurement, which will allow reuse across the public sector. This will enable savings of £1.6 billion by 2013/14.

Supply Management (ICT Strategy) [PDF]

Contact
For further information email supply.management@cabinet-office.x.gsi.gov.uk.