Revealed: Government faces mounting pile of complaints over contract issues
Whitehall is facing a spiralling number of complaints from companies bidding for government work, as officials move to counter growing disquiet over a series of botched contract awards in recent years.
The number of complaints rose by nearly half in 2018 to 235, up from 159 the previous year, according to data released under the Freedom of Information act.
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No figures have been recorded for 2019, but the scrutiny appears to have continued after government departments came under fire for a number of high-profile slip-ups including a no-deal Brexit ferry contract which went to a firm which had no ships.
That was resolved last month, but not before ferry operators P&O and Eurotunnel sued the government over the decision.
The Department for Transport (DfT) was forced to pay Eurotunnel £33m in a settlement after its decision to award Seaborne Freight a £13.8m deal. With the cost of cancelling the contracts coming to £51.4m, and on top of the Eurotunnel settlement, taxpayers footed a bill of £85m, according to a Public Accounts Committee report.
Meanwhile, rail operator Stagecoach also sued the DfT earlier this year, after it was barred from bidding for three rail franchises.
A Cabinet Office spokesperson said: “The vast majority of procurements that take place are carried out in compliance with public contract regulations – only a small fraction result in a legal challenge in the courts.”
Nevertheless, on average, nine out of every 10 working days last year involved a complaint landing on a civil servant’s desk for how a contract was awarded, according to the figures.
Firms fight ‘tooth and nail’ for public work
James Geary, principal at law firm EMW, said companies were fighting “tooth and nail” to win work as public sector contracts became more sought after. This is thought to be in part down to restrained government spending, with public sector expenditure as a percentage of GDP falling to 34.1 per cent in 2018/19, compared to 37.3 per cent five years before in 2013/14.
Companies are also thought to be lodging more complaints in an effort to get an advantage over competitors, with the process sometimes yielding information about rival bids that would otherwise be kept under wraps.
Geary said: “Reduced opportunities in the private sector and the weak economy mean that securing a Government contract is increasingly competitive. Businesses have reacted by contesting public contracts far more regularly, in the hope that these contests result in a review or even a complete retender of the procurement process.”
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“Lodging a complaint can also be an extremely useful fact-finding mission for a supplier. Not only can a complaint result in a retendering, they can also help businesses obtain crucial information that can dramatically improve their future bids.”
“Recent controversies have put the spotlight on how the Government hands out its contracts, with many businesses now questioning how the procurement process is run.”
(Main image: Getty)