Further supplementary memorandum submitted
by the Office of Government Commerce
The following details information on the total
value for money gains reported by departments, agencies and NDPBs
in financial year 2000-01, and a breakdown.
The table below shows the total gains reported
to us for the 2000-01 financial year. In providing these figures,
we should like to make clear some points on the data:
This was the first year in which
we have run this exercise. There is therefore a learning element
for all concerned, and consequently some caveats over both the
coverage and the quality of returns.
Figures for a single year can only
represent a snapshot of a department's procurement activity. For
example, some departments have long running contracts where it
is only possible to influence value for money in the year in which
they are let or renewed. As such, a single year's gains do not
necessarily represent performance over a longer period.
Some of the departments with leaner
and more advanced procurement processes factored efficiency improvements
into their baseline figures for 2000-01, and so had less opportunity
to make additional gains.
The figure in the table for DTLR is lower than
that reported by the department at the hearing held on 23 January.
This is because we have excluded estimated gains of some £100
million which we consider should be scored against later years
rather than 2000-01. DTLR have agreed this treatment.
We shall publish the total gains figure in the
Treasury's Departmental Report.
VALUE FOR MONEY GAINS REPORTED FOR FINANCIAL
|Department ||Gains (£'m)
|Department for Education and Employment
|Department for the Environment, Transport and the Regions
|Department of Social Security||66.7
|Lord Chancellor's Department||15.1
|Other departments, agencies and NDPBs||77.9
|Total Gains Reported||433.2
(i) The figures for the departments listed above include gains
reported for their agencies and NDPBs.
(ii) The department names and responsibilities are those for