Select Committee on Treasury Minutes of Evidence

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.



Gains ('m)

Department for Education and Employment


Department for the Environment, Transport and the Regions


Home Office


Department of Social Security


Inland Revenue


Lord Chancellor's Department


Other departments, agencies and NDPBs


Total Gains Reported



(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 2000-01.




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