9. MANAGEMENT CONSULTANCY SPEND
9.1.2 Will the Department list: (a) the management
consultants employed by the Department of Health, SHAs, PCTs and
acute, ambulance and mental health trusts, indicating the projects
they are employed on, their duration, cost and purpose; and (b)
the top ten daily rates paid by each category of organisation?
(Q117)
Answer
1. Information on the use of management
consultants by the Department of Health is included in table
117. The table shows all spend broken for all of the management
consultancy organisations who received payments during the period
1 April 2008 to 31 March 2009. The table shows
the breakdown of total payment individual suppliers who received
a total payment over £100,000 and a consolidated breakdown
of the remainder. The Department is not able to show a detailed
purpose or duration, these are not collected in the finance systems
of the Department from which the figures are derived. Instead,
the Department has broken the figures down into the broad category
of expenditure.
2. The Department is not able to provide
a list of the top daily rates paid to consultants. It is preferred
practice for the Department to negotiate costs for a whole piece
of work rather than agreeing individual day rates. This process
provides protection from the financial risks being exposed if
day rate based contracting were used. In these instances, although
considered when costing the work, commissions are awarded on a
total fixed cost basis which reflects the appropriate skill mix
and resource required to deliver the requirement. It is the Department's
intention to provide a list of the maximum daily rates quoted
on one of the two most frequently accessed consultancy services
frameworks by the Department from which individual local competitions
are conducted. Suppliers to the agreement have been notified of
this intention and a number have objected on the grounds of the
commercial sensitivity of the information. The Department is continuing
its consultation with the suppliers and on the basis of this and
following legal advice, it will inform the committee as soon as
a conclusion is reached.
Health Committee
3. Information on the expenditure by SHAs,
PCTs and acute, ambulance and mental health trusts is not presently
collected by the Department. In June 2009 the Health Select
Committee published its report on The use of management consultants
by the NHS and the Department of Health. As part of this paper,
the Committee asked the Department to begin to collect information
on the NHS' use of management consultancy.
4. The Government accepts the case made
by the Health Select Committee and recognises the need to understand
the overall expenditure on management consultancy by the NHS.
Currently, as part of NHS trust financial returns there is scope
for NHS organisation to report their use of management consultancy
expenditure. However, at present the level of reporting is neither
consistent nor complete across organisations. It is therefore
the Department of Health's intention to issue guidance to NHS
organisations as part of the financial reporting manual for 2009-10 to
bring consistency to this reporting. Based on this, the Department
will collate and report the overall expenditure by NHS organisations
on management consultancy each year with effect from the financial
return for 2009-10.
5. The Government is committed to demonstrating
the value achieved on all expenditure and is continuing to look
at ways to improve the transparency of all NHS expenditure, including
management consultancy. Through this work, it is the Government's
intention to continue to improve the detail provided on its use
of management consultancy.
Table 117
DEPARTMENT OF HEALTH EXPENDITURE ON MANAGEMENT
CONSULTANCY, 2008-09
|
| |
| |
| £ million
|
| | Supplier name
| Legal | Financial/
commercial
| General | Total
|
|
| | Ernst and Young
| | 12.0
| | 12.0
|
| | McKinsey and Company
| |
| 9.0 | 9.0
|
| | PA Consulting |
|
| 4.9 | 4.9
|
| | KPMG LLP |
| 4.4 |
| 4.4 |
| | PWC LLP |
| 3.7 |
| 3.7 |
| | Analysis Mason
| |
| 2.8 | 2.8
|
| | Deloitte |
| 2.7 |
| 2.7 |
| | Mouchel Parkman
| |
| 2.3 | 2.3
|
| | Mott MacDonald Ltd
| |
| 2.2 | 2.2
|
| | CapGemini UK PLC
| |
| 2.1 | 2.1
|
| | Morgan Cole |
2.0 |
| | 2.0
|
| | Parity |
| | 1.9
| 1.9 |
| | Quality Business Management Ltd
| |
| 1.2 | 1.2
|
| | Addleshaw Goddard
| 1.2 |
| | 1.2
|
| | Wragge and Co.
| 1.0 |
| | 1.0
|
| | The Forster Company
| |
| 1.0 | 1.0
|
| | Serco Consulting
| |
| 1.0 | 1.0
|
| | Irwin Mitchell Solicitors
| 0.9 |
| | 0.9
|
| | Gleeds |
| | 0.8
| 0.8 |
| | Pinsents | 0.8
| |
| 0.8 |
| | Augmentis |
|
| 0.8 | 0.8
|
| | Freshfields Bruckhaus Deringer
| 0.7 |
| | 0.7
|
| | Steria Ltd |
|
| 0.7 | 0.7
|
| | Ove Arup and Partners
| |
| 0.6 | 0.6
|
| | Parson Consulting
| |
| 0.6 | 0.6
|
| | Field Fisher Waterhouse LLP
| 0.5 |
| | 0.5
|
| | Presnow LLP |
|
| 0.5 | 0.5
|
| | White Consultants Ltd
| |
| 0.5 | 0.5
|
| | Tribal Consulting PLC
| |
| 0.4 | 0.4
|
| | Frontline Consultants Ltd
| |
| 0.4 | 0.4
|
| | Grant Thornton Ltd
| | 0.4
| | 0.4
|
| | Foxlane Associates Ltd
| |
| 0.4 | 0.4
|
| | Northgate Ltd |
|
| 0.3 | 0.3
|
| | Eversheds LLP |
0.3 |
| | 0.3
|
| | NDY Consulting Ltd
| |
| 0.3 | 0.3
|
| | Luther Pendragon Ltd
| |
| 0.3 | 0.3
|
| | IDENK Ltd |
|
| 0.3 | 0.3
|
| | Fishburn Hedges Boys Williams
| |
| 0.3 | 0.3
|
| | Atis Real Weatheralls Ltd
| |
| 0.3 | 0.3
|
| | GatenbySanderson Ltd
| |
| 0.3 | 0.3
|
| | Hay Group Management Ltd
| |
| 0.3 | 0.3
|
| | BSRIA Limited |
|
| 0.3 | 0.3
|
| | M-is PLC |
| | 0.2
| 0.2 |
| | Nomos Professionals Ltd
| 0.2 |
| | 0.2
|
| | Logica CMG Ltd
| |
| 0.2 | 0.2
|
| | QI Consulting |
|
| 0.2 | 0.2
|
| | PGO Foreign Currency Payments
| |
| 0.2 | 0.2
|
| | MRL Ltd |
| | 0.2
| 0.2 |
| | MWTB Ltd |
| | 0.2
| 0.2 |
| | ER Consulting Ltd
| |
| 0.2 | 0.2
|
| | Catch on Holdings Ltd
| |
| 0.2 | 0.2
|
| | Teleresourcing Consultancy
| |
| 0.2 | 0.2
|
| | Saxton Bampfylde Hever Ltd
| |
| 0.2 | 0.2
|
| | Property Technology Ltd
| |
| 0.2 | 0.2
|
| | Mace Ltd |
| | 0.2
| 0.2 |
| | Think Associates Ltd
| |
| 0.2 | 0.2
|
| | Opinion Leader Research Ltd
| |
| 0.2 | 0.2
|
| | Secure Healthcare Ltd
| |
| 0.2 | 0.2
|
| | Berkshire Consultancy Ltd
| |
| 0.2 | 0.2
|
| | Taai Consulting Ltd
| |
| 0.2 | 0.2
|
| | Euro RSCG Biss Lancaster
| |
| 0.2 | 0.2
|
| | Grant Riches |
|
| 0.2 | 0.2
|
| | Hedra PLC |
|
| 0.2 | 0.2
|
| | Bentley Jenison Consultants
| |
| 0.2 | 0.2
|
| | Health and Wellbeing Consulting Ltd
| |
| 0.2 | 0.2
|
| | DCT Health Consulting
| |
| 0.2 | 0.2
|
| | Teamwork Management Services
| |
| 0.1 | 0.1
|
| | Norton Rose |
0.1 |
| | 0.1
|
| | Warwick 3P Ltd
| |
| 0.1 | 0.1
|
| | Frontier Economics
| |
| 0.1 | 0.1
|
| | LA International Computer Consultants Ltd
| |
| 0.1 | 0.1
|
| | The NESCO Group
| |
| 0.1 | 0.1
|
| | Paymaster Ltd |
|
| 0.1 | 0.1
|
| | The work Foundation
| |
| 0.1 | 0.1
|
| | Design Health |
|
| 0.1 | 0.1
|
| | Emperor Consulting Ltd
| |
| 0.1 | 0.1
|
| | OPM Ltd |
| | 0.1
| 0.1 |
| | Oxford Strategic Marketing
| |
| 0.1 | 0.1
|
| | Millbank Tweed Hadley and McCloy
| 0.1 |
| | 0.1
|
| | Capita Symonds
| |
| 0.1 | 0.1
|
| | Rose Barton Nicholas
| |
| 0.1 | 0.1
|
| | Hempsons Solicitors
| 0.1 |
| | 0.1
|
| | Collinson Grant Healthcare
| |
| 0.1 | 0.1
|
| | Movianto UK Ltd
| |
| 0.1 | 0.1
|
| | Training for Lifestyle change
| |
| 0.1 | 0.1
|
| | IT Contracts Management Ltd
| |
| 0.1 | 0.1
|
| | Contin you solutions Ltd
| |
| 0.1 | 0.1
|
| | Europe Economics
| |
| 0.1 | 0.1
|
| | Green River Consultancy Ltd
| |
| 0.1 | 0.1
|
| | Navigant Consulting Europe Ltd
| |
| 0.1 | 0.1
|
| | Bell Pottinger Group Ltd
| |
| 0.1 | 0.1
|
| | Inventures Ltd
| |
| 0.1 | 0.1
|
| | Other (all individual consultancy firm spend under £0.1m)
| |
| 27.3 | 27.3
|
| Connecting for Health | QI Consulting
| |
| 7.1 | 7.1
|
| Connecting for Health | PA Consulting services Ltd
| |
| 2.6 | 2.6
|
| Connecting for Health | Gartner UK Ltd
| |
| 1.7 | 1.7
|
| Connecting for Health | Tribal Consulting Ltd
| |
| 1.6 | 1.6
|
| Connecting for Health | Methodes Consulting Ltd
| |
| 1.3 | 1.3
|
| Connecting for Health | Cap Gemini
| |
| 1.1 | 1.1
|
| Connecting for Health | Atos Consulting Ltd
| |
| 0.9 | 0.9
|
| Connecting for Health | Hedra plc
| |
| 0.4 | 0.4
|
| Connecting for Health | Amtec Consulting plc
| |
| 0.3 | 0.3
|
| Connecting for Health | Bytes Technology Group
| |
| 0.2 | 0.2
|
| Connecting for Health | Qinetic Consulting
| |
| 0.2 | 0.2
|
| Connecting for Health | Deloitte MCS Ltd
| | 0.2
| | 0.2
|
| Connecting for Health | Ernst & Young LLP
| | 0.2
| | 0.2
|
| Connecting for Health | Qinetiq Ltd
| |
| 0.1 | 0.1
|
| Connecting for Health | GS1 |
|
| 0.1 | 0.1
|
| Connecting for Health | Bearingpoint Ltd
| |
| 0.1 | 0.1
|
| Connecting for Health | Other (all individual consultancy firm spend under £0.1m)
| |
| 1.1 | 1.1
|
| NHS PASA | Avail Consulting |
|
| 1.3 | 1.3
|
| NHS PASA | Design Council |
|
| 0.8 | 0.8
|
| NHS PASA | Tribal Consulting |
|
| 0.1 | 0.1
|
| NHS PASA | Other (all individual consultancy firm spend under £0.1m)
| |
| 1.8 | 1.8
|
| Total |
| 7.9 | 23.6
| 93.8 | 125.3
|
|
| Source: |
| Procurement Centre of Expertise, DH (PICD reconciliation of DH general ledger).
|
| 
