CBI warning on stop-start procurement projects

The CBI said PCTs often appeared unaware that when they halted tender processes at prequalification questionnaire stage, bidders would factor the cost of the wasted work into their second bid, inflating their final offer.

Restarting procurements would also exclude smaller providers unable to cover the cost of starting work again, the business lobbying group said.

A CBI spokesman said PCTs were typical of the "clear lack of skills and strategic thought process" in many public sector procurements.

"The result is that these delays end up being priced into the contract. That's bad for the taxpayer," he said. "The reality is it diminishes competition because it means only companies with the resources to stay the course compete in the first place. What is missing often is an understanding of that at the highest level."

The comments came as two PCTs restarted a joint procurement for two GP-led health centres under the equitable access to primary medical care scheme. Bidders had already submitted prequalification questionnaires. The PCTs admitted there had been a "lack of clarity" about the procurement on their websites.

In a letter to suppliers, East Sussex Downs and Weald PCT and Hastings and Rother PCT said that following questions raised at a bidder event, they had decided to call a halt and re-advertise the project.

A spokesman for the PCTs said: "This will only add around four weeks to our original timetable for the project and will keep us within the timescales laid down by the Department of Health.

"The PCTs are committed to a fair and transparent tendering process, and ensuring that all potential bidders are treated equally and are fully aware of the requirements for the service."

He said organisations that had filled in questionnaires would probably find there was little additional work required.

Last month, independent providers accused PCTs of "doing the bare minimum" on procurement as a PCT axed its scheme at prequalification questionnaire stage.

But NHS director general for commissioning and system management Mark Britnell said monthly updates from PCTs and strategic health authorities suggested "great progress" in the procurements.

"SHAs as system managers have held PCTs to account for quality of procurement and have methods in place to track milestones against the procurement timetable," he said.

He added that the DH "had not been made aware" through any of its formal and informal independent and third sector advisory groups that there had been problems with local procurement.

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