A Domesday Book for public service contracts – better data, better value for money

The solution is self-evident. It is what we call a Domesday Book: the central collection of data on outsourcing. A repository or registry could collect and disseminate knowledge, compiling and updating regularly. Into it would go:

+ all new contracts above the EU value threshold, to be notified after a start date

+ then, over a two-year period, details of all existing outsourcing contracts

+ all PFI contracts (which often involve services and outsourcing contractors)

+ contracts with voluntary and community groups, charities and social enterprises.

To secure this data, a new duty of contract reporting could be laid on public bodies in England. Welsh, Scottish and Northern Irish governments would be invited to join in and share data with the registry, and would in turn benefit from access and analysis. This new duty would consolidate work that is going on. A reciprocal duty of reporting would be laid on contractors – doing work above the value threshold. The duty could take the form of a contract clause, requiring the company to lodge a copy of the agreement with the central registry.

A central registry

The database would eventually list:

• the names of suppliers of services above the OJEU threshold. The database would feature the names of the contractor, its ownership details, its major shareholders if a quoted company, and the names of partners if a consortium. These details would be cross-tabulated with contracts above the threshold, the identity of principal sub-contractors and the contract terms.

Corporate data would include:

• the value and percentage of corporate turnover formed by public sector contracts
• the gender pay gap, trade union recognition, the location of corporate headquarters, the geographical distribution of staff and proportion of turnover in the UK and contractors’ staff diversity
• company tax policy, Fair Tax Mark qualification and the estimates of UK tax paid
• remuneration policies and practice.

The database would archive and analyse:

• copies of the contract and any significant renegotiated terms; the length, service specification, value and annual contractual payments, and the contract default and cancellation terms.

It would establish:

• a means of identifying suppliers, for example by their company or charity numbers.[1]

Through discussion with councils, trusts and departments, the registry would be able to assemble and appraise:

• key objectives set by them in letting a contract.

The registry could compare and contrast contracts, examining contractors and processes and promoting discussion. It might consider establishing a What Works centre on outsourcing as part of the existing network of What Works centres under the Cabinet Office. Its staff would include specialists and people with cross-sector experience who knew the tricks of the trade. Its database would include not only contracts but also material on people’s attitudes towards services and on how they are delivered.

The registry would establish lines of communication to audit, risk, scrutiny and oversight committees to deliver updates on contracting trends and alerts about contractors, ensuring that its material was in an accessible and intelligible format to citizens at large. The government could use its leverage over the big management consultancies to try to unlock the knowledge about contractors and contracting they have hidden away.

Under new protocols:

+ public bodies and contractors would ensure data was kept up to date

+ data should be verifiable and open to the maximum degree, with commercial confidentiality tightly defined and exceptional

+ every body would be expected to have a named lead official responsible for the database and for enquiries from other public bodies

+ Domesday Book data should be accessible via an internet portal, after agreements on access, security, applicability and Freedom of Information

+ data would be subject to external audit on a managed basis.

Over time further knowledge might be sought about the governance and employment standards of contracting companies across their entire business. The registry would analyse trends and markets, presenting data by sector and region to compile an accurate figure for the value of outsourcing. The aim is also practical, usable knowledge. For example, in a Whitehall department registry data would be available to ministers and permanent secretaries as a central part of the evidence on which policy and delivery should be based. This data should be monitored by parliamentary select committees and reported in annual and accountability statements. Similarly, in local government councillors and executives should seek assurance that evidence and data from the Domesday Book are used in policy and operational recommendations. Audit and scrutiny committees should check they do so.