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Better Quality Services

a handbook on creating public/private partnerships through market testing and contracting out

 

FOREWORD

by the Chancellor of the Duchy of Lancaster and Cabinet Minister for Public Service

The Government is re-inventing Britain. We want all Government services to be of the very highest quality, efficient, responsive and customer-focused.

We are working with the private sector through competition to achieve this. What matters to the citizen, and therefore to the Government, is quality for the customer at the most reasonable cost to the taxpayer. If these are right, the distinctions between public and private are not so important. We want to encourage business to play a fuller role in providing public services. That is why we stress Public Private Partnerships.

The key is the energy, commitment and skill of people. Nurturing commitment, consulting staff and their representatives, training people and supporting them through change is what is expected of senior managers in Departments – and of our private sector partners.

We also stress partnership with staff and their recognised trade unions – or other independent representatives. The challenge for all of us is to remove the fear of change, so that together we can ensure better quality services for the customers and users of Government services at optimal cost to the taxpayer. Following this handbook will help in doing all this, so that, together, we fulfil our obligations to customers, taxpayers and citizens as a whole.

CONTENTS

Foreword by the Chancellor of the Duchy of Lancaster

Introduction

12 Guiding Principles in Using Market Testing and Contracting Out

1. Overview

Government policy

Reviewing services and activities

Key steps

Key messages

Sources of further information

2. How to Succeed

Managing change

Success in achieving objectives

Improving quality

Minimising process costs

Organisation

Key messages

Sources of further information

3. Managing Staff

Developing an effective human resource strategy

Transfer of Undertakings (Protection of Employment) Regulations – TUPE

Anticipating retendering

Releasing information about staff

Keeping staff informed about TUPE

Trade union consultation

Health & safety

Key messages

Sources of further information

4. Preparing the ground – scoping and assessing feasibility

The scope for competition

Nature of the relationship

Assessing feasibility

Key messages

Sources of further information

5. Inviting bids

Bidders

Advertising impending competitions

Pre-qualification

Invitation to tender

Handling incoming bids

Key messages

Sources of further information

6. Responding to invitations to tender

Dealing with the requirements

Preparing in-house bids

Key messages

Sources of further information

7. Evaluating bids

Evaluation

Criteria

Making decisions

Publicising results

Debriefing and feedback

Key messages

Sources of further information

8. Contracts

Contracts and SLAs

Award procedures

Contents of contracts and SLAs

National Audit Office

Access for internal auditors

Contract management

Key messages

Sources of further information

9. Retendering

Basic principles

Evaluating the efficiency exercise and the contract

Reviewing service requirements

Appraising options

After the evaluation, the service review and the option appraisal

Key messages

Sources of further information

Glossary

Better Quality Services

 

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