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Written Statement - Procurement Governance and Management review

Jane Hutt, Minister for Finance

I am today announcing today that I have commissioned John McClelland CBE who undertook the ‘Maximising the Impact of Welsh Procurement Policy’ review in 2012 to undertake a short review of governance and management in public sector procurement in Wales.   I expect to receive advice on the outcome of John McClellan’s review during August 2013.

The terms of reference for the review are set out below:

The Welsh public service procurement is maturing rapidly not least in response to the strategic and operational focus accorded to it by the Public Service Leadership Group (PSLG), the Welsh Government Finance Minister’s seizing the opportunity to move the understanding of procurement from a transactional function into a fully fledged policy tool, and cross Party support for the McClelland Review Report (2012).  The establishment of a National Procurement Service (by November 2013), hosted by the Welsh Government, to deliver value for money from strategic procurement and management of common and repetitive spend across Wales exemplifies the maturing environment and the changing governance and high level management of public service procurement in Wales.  The NPS is being established with an investment of up to £5.92 million from the Welsh Government Invest-to-Save fund; the governance and performance of that investment will be critical to the success and sustainability of the NPS.

As a follow-up to the McClelland Review and to support the work of the Governance workstream of the NPS Implementation Task & Finish Project, Strategic Planning Finance & Performance Directorate General is undertaking a short term review of the governance and high level management structures and responsibilities of public service procurement across Wales and within the Welsh Government.  The review will have a particular focus on the Welsh Government’s, and Value Wales’ as a division of WG, governance, structural and management relationship with the NPS, the proposed NPS oversight Board, and the existing PSLG Procurement Board.