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Are ever larger contracts really the answer?

The recent scandal exposed by the National Audit Office (NAO) of the recently tendered Ministry of Justice language translation service being inadequately monitored and overseen is just the latest of a very long list of large regional and national contracts that have provided poor or deficient services and where the department or authority involved has proven unable to supervise or monitor effectively.

The NAO declared that it had found private contractor Capita/ALS met less than 60% of the translator bookings against an agreed target of 98% and that on many occasions the translators were not able to translate to the standard required.  It further stated that the Ministry of Justice had not deployed the sanctions that it had available for around six months.

When you consider the seriousness of the situations in which these people need translations services you readily see what the consequences of receiving a poor service can mean to people.

This report is pretty typical of any close analysis of such large contracts.  The companies that win them have invested a huge amount in the tender process (often several million) and they trim their costs in order to win the contract.  They rely on the fact that the government department or local authority will not be able to oversee them very strictly and they employ extremely skilled contracts managers to fend them off if they do.  Moreover, they engineer the final contract with a series of exit clauses and mitigations that make defaults very hard to pin down and successfully impose.

It’s an effective strategy that means the corporate body rarely loses out and the government fails to get the services that it hoped for.  But worst of all the people for whom the service was designed get a raw deal and have no practical form of redress.  They cannot see the contract (its commercial in confidence) they have few routes to complain and the firm employs the same stonewalling strategies that is does with the commissioning department.

The result is opaque, wasteful and inefficient.

I argue that we must bring these services closer to the people they are supposed to serve.  I believe that they should be delivered locally and by local businesses and organisations that are much more accountable to the local people whom they serve.  This would be achieved partly by simply being local and therefore being accessible but of course I would want to see much greater transparency about the terms on which they are contracted and what the avenues for redress are.  We could see a local translation service based in every town and city.  They could use the services of local people; after all we have as a country attracted a wide range of immigrants from almost every corner of the globe. Such a service could really engage with its diverse population and thereby engage them with some of the issues that affect the locality whether they are in health, police or general council services.

But of course, I’m told that local contracting is too expensive and anyway it’s against EU guidance.  For the first I point to the thoughts of John Ruskin who said, ‘What is the cheapest to you now is likely to be the dearest to you in the end.’  On the second point it seems to me that’s a very simplistic understanding of EU tendering.  I don’t think they meant that at all when they set the rules.  It doesn’t seem to be interpreted like that elsewhere in the EU. I don’t think the Italian school system would import food when they could use locally grown produce.  How do they do it? Apparently, they simply state that they want fresh food and then define fresh as being no more than 4 hours from picking to plate. Quite reasonable conditions in fact.

A simple example maybe, but one that is no doubt replicated for much more complex services.  We should look at how the other public authorities in the EU do it – I’m sure they would share their bid documents as one of the beauties of public service is that they’re not constrained by privacy or by trying to gain commercial advantage all the time.

And of course, if you are struggling to translate these European procurement documents then you could always turn to your pool of local translators!

  • Colin Crooks’ book How to Make a Million Jobs: A Charter for Social Enterprise is reviewed here
Colin Crooks
Colin Crooks is a serial social entrepreneur. Using crowd funding, Colin’s book - working title ‘One Million Jobs’ - will be printed in time for the party conference season. For more information and to make a donation click here.
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