Devolved Procurement Definition
The term “devolved procurement” generally refers to the process by which central government departments purchase goods or services on behalf of other government bodies or organizations. In the UK, devolved procurement is overseen by the Department for Business, Energy and Industrial Strategy (BEIS).
The rationale behind devolved procurement is that it allows central government to use its buying power to secure better deals for goods and services that are then used by a wide range of other public bodies. This can result in significant cost savings for the taxpayer.
There are some key benefits to devolved procurement, including:
– improved value for money through economies of scale;
– reduced transaction costs;
– greater certainty over supply;
– improved quality assurance.
There are also some potential drawbacks to devolved procurement, which include:
– duplication of effort – if different parts of the public sector are procuring the same thing, this could lead to wasted time and resources;
– lack of transparency – if central government is doing the procuring on behalf of others, it may be difficult for those who are ultimately using the goods or services to hold them accountable;
– risk of corruption – there is a risk that unscrupulous suppliers could try to influence decision makers in order to win contracts.
