Background
The government plans to procure innovative solutions and technologies to help improve service delivery, efficiency, and to support the growth of innovative companies. However, taking new approaches often introduces risks, including uncertain outcomes and the potential for failure. These risks can discourage central government departments from pursuing innovative approaches, despite the potential long-term benefits for both taxpayers and service users.
Scope
The NAO is looking at how government departments are approaching the procurement of innovative solutions and technologies. We will explore good practice where available and demonstrate how we will audit the procurement of innovative solutions.
We will explore how departments balance risks and opportunities, and whether current practices enable a proportionate and effective approach to risk management, including the use of pilots, trials and portfolio approaches to innovation.
In particular, the NAO will identify:
- how departments define and apply their risk appetite when adopting innovative solutions;
- whether procurement and commercial practices enable access to a diverse supplier base, including SMEs and non-traditional providers;
- whether innovation is considered early in service design and delivery strategies, rather than only at the point of procurement;
- the extent to which lessons are learned from both successful and unsuccessful innovative procurements; and
- how value for money is assessed when outcomes are uncertain and benefits may be realised over the longer term.
NAO team
Director: Simon Reason
Senior Audit Manager: Lilian Ndianefo