Transforming contract management : twenty-third report of session 2014-15, report, together with the formal minutes relating to the report

The private sector delivers complex services on behalf of the public sector, to the value of around GBP90 billion, which represents half of public sector expenditure on goods and services.

The public needs to have confidence that contracts are managed well by both government departments and the contractors themselves.

The case of G4S and Serco overcharging the Ministry of Justice for years on electronic tagging contracts was the starkest illustration of both contractors' failure to work in the public interest and government failure to safeguard taxpayers' money.

The electronic tagging case has served as a belated wake up call and, led by the Cabinet Office, the Government is now working to improve the way it manages its suppliers and contracted-out providers of public services.

This report sets out four key areas for attention: contractors have not shown an appropriate duty of care in the use of public funds; quasi-monopoly suppliers squeeze out competition, often from smaller companies with specific experience; the way government contracts gives too much advantage to the contractors.