'ConsultancyOne' framework targets 20% reductions in consultancy day rates

Government wants framework to herald new era of consultancy procurement

The Cabinet Office has announced the creation of a single route for Government to buy consultancy services which it says will make it cheaper, end reliance on big business, and give more work to smaller firms.

The government hopes the first phase of the new ConsultancyOne framework developed by Government Procurement Service (GPS) will deliver 'significant reductions' in consultancy day rates by at least 20%.

The government says the new consultancy framework will replace all existing arrangements for central government departments and can also be used by organisations across the UK public sector. It says the wider choice of suppliers will provide more competitive, innovative solutions than ever before, with 47% of the successful firms not existing framework suppliers.

Under the arrangement all consultancy requirements between £100,000 and £2 million will be managed through a single buying team in GPS. Larger assignments above £2 million will be subject to full competition via the OJEU process.

The first phase of awards for ConsultancyOne are for nine lots including:

- Multi Specialism Programme Delivery Advice
- Financial Strategy
- External Audit

A second award of a further six lots will be made in March.

Cabinet office minister Francis Maude said: "We've already put an end to excessive consultancy spend by establishing stringent controls which have slashed the cost to the taxpayer by 85% and saved over £1 billion in 2011/12 compared to the level of spending in 2009/10.

"But we want to go even further in changing how Government buys in consultancy services by introducing a new single framework which saves even more money for the taxpayer and ends our reliance on larger suppliers. With SMEs making up over 27% of suppliers on this first phase of the framework, we're creating more opportunities and boosting business for smaller providers where we know greater value and innovation can be found."

David Smith, Commercial Director at Department for Work and Pensions (DWP) and Senior Responsible Officer for the consultancy framework, said:

"Departments are continuing to reduce their expenditure and dependency on consultancy and I very much welcome this single framework for Government which will offer us better value for money and greater and direct access to the innovation and expertise that SME providers can offer. I have worked very closely with GPS and experts across Whitehall to put this framework together and I'm confident that it will offer significant savings as well as further improving the quality of consultancy services to Government."

Kable Principal Analyst Chris Pennell said: "It's taken a long time but it was never going to be a straight forward procurement, not when you are trying to shoehorn the range of consultancy services included under ConsultancyOne, while including as many suppliers as possible.

"Although the winners have not been announced, it is obvious that the framework will contain a lot of small specialist firms, and it will be interesting to see who from the larger pure plays and systems integrators have won places on the lots. There could be some surprises. It is important to recognise that this is only for contracts worth between £100k and £2m. Bigger, meatier contracts will still reside with departments, and the question is how much appetite there is for big contracts given the restrictions on spend. Being on the framework is no guarantee of business."

ConsultancyONE Framework Agreement Phase I Suppliers by lot

Lot 1 Multi-specialism programme delivery

Actica Consulting Ltd
Atkins Management Consultants
Atos IT Services UK Limited
Capgemini UK plc
Capita Business Services Ltd
CMC Partnership (UK) Ltd
Concerto Consulting Ltd
Deloitte MCS Limited
Ernst & Young LLP
IPL Information Processing Limited
KPMG
Liberata UK Ltd
Methods Consulting
mott macdonald
Mouchel Ltd
PA Consulting Services Limited
PricewaterhouseCoopers LLP
Quintec Associates Limited
Quo Imus Limited
The Boston Consulting Group, Inc.

Lot 4.1 - Corporate Finance and Financial Strategy

Advalus Ltd
Baker Tilly Tax and Accounting LTD
BDO LLP
Cronin Management Consultancy
Deloitte MCS Limited
Ernst & Young LLP
Grant Thornton UK LLP
KPMG
McKinsey & Company
Moore Stephens LLP
Oliver Wyman Ltd.
Ove Arup & Partners Ltd
PKF
PricewaterhouseCoopers LLP
RBC Capital Markets
Social Finance Limited
UBS

Lot 4.2 - Investment and Banking Services

Barclays Capital (the Investment Banking Division of Barclays Plc)
BDO LLP
Credit Suisse Securities (Europe) LTD
Deloitte MCS Limited
Deutsche Bank AG, London Branch
Ernst & Young LLP
Moore Stephens LLP
PricewaterhouseCoopers LLP
Social Finance Limited
UBS

Lot 4.3 - Finance Operations Support

Atos IT Services UK Limited
Baker Tilly Tax and Accounting LTD
BDO LLP
Capita Business Services Ltd
Deloitte MCS Limited
Ernst & Young LLP
Evolve Business Consultancy Limited
Insight MSC Limited
KPMG
PA Consulting Services Limited
PricewaterhouseCoopers LLP
TurnaroundGroup LLP

Lot 4.4 - Economic Analysis

Atkins Management Consultants
Baker Tilly Tax and Accounting LTD
Deloitte MCS Limited
Ernst & Young LLP
Evolve Business Consultancy LTD
Grant Thornton UK LLP
KPMG
LA International Project Services
London Economics
The Boston Consulting Group, Inc.

Lot 5.1 - Internal Audit and Advice

Baker Tilly Tax and Accounting LTD
Capita Business Services Ltd
Deloitte MCS Limited
Ernst & Young LLP
Grant Thornton UK LLP
KPMG
Mazars LLP
Moore Stephens LLP
Parkhill
PKF

Lot 5.2 - Other Assurance and Advice

AMTEC Consulting plc
Baker Tilly Tax and Accounting LTD
BDO LLP
Deloitte MCS Limited
Ernst & Young LLP
KPMG
Moore Stephens LLP
PA Consulting Services Limited
PricewaterhouseCoopers LLP
RSM Tenon

Lot 5.3 - Financial Audit and Investigation

Baker Tilly Tax and Accounting LTD
Deloitte MCS Limited
Ernst & Young LLP
Grant Thornton UK LLP
Insight MSC Limited
KPMG
Mazars LLP
Moore Stephens LLP
Parkhill
PKF

Lot 5.4 - External Audit and Advice

Baker Tilly Tax and Accounting LTD
BDO LLP
Deloitte MCS Limited
Ernst & Young LLP
Grant Thornton UK LLP
Insight MSC Limited
Moore Stephens LLP
KPMG
PKF
PricewaterhouseCoopers LLP
RSM Tenon Audit Limited