19 October 2006 | Rebecca Ellinor

The CBI has outlined its view of the shortcomings in how the public sector secures value for money.

n two reports published to mark the first three months of director-general Richard Lambert's term, the CBI calls for every major government department to establish a commercial directorate and for procurement "academies" to be set up with experts departments can draw on to assist with major deals.

The first report added that all projects above a certain value should be subject to robust periodic reviews, with earlier intervention for those found to be in difficulty. It said better dialogue is needed with potential bidders earlier in the procurement process and called for detailed timetables, set out up-front with clear consequences for those who fail to stick to them.

A second report called for smarter purchasing and the creation of a new agency to ensure government uses its £150 billion-a-year purchasing budget to foster innovation through its suppliers.

It suggested a UK version of a successful US agency, Darpa, should be set up to sponsor research and work with major government procurers. It said targets must be set across the public sector, with incentives for individuals and groups to deliver better long-term value.

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