Public Sector Spending on Consultants Soars

CCS’s £5.7 billion Management Consultancy Framework Four (MCF4) continues the third-party consultancy service offered to the Public Sector in the form of three former Management Consultancy Frameworks. 

Find out more about the success of the previous iterations of this Framework and the statistics behind government spend on consultancy services that demonstrate the immense benefits your business could realise being on this Framework. 

The Covid-19 Effect

The demand and longevity of the relationship between consultants and government is not in doubt, as there will always be a demand for cost-effective and subject matter experts to be able to guide them on current topics, enabling them to make informed decisions. Given the current climate and recession, this is particularly important to help with workloads and budgets. The evolution of this Framework showcases the government’s commitment to finding efficient and consistent ways of procuring consultancy services. 

During the pandemic alone, government spending on consultancy services was £56 million. The UK government recently scrapped limits on spending controls for external consultants. Previously, contracts exceeding £20,000 or lasting more than nine months required central authorization. Now, these limits have been cancelled, allowing departments to potentially spend millions more on consultancy services. 

Accessibility for SMEs

On MCF3, 878 call-off contracts were awarded across the 182 suppliers. In total, this averages 4.82 call-off contracts per supplier. This already demonstrates a great return-on-investment figure, and with GovData’s expertise you are more likely to produce a significant return on investment. 

CCS published its first SME action plan in 2022, outlining how it will achieve the Public Sector goal of a third of government spending going to SMEs. 

In the previous iteration of this Framework, 69 of the 128 suppliers were SMEs – a total of 54%, therefore exceeding the goals set out in the action plan. This demonstrates CCS’s commitment to compliance and supporting smaller businesses. Therefore, there is a significant opportunity for smaller and niche consultancy providers to benefit from this Framework, opening doors for growth and collaboration.

The Opportunity

This substantial spending on consultancy services by government departments indicates a significant market size your business could take advantage of. In 2022, the UK Public Sector awarded £2.8 billion worth of consulting contracts, marking a 75% increase compared to 2019. 

The structure of MCF4 has changed to encompass industry-specific lots that align with Government goals, such as a Lot for Environmental Sustainability & Socio-Economic Development. 

  • Lot 1 – Business 

  • Lot 2 – Strategy & Policy 

  • Lot 3 – Complex & Transformation 

  • Lot 4 – Finance 

  • Lot 5 – HR 

  • Lot 6 – Procurement and Supply Chain 

  • Lot 7 – Health, Social Care and Community 

  • Lot 8 – Infrastructure Including Transport 

  • Lot 9 – Environmental Sustainability & Socio-Economic Development 

  • Lot 10 – Restructuring and Insolvency 

The ideal Supplier profile fits several company types, such as: 

  •  • Business management advice 
  •  • Quality Assurance providers 
  •  • Communications strategists 
  •  • Asset management 
  •  • HR 
  •  • Social care providers 
  •  • Auditing 
  •  • Accountancy 
  •  • Environmental assessment 
  •  • Risk management 

If you believe your business fits the ideal supplier profile for MCF4, get in touch with us today for a free consultation with one of our experts. Being successful on MCF4 allows you to become an appointed government Supplier until 2029. Regulations now mean that your business must be on a Framework in order to continue working with Public Sector organisations, and the team at GovData are experts in making this process simple. As well as MCF4, there are various opportunities available in the Information Technology and Building & Infrastructure Pillars.

Therefore, ensure your business doesn’t get locked out for four years. Get in touch with us today on 01925 269600 or [email protected]. 

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