Two new reports released by the National Audit Office (NAO) on public services contracts have highlighted the need for increased transparency and cooperation between the private sector and public sector.

The reports from the NAO questioned competition and a lack of accountability within the current procurement system. The reports also questioned the current level of incentives and rewards that contractors are eligible to receive.

The NAO also highlighted project management, saying: “In particular, government needs to ensure that large companies with sprawling structures are not paying ‘lip-service’ to control and that they have the right culture and control environment across their group”.

Amyas Morse, head of the NAO, said: “Contracting with private sector providers is a fast-growing and important part of delivering public services. But there is a crisis of confidence at present, caused by some worrying examples of contractors not appearing to treat the public sector fairly, and of departments themselves not being on top of things.

“While some government departments have been admirably quick off the mark and transparent in investigating problems, there is a clear need to reset the ground rules for both contractors and their departmental customers.”

David Cameron urges businesses to publish open data

Are government to blame for public sector outsourcing failures?