Scottish Government Faces Scrutiny Over £300 Million Outsourcing Contracts
Critics question multi-million-pound deals with private firms for work that could be handled by civil servants.
The Scottish Government is under pressure to justify nearly £300 million spent on outsourcing work that critics argue could be managed by its own civil service staff. The scrutiny follows a recent £2.7 million contract awarded to APS Group, a Manchester-based firm, for the provision of schoolbags for Primary One pupils, a contract that was not put out to tender.
Documents reveal that APS Group has secured a total of £294 million in public contracts from the Scottish Government since 2014. These contracts encompass a range of services, including the supply of office furniture, printing, and the prominent Baby Box scheme. The Baby Box initiative alone has accounted for nearly a third of the firm's earnings from the government, with approximately £100 million allocated to the program thus far.
This extensive outsourcing has raised questions, particularly as the Scottish Government operates its own procurement department, which reportedly employs around 1,300 staff.
Details of the Contracts
APS Group's role in the schoolbag initiative involves sourcing the bags from a Chinese factory, procuring various items to fill them from domestic and international suppliers, and then assembling and delivering the completed bags across Scotland. This mirrors the operational model used for the Baby Box scheme.
Since 2017, APS Group has managed the Baby Box scheme, initially receiving £100,000 for a pilot program. This was followed by a £35 million contract for its nationwide management over five years, and a subsequent renewal in 2022 for £56 million over another five-year term. The firm is responsible for sourcing all contents and managing the distribution of these boxes to new parents.
Additionally, APS Group has received almost £200 million for printing services, including documents and booklets, such as the white paper on independence.
Political Response
Scottish Conservative education spokeswoman Meghan Gallacher MSP has voiced concerns about the awarding of these lucrative contracts to a private firm. She questioned why the government's large civil service workforce was not utilized for such projects.
'The SNP have an army of civil servants who could be doing this work in-house, yet they are typically happy to let taxpayers foot the bill,' Gallacher stated. She called for an explanation from John Swinney, the relevant minister, regarding the awarding of these contracts and a demonstration that taxpayers are receiving value for money.
A spokesperson for the Scottish Government defended the procurement process for the schoolbags, stating that engaging a trusted supplier already involved with the Baby Box scheme was the most efficient and cost-effective approach to ensure timely delivery for the next school year. The spokesperson also noted that the bags would be assembled in Scotland by APS Group to maximize value, while acknowledging that some items would be sourced from both the UK and overseas. However, the government could not provide specific reasons why civil servants were deemed unable to manage the schoolbag project internally.
