Greening requires DFID suppliers to prove value for money

18 Jan 13
Outside contractors working with the UK Department for International Development will be expected to show they are continually providing value for money under a code of conduct published today.

By Nick Mann | 18 January 2013

Outside contractors working with the UK Department for International Development will be expected to show they are continually providing value for money under a code of conduct published today.

The Statement of priorities and expectations for suppliers requires contractors to set out in writing how they are ‘actively seeking to demonstrate and maximise results, and reduce costs through the life of the contract’.

Contractors must also show they are pursuing ‘continuous improvement’ in reducing waste and improving efficiency and that they are earning ‘fair but not excessive’ rewards for their work.

The code of conduct is the latest initiative by International Development Secretary Justine Greening aimed at tightening controls over how the department spends its ring-fenced budget.  These include requiring organisations receiving and managing UK aid to meet globally recognised transparency and accountability standards. The department is also winding down its development aid spending in India

In a statement issued today, Greening said: ‘This Statement of priorities and expectations challenges suppliers to demonstrate that they are continually striving to improve the value for money they offer to DFID.’

A spokeswoman for the department added: ‘The message to suppliers is loud and clear: you can only expect to work with us if you can prove you offer the best service at the right price.’

Among the other requirements suppliers must meet are to apply a ‘zero tolerance’ approach to corruption and fraud by using ‘top quality’ risk management.

Suppliers’ activities should also be more transparent. They should adopt an ‘open book’ approach and publish information to show how and where DFID funding is being used and the results achieved.

They should also expect to be held to account for the services they provide and to accept responsibility when things go wrong so lessons can be learnt, the statement added.

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