More corrupt cronyism

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RegencyCheltenhamSpa
Posts: 29756
Joined: 21 Nov 2009, 03:27
DWP give a contract to G4S.

http://www.fm-world.co.uk/news/g4s-secu ... dwp-sites/" onclick="window.open(this.href);return false;

You would have thought that in a country which is supposed to a free-market working for the general public that the company with one of worst records for failing to deliver government contracts and in fact being investigated for criminal behaviour by staff would not be eligible to bid for government contracts, and that tax payers money would be spent on better performing companies.

But not under our self-serving, pro-spiv, anti-enterprise crony pleasing regime!

What next? Let a monopoly train operator on the East Coast end their contract three years early - so avoiding them paying £2bn out of their £3.3bn contract but then invite them to bid again in a PFI deal! Surely our pro-monopoly crony pleasing government wouldn't dream of transferring so much money from taxpayers to company coffers when it was the company which failed! Surely they will be pro-enterprise and encourage innovative market entrants, or if the monopoly has caused unresolvable market failure they will bring it under public ownership. Erm...
ctfc-fan
Posts: 1880
Joined: 06 Jan 2010, 12:00
Thing is, are there any real competitors that could try and handle the bid?
RegencyCheltenhamSpa
Posts: 29756
Joined: 21 Nov 2009, 03:27
ctfc-fan wrote:Thing is, are there any real competitors that could try and handle the bid?
Well if there is no competition possible does that not suggest a policy of privatisation to encourage competition is flawed for that particular market? I am all in favour of privatisation of public services and profit making where possible, but I am not ideologically obsessed with privatisation for the sake of it where no competition can exist as that leads to rent seeking inefficiency. If the government were more pragmatic and less one-eyed when it comes to fundamental infrastructure which underpins our economy they would more likely have my support.
confused.com
Posts: 2666
Joined: 04 Oct 2012, 07:16
No fan of G4S, but it could simply mean that no other similar company, is in the position to meet the criteria of scale and cost of this particular project? Have no idea who else put in a tender for the contract – presuming you do, hence your attack. Or, what pricing was put forward in the various tenders – presume you do hence your attack. Or, the rationale behind awarding the contract to G4S – presume you do hence your attack. Like most things in life, I am sure there is an audit trail etc. and checks / balances in place.
RegencyCheltenhamSpa
Posts: 29756
Joined: 21 Nov 2009, 03:27
confused.com wrote:No fan of G4S, but it could simply mean that no other similar company, is in the position to meet the criteria of scale and cost of this particular project? Have no idea who else put in a tender for the contract – presuming you do, hence your attack. Or, what pricing was put forward in the various tenders – presume you do hence your attack. Or, the rationale behind awarding the contract to G4S – presume you do hence your attack. Like most things in life, I am sure there is an audit trail etc. and checks / balances in place.
Government ITTs tend to be 30-40% price. So G4S generally always bid low, which is why they end up failing or employing cheapest labour possible who aren't up to the job.

Again, if no company is prepared to bid for the budget available, why insist on outsourcing it? Driven by ideology rather than economic rationale. OR up the budgets for these things to attract better bidders and competition to drive innovation and efficiency which is what privatisation is supposed to do. Either do it right or don't do it. Otherwise it just ends up with bad public service, bad outcomes and bad vfm.
confused.com
Posts: 2666
Joined: 04 Oct 2012, 07:16
RegencyCheltenhamSpa wrote:
confused.com wrote:No fan of G4S, but it could simply mean that no other similar company, is in the position to meet the criteria of scale and cost of this particular project? Have no idea who else put in a tender for the contract – presuming you do, hence your attack. Or, what pricing was put forward in the various tenders – presume you do hence your attack. Or, the rationale behind awarding the contract to G4S – presume you do hence your attack. Like most things in life, I am sure there is an audit trail etc. and checks / balances in place.
Government ITTs tend to be 30-40% price. So G4S generally always bid low, which is why they end up failing or employing cheapest labour possible who aren't up to the job.

Again, if no company is prepared to bid for the budget available, why insist on outsourcing it? Driven by ideology rather than economic rationale. OR up the budgets for these things to attract better bidders and competition to drive innovation and efficiency which is what privatisation is supposed to do. Either do it right or don't do it. Otherwise it just ends up with bad public service, bad outcomes and bad vfm.
I repeat, I have no idea who else put in a tender, no idea what they quoted, no idea what G4S quoted, no idea of the rationale behind the selection of G4S.
If you know any of these facts, then I can understand your ire and maybe you can shre with us ?
RegencyCheltenhamSpa
Posts: 29756
Joined: 21 Nov 2009, 03:27
My ire is that if my company failed on a contract for a client, had a contract taken off us by the same client, and one more than one other project for the client faced criminal investigation we would not get anymore contracts with that client! No matter who else bid!
confused.com
Posts: 2666
Joined: 04 Oct 2012, 07:16
I refer you to my previous answer
RegencyCheltenhamSpa
Posts: 29756
Joined: 21 Nov 2009, 03:27
confused.com wrote:I refer you to my previous answer
So you're satisfied a company with a demonstrable record of failure keeps winning contracts from the client they keep failing for?
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