Outsourcing policy to reduce operating expenses

13/03/2011

Government has decided to outsource the implementation of identified projects and delivery of selected services to private and non-state actors.

Permanent Secretary for the Public Service, Mr Parmesh Chand said the ‘Outsourcing Policy,’ is in line with the current reforms being pursued by Government to bring about cost reduction and efficiency in the delivery of public goods and services.

He said the policy is intended to help contain the size of the civil service and its operating costs; improve efficiencies in service delivery in terms of timing and responsiveness; enable greater employee participation and private sector led growth; and to provide efficient and value for money services to the tax payer.

The areas considered for outsourcing have been divided into two categories namely infrastructural/works contracts and service contracts.

Mr Chand said a Central Coordinating and Administrative Committee on Outsourcing (CCACO) has been formed to oversee the formulation, execution, implementation and monitoring  aspects of the policy, adding there will be a thorough cost -benefit analysis done before any project is outsourced.

Properly vetted contracts from the Office of the Solicitor General will be prepared and entered into for any outsourced functions of Government.

He said all outsourcing initiatives will comply with the established tender and procurement procedures stipulated in the Finance Act 2005 and the Finance Instructions.

The following members the CCACO are:

· Permanent Secretary for Public Enterprise-Chairperson
· Permanent Secretary Public Service-Deputy Chairman
· Permanent Secretary for Works -Member
· Permanent Secretary for Labour- Member
· Permanent Secretary for Finance-Member
· Permanent Secretary for Trade and Industry-Member
· Ministry of Public Enterprises-Secretariat
The Committee will report to the Prime Minister through the Permanent Secretary for Public Enterprises.

-Ends-