The Cabinet Office has extended two major learning and development contracts awarded to KPMG and Ernst & Young by almost £150m, citing high demand.
Contract variations signed with the two providers have extended the existing four-year contracts – which were originally scheduled to conclude in October 2024 – by another year.
The total value of KPMG’s contract has risen from £158m to £237m and EY’s from £130m to £195m. These are framework contracts and as such there is no spending commitment – departments may dip into this fund as and when required.
A spokesperson for the Cabinet Office told CSW: “Demand for assured and quality training has increased beyond levels originally forecast. This demand has been particularly seen in technical training, such as professional qualifications.
“There is a large body of evaluation evidence developed by academic experts across a range of sectors, which shows well-directed investment in effective learning and development generates return-on-investment through outcomes like improved business performance and enhanced productivity.”
The two deals have been extended under Regulation 72(1)(b) of the Public Contracts Regulations 2015, which says that contracts can be modified without a new tender process if a new deal cannot be put in place for technical reasons, or if a change of contract would cause “significant inconvenience or substantial duplication of costs for the contracting authority”. Under this regulation, the extension cannot exceed 50% of the value of the original contract.
Contract documents for the KPMG deal say that in the Cabinet Office’s view, the provider is the only company that can deliver the training “because competition is absent for technical reasons and no reasonable alternative or substitute exists”.
“Our view is that no alternative provider could take over the provision of the relevant learning and development services from the point that these services are required in July 2024 as there is insufficient time for transition to another provider to take place,” it says.
“This absence of competition is not the result of an artificial narrowing down of the parameters of the procurement.”
The department expects to open a new procurement exercise this summer for replacement learning and development services beyond October 2025.
The new contract variations will contribute to growing core skills as well as providing opportunities for tailored learning for civil servants.
According to the Crown Commercial Service website, this agreement is open to all UK public sector organisations. The learning and development covers core skills around leadership and management, digital skills, cyber, net zero, access to executive coaches, facilitators and speakers, and more.
KPMG manages courses at the online Government Campus, which is the “digital home of civil service learning”. The firm also offers a focus on tailored learning, including “policymaking, communication and personal effectiveness”.
According to the Cabinet Office, the increase in spending is part of a continuous drive to “continue to upskill and train staff to ensure they can meet the challenges of the day and continue to deliver for the public”.