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06/07/2007 13:42
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Companies need to understand the long-term value of a procurement contract in order to prevent mistakes, it has been claimed.
The Commons Public Accounts Committee (PAC) claimed that the BBC failed to bear this in mind when its ten-year contract with Siemens Business Services delivered £22 million, when it guaranteed £35.2 million, VNUNet.com has reported.
According to PAC chairman Edward Leigh, the broadcaster did not put in place "provision to share profits above an agreed level".
"Indeed, the BBC has not checked how profitable the contract actually is for Siemens," he said.
As well as this, the executive criticised the organisation for dealing with other companies outside of the contact - a message of mistrust, the report stated.
The Commons Public Accounts Committee is made up of 16 members of the Liberal Democrats Labour and Conservative parties including MPs Richard Bacon, Austin Mitchell and Chris Bryant.
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