Here the full FT article (paywalled) from
Badgers ' post above, in case you can't get to it (it's paywalled). I didn't realise that dated back to May 4th, but it's good.
Consultants in line of fire over projects to tackle coronavirus
Tabby Kinder, May 4th 2020
UK government faces criticism over transparency of contracts handed to KPMG and Deloitte
On Mother’s Day weekend in March, just before Britain was plunged into lockdown, phones started ringing in the homes of senior consultants at some of the UK’s biggest accountancy firms. Government agencies were taking emergency measures to protect against, test for and treat coronavirus and needed help managing what was rapidly becoming a daunting logistical challenge.
NHS England hired a team of about 60 consultants at KPMG to build seven temporary Nightingale hospitals that could treat thousands of coronavirus patients in need of critical care.
Deloitte was recruited by the Department of Health and Social Care to help create a network of up to 50 testing facilities around the UK and by the Cabinet Office to assist with the procurement of personal protective equipment for frontline NHS staff.
A month later, a string of complaints from health officials and industry figures over the services provided have raised concerns at the rapid outsourcing of consultants during the pandemic — particularly the transparency around contracts and whether the firms are set up to manage such critical projects during a national health emergency.
The KPMG and Deloitte projects were contracted out to the accounting firms without competition, and the agreements, which detail the sums paid for the work, have not yet been made public. They are just three of many consulting contracts agreed at pace by the government as the pandemic gripped the country.
The British government was able to recruit the firms quickly after it suspended its usual procurement procedures, which require contracts with a value of more than £10,000 to be publicly advertised and awarded only after a competitive tender. The move enabled a speedy response to the Covid-19 crisis but clouded visibility over how taxpayer money was being spent on private firms. Despite the new rules stating that departments must publish a contract award notice within 30 days of its agreement, almost none have done so.
An agreement between EY and the Department for Business, Energy and Industrial Strategy in April to provide guidance for various business sectors on how to reopen after the lockdown has also not yet been published.
“There is a worrying lack of transparency over government spending to combat the impact of coronavirus,” Rachel Reeves, shadow chancellor of the Duchy of Lancaster, told the Financial Times. “The government must cast its net widely as part of this national effort and not just rely on opaque arrangements with the Big Four accountancy firms.” There is a worrying lack of transparency over government spending to combat the impact of coronavirus Rachel Deloitte and KPMG said they had agreed to work for reduced rates for the government on its coronavirus services, but both declined to give details of the fees. Senior consultants at the large accounting firms have in the past been charged out at up to £1,000 per hour, while more junior staff can bring in fees of around £300 an hour.
NHS England has not revealed how much has so far been spent on the Nightingale hospitals. The Department for Business said it would not comment on its commercial contracts. “There’s a risk that we never know what was spent under the emergency system,” said Ian Makgill, director of OpenOpps, which monitors public sector contracts.
Gus Tugendhat, founder of Tussell, which collects information on UK government contracts stressed that the crisis “should not be used as a pretext for lowering standards of transparency. Accountability around how much is being spent, on what and with whom matters more than ever.”
The Big Four firms, which also include PwC, audit almost all of Britain’s large companies and have advisory practices that employ tens of thousands of consultants. They have won hundreds of millions of pounds’ worth of new government contracts in recent years despite several high-profile audit failures and fines for misconduct.
The government has been criticised for the large sums it has spent on consultants in the past, including paying more than £100m for advice on Brexit and £600m on the HS2 rail link.
But its reliance on consultants during the Covid-19 crisis has prompted fresh scrutiny.
Dr Simon Festing, chief executive of the British Healthcare Trades Association, said: “People who are just brought in from the outside are not going to have the technical expertise. It’s a different order of complexity.”
Ms Reeves added that the firms had “questionable experience in areas such as medical testing and procuring personal protective equipment”.
KPMG and Deloitte have relationships with ministers and in the healthcare service, having worked on the design of NHS Improvement, a body set up in 2016 that oversees the NHS foundation trusts.
Yet Deloitte has been criticised for a series of administrative errors at coronavirus testing centres that have lost NHS staff results or sent them to the wrong person. Doctors, frustrated by the failures at a testing site at Chessington in Surrey, discussed how to take control of the centre.
Deloitte has also been accused of delays in its procurement of PPE for hospitals. Several manufacturers that offered to provide kit described the process as shambolic and claimed there was a lack of understanding on the specifications that must be adhered to when making life-saving products.
“We need to ask how did Deloitte come to be appointed and how much did it cost for these very poor decisions to be made,” said Rosie Cooper, MP for West Lancashire and a member of parliament’s health and social care committee. The committee, led by Jeremy Hunt, is investigating the government’s management of the coronavirus outbreak. Deloitte said it was supporting the government on testing but that it did not “run or manage” the centres. It said it was providing operational support on the procurement of PPE. The department of health said the “full weight of the government is behind our PPE strategy” in response to a request for comment on its work with Deloitte.
KPMG was lauded for the speed with which the Nightingale hospitals were up and running. The first facility in east London’s Docklands was completed nine days after KPMG was drafted in as project manager, working alongside military planners and several smaller infrastructure consultancies, including Mott MacDonald and Archus.
But a month on, the unknown sums paid to consultants are part of a debate on the value of the hospitals, the majority of which have taken only a handful of patients.
The government said it was “supported by a number of public and private sector partners” when asked about its reliance on consultants to provide key public services during the coronavirus pandemic. “[They] are providing additional expertise and resource to help deliver significant programmes of work as part of the national effort,” said a spokesperson.
Additional reporting by Niku Asgari and Gill Plimmer
[ETA : Cutting out surplus text, adding paragraph breaks, etc.]