Why Competitive Tendering and Procurement Doesn’t Work

in Social Care

Dr Simon Duffy of the Centre for Welfare Reform

• Competitive procurement began in the 1980s

• It became the norm for social care in 1992

• It was driven by ideology and the desire to cut costs

• It has led to no improvements in support

• It has caused many serious problems

• The system is now in terminal crisis

Procurement appears rational

Its rationality is an illusion

1. Procurement creates inequality

• CEO of NGO can earn €200,000 per year

• Frontline staff may be on €16,000

• CEO:Frontline = 12.5 : 1

• Zero-hours or temporary contracts (Uber)

• Transferred from organisation to organisation (TUPE)

2. Procurement creates compliance

3. Procurement creates waste

Procurement kills citizenship

4. Procurement destroysvalue