The House of Commons public administration and constitutional affairs committee found there are fundamental flaws in the way the government awards contracts because of “an aggressive approach to risk transfer”.
The report, published on Monday, found that ministers try to spend as little money as possible when awarding contracts while forcing contractors to take unacceptable levels of financial risk.
Often the government does not fully understand the risks it is transferring to private companies, the committee says.
It’s a risk, so no one does understand it properly, of course.
But then that’s rather the point isn’t it? That the people carrying the risk have skin in the game? That capital is at risk as that buffer against that risk?