Procurement outcome

As a result of the highly successful procurement of auditor services, opted-in Local government and police bodies throughout England will collectively benefit from reduced fees for audit services in 2018/19 compared to 2016/17. Aggregate savings are expected to exceed £6 million per annum, equivalent to a reduction of approximately 18% in the scale fees payable by local bodies.

The national scheme was set up to ensure the delivery of a cost effective, quality audit service for authorities. The collaborative approach will mean that the 484 opted-in local bodies will save the time and expenses associated with establishing and maintaining an independent auditor panel to oversee the procurement and ongoing management of a local auditor arrangements.

Procurement of the audit services started in February 2017 following an exceptionally high take-up of the Appointing Person scheme. The process thoroughly tested audit quality as well as attracting highly competitive prices. The successful firms possess a wealth of public sector audit experience inspiring confidence that high standards of service will be maintained.

The tender process also encouraged firms to think creatively about maximising social value benefits. Their responses promise the creation of more than 400 new apprenticeships over the life of the contract, many of which will be recruited from more disadvantaged communities.

The results of the process announced on 20 June 2017 involve the award of the following contracts:

  • Lot 1 of approx. £14.6 million per audit year was awarded to Grant Thornton LLP;
  • Lot 2 of approx. £10.9 million per audit year was awarded to EY LLP;
  • Lot 3 of approx. £6.6 million per audit year to awarded to Mazars LLP;
  • Lot 4 of approx. £2.2 million per audit year to awarded to BDO LLP;
  • Lot 5 of approx. £2.2 million per audit year to awarded to Deloitte LLP; and
  • Lot 6 with no guaranteed value of work to awarded to a consortium of Moore Stephens LLP and Scott-Moncrieff LLP.

Contracts were awarded on the basis of most economically advantageous tender with 50% of the available score awarded to price and 50% awarded to quality.

The procurement strategy, agreed by the PSAA Board in December 2016, sets out the basis on which the procurement of audit services was carried out.

Having concluded the procurement, PSAA will commence the process of appointing auditors to opted-in bodies. For more information on the auditor appointment process click here.

Local government and police bodies that are not currently opted into PSAA’s scheme can request to join at any time. For more information click here.

The press release can be found here.