The BBC’s Management of Strategic Contracts with the Private Sector: NAO Full Report


Over the last decade the BBC has built up a portfolio of 17 ‘strategic contracts’ with private sector suppliers to provide it with key services including the transmission of its radio and television programmes, information technology and financial and accounting services. In 2007-08 the BBC spent £715 million with these suppliers, a fifth of its annual licence fee income.

This NAO Full Report examines whether the BBC is securing the service and financial objectives it outlined when it entered into the individual strategic contracts and whether the BBC has taken adequate steps to maximise the value for money of its portfolio of strategic contracts.

The BBC is looking to develop a more strategic approach to the management of its portfolio of strategic contracts to improve the value for money it achieves from the £715 million a year it spends on these contracts. At present, however, the BBC has not finished collating information on costs and performance for all its strategic contracts, or routinely validated information provided by suppliers. The variability of contract and relationship management across the portfolio indicates that the BBC has further to go to achieve the best practice approach it is seeking in managing its portfolio of contracts.

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