Buying Solutions in talks with panel firms to lower legal spend

Office of Government Commerce agency Buying Solutions has kicked off the first phase of a review of its 48-strong legal panel as the Government looks to cut both legal spend and the number of law firms it instructs.

The organisation has begun talks with all of the law firms on its panel, formerly known as Catalist, amid continued questions over the Government's efforts to centralise Whitehall legal spending.

A team of procurement officers will compile a comprehensive report on current market trends in order to assess what to expect from advisers in terms of fee arrangements and other value-added services.

The review is being led by chief executive Alison Littley alongside director of corporate services David Murray.

A Buying Solutions spokes-person commented: "As with all our procurements, we will be conducting market research and engaging with stakeholders before making any decisions on future arrangements."

Firms currently on the panel include Allen & Overy, Linklaters, Freshfields Bruck-haus Deringer, Herbert Smith, DLA Piper, Eversheds and Norton Rose.

The second phase of the procurement cycle is due to kick off in January, when firms will be asked to produce a short pitch in order to qualify for the second, more detailed process.

Separately, it has emerged that Buying Solutions has asked all 48 members of the panel to pitch for an appointment as a supplier for its own legal services, the results of which are due to be announced in mid-October.

One partner at a panel firm commented: "There is some confusion as to why Buying Solutions would need to appoint a single law firm when the point of the panel was to centralise legal spending. This may centre around the fact that many do not know how to use the panel."

Many partners argue that the panel has been a step backwards and has failed to deliver the promised workflow or gain wider support from Government departments.

News of the review comes amid concerns from lawyers handling public sector work that fee levels will be severely hit by the coalition Government's programme of spending cuts.

For more, see Regional development agencies early victims of public spending cuts