Procurement Legislation Incoming…
Changes to procurement legislation have been a long time in the making and are a key pillar of the Government’s wider post-Brexit reforms. The new Procurement Act was given Royal Ascent in October 2023 and is due to go live in October of this year. It will represent the largest and most radical overhaul in procurement legislation in over thirty years.
It’s worth noting that expenditure on outsourced services is estimated to be in excess of £300 billion per year, funding vital services that play an integral role in our everyday lives.
Over the last few months an increasing number of our public and private sector clients have asked our opinion about the impact the Procurement Act will have on the way they conduct business. This prompted us write a blog. This blog in fact…
By the Government’s own admission, the Procurement Act will create big changes and challenges to commissioners working at a national and local level, transforming the way they procure and manage services. Its overarching aim is to simplify and improve the current regime and make it more flexible and agile. There will be a focus on delivering value for money, maximising public benefit and acting with integrity.
In practice, this translates into:
Greater flexibility for Commissioners
Commissioners will now have the autonomy to decide which procurement procedure they choose to commission a service. They can award contracts through a competitive process of their own design. This is important. The language in the Procurement Act is symbolic and points to a different strategic approach to procurement. Award notices will now be based on the ‘Most Advantageous Tender’ (MAT), as opposed to the Most Economically Advantageous Tender (MEAT)!
A change in the weighting given to particular tender sections
The feedback we have had from Commissioners points to higher weighting being given to questions relating to:
Maximising public benefit through social value and making meaningful commitments through agreed Key Performance Indicators (KPIs)
Demonstrating a strong understanding and awareness of place -shaped policies and initiatives that highlight local integration with key services and stakeholders. This will become increasingly important when bidding for services in devolved areas
Providing a robust performance track record of delivering the services that are being procured (again with a focus on demonstrating the achievement of Key Performance Indicators)
Higher levels of due diligence to ensure that commitments articulated within bids and proposals are realistic and achievable
As the use of AI increases, we also anticipate Commissioners making greater use of commercial dialogue to scrutinise and test operational delivery solutions.
What does this mean for prospective bidders?
It’s difficult to fully understand the impact of the new Procurement Act, but the policy intent does point to a few key things:
Bids and proposals becoming part of a wider, more robust procurement process
Early commissioner engagement, especially during the bid capture stage to understand service requirements
Building meaningful relationships with key stakeholders in the service locality; requiring more focus on business development on the ground
Solution development and design should be clearly thought through and led by a subject matter expert who will be involved in future delivery; Commissioners will potentially test this through commercial dialogue
Focusing on building up a track record of delivering against contractual Key Performance Indicators to demonstrate strong performance
As the go-live date for the Procurement Act approaches, we will be sharing further insights. We’d be interested to hear your thoughts. Please get in touch.
David MacDougall
Managing Consultant
david@50-degrees.com