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I have mused on this blog about where the next changes to UK public procurement rules might come from, particularly post Brexit. The last revision to the regulations were via EU law nearly 10 years ago, with the ‘Public Contracts Regulations 2015’.
Well at last the Westminster ‘Procurement Act 2023’ although later than the Oct 28th release expected, is almost upon us and planned to come into force in Feb 2025. The legislation aims to ‘simplify and improve’ the UK's public procurement processes. This includes Housing associations, Councils and Socialhousing providers, among others, such as big spenders like Network Rail. Over £300 billion is spent annually, so its not small beer.
As can be expected, this bill originating from the Sunak Tory administration paints this as, "throwing complicated and bureaucratic EU rules into the bin and stripping back red tape". To be honest I never found OJEU troublesome and actually a single place for potential Suppliers to research opportunities, was no bad thing.
The act is designed to:
1) Improve value for money: Reduce costs for the public sector and businesses
2) Increase transparency: Allow taxpayers to scrutinize how their money is spent
3) Open up opportunities: Allow new entrants, such as small businesses and social enterprises, to compete for public contracts
4) Create a more flexible commercial system: Meet the country's needs while remaining compliant with international obligations
So, how is it attempting to achieve the above?
1) Centralized platforms - Pipeline and tender notices for opportunities over certain thresholds will be published on centralized platforms
2) New shiny ‘Contracts Finder’ - Buyers will be required to publish notices to Contracts Finder when a contract is modified or terminated
3) KPI reporting - KPIs for contracts over £5m will be measured and reported on in the public domain
4) Assessment summaries - Suppliers who submit an assessed tender will receive an assessment summary explaining why their tender was successful or unsuccessful
5) Digital platform - Suppliers will be able to register and store their details on a central digital platform
To support greater transparency, much more reporting (particularly £5m contracts and above), will be necessary from Contracting Bodies. A few other tweaks such as swapping MEAT (Most Economically Advantageous Tender), with MAT (Most Advantageous Tender), should provide greater reassurance to contracting authorities that they can take a broader view of what can be included in the evaluation of tenders. Not actually a massive change as we could already prioritise quality over price if needed. We still in procurements need to ask the right questions to properly evaluate quality better, in order to not just waste higher levels of public money.
The Act introduces new terminology for excluded and exclude-able suppliers and introduces a central debarment list on which a UK Government Minister may record the names of excluded or excludable suppliers. This attempts to tackle anti-competitive agreements and cartel activity.
Commitments under international treaties, such as the WTO ‘Agreement on Government Procurement’ have reduced some level of the simplification that can be applied.
Once we have been working under the new regime for a year or so, I should come back share some opinions. In the meantime, if you or your procurement bods need to bone up on the new changes, all the learning module lessons can be found here.
Related Post: Does your organisation purposely 'Warm Up The Market' for more effective procurements?
I would be pleased to connect with you on LinkedIn - http://uk.linkedin.com/in/tonysmiththathousingitguy Message me with any issues or queries, you would like to be explored in this blog. We generally receive a couple of suggestions each month.
Cornershop - 'Lessons Learn't From Rocky I To Rocky III' .
(c) Tony Smith, Acutance Consulting www.acutanceconsulting.co.uk 07854-655009
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