The new Act has core aims: simplify the bidding processes; make commercial frameworks more open; remove bureaucratic barriers for smaller businesses; and require public bodies to provide feedback for suppliers. With the Act also comes a central digital platform, Find a Tender, which compiles information on contracts so suppliers can easily source and bid on contracts.

“The UK Procurement Act is a win for Davids over the Goliaths of the business world,” said Steve Haskew, Group Director of Sustainability and Growth, Circular Computing in a comment provided. “This long-awaited legislation should make the procurement process more transparent, slam the door on ‘chumocracy’ and clear the way for smaller companies to partner with the public sector.

“Greater flexibility around tendering and faster payments for suppliers will be a huge fillip to the UK’s SMEs and help level the playing field when it comes to contract pitching. Allowing more businesses to throw their hat into the ring for public sector projects will also improve the quality of winning bids, ensure better value for money and allow more specialists to shine.”

Haskew added that the Act will “embed circular economy principles into procurement,” supporting more sustainable choices.

Demystifying the Procurement Act

Stotles recently hosted a webinar demystifying the Act, providing their insights and understanding, which Electronic Specifier/Procurement Pro attended.

One key talking point throughout the webinar was how the Procurement Act, should, ostensibly, create more opportunities for suppliers, particularly small to medium enterprises (SMEs), which was looked at from a number of different angles.

“The conclusion that we’ve come to is that the Procurement Act is going to make selling to the public sector one more competitive, and two more commercial,” said Rose Crees, Marketing Manager. “Flexibility offered by the new ways that you can be procured from in the Act is the real driver of this.”

The flexibility in question facilitates suppliers having more face time with buyers; more data to use to identify buyer intent and buying processes; and more routes to market.

“One of the most important ones will be more face time with buyers to position yourselves as the best option. Historically we’ve heard that you’re not allowed to do that ahead of procurement going to market,” added Crees. “This is part of the new Procurement Act that will allow authorities to tailor their procurement activities to better align with specific project requirements and market conditions.”

This will prove an added bonus for small to medium enterprises SMEs, Crees explained, who previously experienced difficulties with not being part of the conversation.

“Economic growth is a major objective of the Labour government and this will involve particular support of SMEs,” stressed Crees.

In the same vein that flexibility presents these opportunities, there will also be more responsibilities placed on suppliers in the form of there being a focus on holistic value - identifying how well suppliers are doing through the lens of overall value, and not just price - supplier debarment and exclusion for poor behaviour, setting KPIs and equitable supplier access laying out SMEs’ access to opportunities, too.

“The standard that suppliers must reach under the Procurement Act to win and retain their contracts is getting higher and it will be harder for bad agents to continuously work across the public sector,” said Crees, citing the Fujitsu Horizon scandal as an example of supplier behaviour that perhaps wouldn’t be tolerated today.

On the subject of risks and unknowns that come with the Act, Crees discussed the increase in data as having the potential to confuse, flexibility making way for subjectivity, and there being new barriers for SMEs, such as having difficulty with proving their social value as one of the requirements.

“SMEs have fewer resources to deliver those social value outcomes. For some of them, they might have to create entirely new programmes or find new ways to evidence the good that they’re doing to society,” said Crees.

Ultimately, Stotles advised weighing up the Procurement Act’s opportunities and risks in a balanced approach, and to be patient with both confused suppliers and buyers as they adjust to these new changes.

“See it as an opportunity,” said Crees. “You can work with them, build relationships with them, help to create this new world and find out what works for them but [what] also works for you. Use it to strengthen your relationships.” 

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