UK public procurement can be very interesting at times. The new Procurement Act is a case in point, especially in the context of government procurement and its international obligations and regulations. The procurement market is changing to reflect modern society’s changing needs; for example, social value and environmental factors are increasingly important to consumers and end-users.
To stay relevant and keep up with demand, the government has no choice but to adjust its procurement strategy and increase the weight of social value in its evaluation and selection of suppliers.
However, for some enterprises and organisations change is the exact opposite of a holiday. It’s stressful and difficult and there’s the tendency to rigidly avoid the risk that change brings.
Delta eSourcing has extensive experience in public procurement, as demonstrated by over 500 satisfied UK public sector organisations that have navigated the changes (and risks) to succeed in the industry.
Below, we’re going to explore the key areas where Delta eSourcing provides critical assistance for you to adapt to new public sector procurement requirements.
Demystifying UK Public Procurement Regulations
While much of the new Act stays the same as the old, there are important differences in procurement legislation.
Open and Fair Competition
The UK’s public procurement policy is in line with international regulations, including the EU procurement directives, which emphasise free and open competition and value for money. A large part of this has to do with removing barriers that make it difficult for SMEs to compete with other public sector suppliers.
Non-discrimination, equality of treatment, transparency, and mutual recognition ensure that all stakeholders are aware of each stage of the procurement process and can monitor contract awarding to ensure it remains free and fair.
Supplier Selection Criteria for Contracting Authorities
Supplier selection depends on the nature of the contract, but the Act provides a list of priorities that contracting authorities must include in their final decision.
Note: The Act lists priorities but, aside from social value, the weight you attach is up to you and your needs. Social value must have a minimum weight of 10%.
A brief look:
Value for money
Price and value for money are lumped together because price is no longer the primary determining factor, value for money is. That means the overall package.
So supplier A might quote £3333 and Supplier B £4444. But, Supplier B has an ISO 9001 quality management rating, which Supplier A does not have. Supplier B also has a great reputation for reliability. Supplier A is also reliable, but with fewer, slightly less glowing references and testimonials.
Supplier B provides greater value for money and is the logical choice.
If, however, Supplier A provides far more social value, you’ve got some thinking to do.
Quality and reliability
A reputation for quality is great, a case study that demonstrates quality is better. However, one is subjective and the other could very well be a fluke. Consistent quality is essential and that’s what ISO 9001 certification provides. Certification factors include:
- Customer confidence
- Effective complaint resolution
- Process improvement
- Ongoing optimisation
Reliability is bound up in quality. Unreliable suppliers can’t possibly provide quality services.
Speed and flexibility
Flexible suppliers respond quickly to change. They can scale up or down, shift focus sideways, and adapt to innovation. Small suppliers are generally more flexible than larger enterprises, so if your field experiences rapid development (think AI), you’d do well to include SMEs in your tendering process.
Speed is obviously a quick turnaround time. How long between placing an order and receiving the goods? Ideally, suppliers must manage risks like bottlenecks and delays and allow relatively small, yet frequent orders because you don’t want to be stuck with a warehouse full of redundant and out of date equipment that won’t sell.
Clear communication
The value of clear communication can’t be overemphasised. It’s essential to check in regularly with feedback and updates to ensure all stakeholders are aware of progress. Basically, where suppliers are in their supply chain and have had to make changes to remain compliant with industry regulations. For example, switching to a new raw materials supplier because the old one had ties to modern slavery. Suppliers must be informed for many reasons, including delayed time.
Financial stability
Suppliers must have been financially stable for the preceding three years, and have a sunny outlook for the future. Investigating suppliers’ finances is crucial because you’re spending taxpayers money and are accountable for every penny.
Contracting authorities have an alternative option if they want to reduce their financial risk even further. Multiple suppliers. It’s the whole eggs and baskets scenario. If something should affect one supplier, there are already others who can pick up the shortfall.
Transparency and Accountability
Transparency is a big deal in public sector procurement. It’s important for stakeholders to ensure relevant government bodies are held accountable for their spending, and their supplier selection. The idea is to publish information for public consumption. For example, buyers are legally required to publish contract and contract awards notices on Contracts Finder – provided they are above threshold.
- £10,000 for central government departments
- £25,000 for wider public sector bodies
Transparency and accountability provide many benefits:
- Increased competition
- Improved quality
- Reduced risk, including fraud
- Better contract monitoring and management
- No conflict of interest
Accountability
Accountability is when certain people or teams are designated tasks or operations and are responsible for what happens within their ambit. There are two primary accountability systems: Formal and informal. Formal is best for the public sector because every action and interaction must be recorded as proof of said actions and interactions.
Formal systems are structured and governed by predetermined policies and procedures. The system clearly indicates who is responsible for which task, the criteria of the task, and the consequences of non-compliance.
Policies can be created for:
- Supplier prequalification
- Inventory management
- Purchase orders
- Contracting procedures
- Reporting requirements
Contract Award Procedures under Procurement Legislation
Under the new UK Procurement Act, which introduces updated procurement rules and procedures, there are only two contract award procedures.
- Open: Single-stage procedure which is largely unchanged from the Public Contracts Regulations 2015.
- Competitive flexible: Multi-stage procedure introduced by the Act. Buyers can choose how to use the procedure. For example, a two-stage procedure that comprises an SQ (selection questionnaire) and ITT (invitation to tender). They could also use a restricted procedure.
Contracts are awarded to those who provide the Most Advantageous Tender (MAT). That is, the supplier who provides the best overall value or value for money, and not the supplier with the lowest price.
Stay Up To Date With Qualifications
So far, the government hasn’t made professional qualifications mandatory. However, qualifications are preferred and some contracting authorities include qualifications in the contract criteria, but it’s largely voluntary.
CIPS provides the best qualifications that set Global Standards. CIPS (Chartered Institute of Procurement & Supply) is dedicated to improving public sector procurement by ensuring members have access to the latest information, tools, and insights.
CIPS provides several training courses for all levels of experience.
- CIPS Level 2: Certificate in Procurement and Supply
- CIPS Level 3: Advanced Certificate in Procurement and Supply Operations
- CIPS Level 4: Diploma in Procurement and Supply
- CIPS Level 5: Advanced Diploma in Procurement and Supply
- CIPS Level 6: Professional Diploma in Procurement and Supply
- Procurement Apprenticeships
Courses are available online.
Delta eSourcing also provides training opportunities
Delta provides PASS – Procurement Advice and Support Service – a training, consultancy, and support system to public and private sector business enterprises. PASS also offers training on compliance with secondary legislation, ensuring that organisations understand and implement the detailed regulations of newly passed Acts. PASS covers the following:
- Public sector consultancy
- Provide sector consultancy
- How to write specifications
- How to complete tender documents
- Strategy best practices
- Risk management
- Bid management
- Contract management
Streamline Procurement Processes
Automation and other procurement-related tools, like analytics software and eTendering portals, can drastically streamline public procurement, saving buyers and suppliers a lot of time and money.
Delta provides tools and strategies that increase the efficiency of the procurement process. The benefits can be felt up and down the supply chain,
Here are three ways in which Delta eSourcing smooths procurement.
Automated workflows for tendering and evaluation
Delta and its sister companies automate tendering tasks. Register on one of our contracts finder platforms, complete the profile, and you won’t have to enter the same information each time you want to bid on a contract. Compliance with contract regulations is streamlined through our automated systems.
Portals do more than just find suitable contract opportunities. They have filing mechanisms so buyers and suppliers can review and revise their bid data.
Our Tender Management System includes an evaluation tool so you can develop an automated evaluation plan. The tool enables you to get quite detailed, for example, you can enter percentage weightings for your criteria.
Preconfigured templates for compliant tender documents
Public bodies are likely to have several contracts going on simultaneously. It doesn’t make sense to create a new contract from scratch every time they need something, so they create a template. Templates can be updated whenever necessary and tweaked to suit individual contracts.
Local government organisations also benefit from using these templates to ensure compliance with specific regulations and legal frameworks.
Our templates are set up to ensure they are compliant with legal and industry regulations. This saves a huge amount of time and ensures you needn’t worry about compliance – until the next set of changes comes.
Secure document management and communication channels
Delta’s eTender portal enables buyers to create, exchange, and store documents. In addition to secure communication, it ensures compliance with international obligations related to public procurement and trade agreements. Documents are filed logically, so you can always find exactly what you’re looking for. Automation features also ensure data is accurate, without risk of human error.
Tender management software facilitates document sharing and communication. It also tracks all communication on the platform, which means there is a clear audit trail should disputes arise.
Enhanced Transparency and Auditability in Government Procurement
Delta eSourcing’s management systems can be used separately or in any combination that simplifies your procurement process. Whatever you decide, you can be sure that the processes will be transparent (in line with procurement regulations in the UK) and auditable. For example, our workspace module includes an activity log that records every interaction and communication. This provides a full audit trail – essentially rock-solid proof that something did or did not happen.
Contracts that are placed on Dynamic Purchasing Systems are accessible to all interested parties. Any changes to the contract are published so that all interested parties are always aware of the contract’s status. This is one way in which modern public procurement ensures transparency.
Benefits of Using Delta eSourcing
Delta eSourcing provides such an array of services that we can’t list them all here. Instead, here are four of the benefits that we consider priorities.
Compliance is all but guaranteed: The new Procurement Act has changed or updated many of the old regulations. The result is that some companies are accidentally non-compliant and are at risk of expensive penalties. Our platform provides the guidance you need to be thoroughly compliant with modern procurement practices and public procurement regulation.
Efficiency gets a boost: The modules, software, and tools we provide streamline the procurement process, giving you more time to focus on core activities and optimise resource allocation.
Improved decision-making: The reports and analytics data generated provide insight into your procurement process so you can make informed decisions based on real-time data and changes in the market.
Enhanced collaboration: Our platform facilitates collaboration among stakeholders. This is great for relationships and future projects and can also lead to unexpected innovation.
Get Started with Delta eSourcing
Are you ready to grab the proverbial bull by the horns and take your procurement processes to the next level?
It’s simple.
- Download our free white paper: “Navigating the UK Procurement Landscape: A Guide for Public Sector Organisations”
- Request a free demo: Experience the power of Delta eSourcing firsthand.
- Contact our team: Our dedicated support team is here to answer your questions.
You can confidently navigate the complexities of UK public procurement regulation with Delta eSourcing in your corner. Partner with us and make your procurement goals a reality.
