In 2012, the UK government launched the G-Cloud procurement framework. It was designed to simplify public sector procurement, shorten the selection timeframe, and encourage SMEs to enter the public procurement marketplace. It’s been pretty successful because over 90% of suppliers using the G-Cloud platform are SMEs. In fact, 72% of G-Cloud suppliers are micro or small businesses.
The interesting thing is that these positive figures belong almost entirely to central government departments, with local government bodies being much slower on the uptake. The local public sector accounts for only 6% of those who purchase cloud-based services on the G-cloud platform.
We’re going to look at why local contracting authorities need to adjust their perception of the market and join the national procurement movement.
We’re also going to look at how the G-cloud framework impacts global procurement.
In the end, it should be apparent why G-Cloud 13 software has such far-reaching benefits and why local government sector procurement ought to play a much greater role in the wider international marketplace.
What is G-Cloud 13?
Briefly, G-cloud 13 is a digital marketplace where public sector buyers survey suppliers’ goods as they are listed in three lots. They choose the supplier or suppliers who best meet the contract’s requirements within the G-cloud lots.
Up to G-cloud 12, there were three lots divided into cloud hosting services, cloud software, and cloud support services. G-cloud 13 introduced a fourth lot which is similar to the original three but for much larger infrastructure services.
It’s important to note that G-cloud software is only available for organisations that provide cloud-based computing services. Non-cloud technology services aren’t considered.
G-Cloud Hosting and Support Services & Crown Commercial Service
Crown Commercial Service (CCS) works hand-in-hand with the UK government to offer a wide range of commercial agreements that provide cost-effective solutions for public sector customers.
CCS plays an important role in G-cloud software uptake among local and central government bodies as it supports and manages the Public Procurement Gateway, the platform through which the G-cloud framework is accessed.
This arrangement may sound complicated, but there’s no need to tackle the process on your own. You can outsource G-cloud adoption services to agencies that provide specialised cloud management consultancy services. You remain focused on your own service and core business activities.
How Does G-Cloud 13 Benefit the Public Sector?
This is an important question, especially for SMEs that are just starting to explore the public sector and want to build a solid foundation using the G-cloud 13 framework.
G-Cloud 13 Benefits
We’re going to look at how the benefits of a G-cloud 13 framework agreement can boost the local and global economy.
1) Makes public procurement easier for public sector organisations.
Public procurement buyers save aeons of time thanks to the way G-cloud 13 simplifies government procurement. For instance, only pre-approved suppliers are allowed on the framework, so there’s no need to sift through hundreds of tender applications to find candidates that provide the desired cloud services.
Furthermore, G-cloud software provides a single, centralised marketplace where buyers can view approved suppliers and choose those who meet the contract requirements.
All of this leads to a shortened procurement cycle, which means turnaround times are quicker and more contracts are completed ahead of schedule. This leaves time for even more contracts for cloud-based computing services to be published.
The situation is great for multiple suppliers because they have more opportunities to bid on contracts relevant to their cloud-based services. This growth has knock-on effects that can be felt globally.
2) Provides a foundation for digital transformation.
The world is on a digital mission. If it can be made digital it is. If it can’t be made digital, tech teams put their heads together to make it so. Unfortunately, the government sector isn’t known for its early adaptation of technology, but G-cloud software removes many of the obstacles to transformation.
The framework is developed with digital transformation in mind, using software development tools to deliver innovative suppliers and their problem-solving ideas to the attention of public sector bodies.
This strongly ‘encourages’ transformation and gives local and central government bodies the solutions necessary to help them meet digital transformation goals.
The goals can be set on a local and national level, after which public sector buyers can set their sights on the international market.
3) Provides access to a wide supplier pool.
Because only pre-approved suppliers are added to the framework, there’s a good chance that buyers for central government and other public sector bodies will be exposed to service and product providers that might easily have been missed in the traditional buying process.
There are several reasons for this.
- Government buyers set criteria that might not be entirely relevant to the cloud services required.
- It takes too long to manually sort through tenders, so some promising leads might be overlooked.
- Resistance to change. Public sector bodies often use the same supplier pool.
- Buyer bias, similar to the above, is when buyers intentionally or unintentionally favour some suppliers over others.
G-cloud software evaluates suppliers without bias or prejudice to deliver the absolute best candidates for the contract.
Hiring the best candidate ensures that the entire supply chain functions more efficiently and effectively. Buyers get the boost they need to change focus from local and central government procurement markets to the global digital marketplace using the latest technology driven by G-cloud software.
4) Buyers can use call-off contracts to their advantage.
A call-off contract enables buyers and suppliers to save money and increase efficiency by breaking up public sector contracts into bite-size pieces. These pieces are determined by buyers and added to the framework agreement. Suppliers must agree to the terms before work can commence.
Call-off contracts aren’t suitable for all transactions. They’re most commonly used for materials that are required in bulk. Essentially, the entire order is staggered – materials are delivered in batches and only when specifically required.
This means buyers aren’t stuck with huge amounts of stock (and associated costs, like storage and security services) for the duration of their projects; which also reduces the risk of theft, vandalism, and decay.
This also benefits suppliers. Because they don’t need to keep items in bulk, suppliers also benefit from lower storage costs. They have the opportunity to use the resulting gaps to improve their business services for UK central government departments.
This allows suppliers to develop higher quality assurance measures based on real-world performance testing.
In the end, a call-off contract is a cost-effective way to deliver on contracts for both parties. Cost savings can be redistributed to other projects, increasing output, and adding to the economy brick by brick.
G-cloud 13 has call-off contract functionality to economise and optimise buyer-supplier transactions.
5) Guarantees transparency in line with government regulations.
Transparency is a legal requirement in public sector procurement. It includes open access to supplier information, including their services, products, or works and pricing.
It also includes fair handling of data to ensure all cloud service suppliers are treated fairly and that there is no favouritism for an existing supplier and no prejudice against new suppliers in the buying process – even if it’s unintentional.
Transparency includes audit trails, using the latest technology to document and record every action and interaction between buyers and suppliers during the procurement process. It’s evidentiary proof that all regulations have been followed, all requirements met, and all parties are compliant with public procurement law.
Transparency is built into the G-cloud 13 framework so that all parties comply with regulations.
There are two primary reasons for transparency in procurement.
1) Members of the public can see exactly how their tax money is used to their benefit.
2) Trust is fostered between buyers and suppliers.
Trust is a crucial element of economic growth in UK central and local government departments. Trusted organisations already have credibility when they enter the global procurement market, which encourages early market engagement, successful tenders, and a thriving global economy.
Government Contracting Authorities Get A Boost From Delta eSourcing
G-cloud 13’s benefits for UK government organisations are evident, as are the benefits that ripple through to the international market. However, getting started on the G-cloud platform can be tricky, especially for those new to the government’s buying process.
In these cases, it helps to have eProcurement and eSourcing professionals take care of the complex requirements and technical details on your behalf.
Delta eSourcing uses its eTendering portal to simplify procurement processes. A range of tools, including analytics and tender management, combined with decades of experience in the government sector, enables Delta eSourcing to kickstart your transition to government procurement for local, central, and arm’s length bodies.
This gives you the impetus you need to make your mark on an international scale.
Contact Delta eSourcing to book a free demo and discover the many ways in which your business will benefit from our procurement management and business intelligence technology.
