The Government has issued a further consultation on procurement and is promising changes in procurement law when time allows.

Most of the proposed changes have been anticipated but there ae some interesting proposals including a relaxation of competition law in relation to services for vulnerable people.

The key proposals are

• requiring large contracting authorities to publish their their three year target for direct spend with SMEs and VCSEs and to report against it annually
• greater transparency on public authority spending requiring authorities to notify the public of all spending
• excluding suppliers from bidding on major contracts (+£5m) if they cannot demonstrate prompt payment of invoices to their supply chains
• clarifying in primary legislation where it may be appropriate to award contracts for certain services delivered to vulnerable citizens without full competitive procedure
• the introduction of standard assessment for contracting authorities to to test whether service delivery should be inhouse or outsourced for contracts + £5m
• in major contracts of +£5m contracting authorities to set at least one award criteria in major procurements which relates to the quality of the supplier’s contribution to jobs, opportunities or skills with a KPI
• contracting authorities would need to apply a minimum weighting of 10% of the scores available, to social value award criteria and to use standard social value criteria and metrics selected from a streamlined list (to be co-designed with the public sector and suppliers) in their procurement of public contracts.
• allowing contracting authorities to specify the area in which the social value is to be delivered by choosing between the location of a contracting authority’s area of responsibility, the location where the contract will be performed, or the location where the supplier is based.

Public money should work for public good. In her ministerial statement, Georgina Gould, the Minister responsible said that: ” Through these reforms, public procurement will truly be in the service of the people — empowering British businesses, supporting social enterprise, safeguarding our national interests, and tackling today’s challenges while building a prosperous and fair future for all. “

For too long procurement has been an overlooked tool of public policy. If we are to build an inclusive economy we need a procurement system that is fit for purpose and for people. These proposals go some way in recognition of this fact. But there are important measures that could help reduce poverty, create good work and build inclusive economies. Making Real Living Wages and Good Work Conditions standard conditions for public contracts would demonstrate that public services are genuinely on the side of people working for them. If you agree then let the Government know that change is needed. You have until September 5th to respond to the Government’s proposals.

You can find the Government’s proposals here