After attending the many insightful sessions at Procurement Act Live last week, I’ve been reflecting on the key messages that emerged throughout the day. 

Following on from my LinkedIn post about the CMA-led session - discussing how changes to the exclusions provisions and the new debarment list will complement their work - I set out the additional takeaways that stood out to me.

The scale of procurement

A speaker from the Institute for Government think tank shared compelling statistics from a report on improving accountability in government procurement: nearly half of all local government spending is on procurement. Other observations included:

• SME spend has increased in local government (but declined in central government).
• Central guidance must be combined with flexibility for contracting authorities to address their specific needs.
• Questioning the impact of debarment of suppliers in markets with limited competition or significant historic reliance on few suppliers; what happens if a key supplier is debarred? It strikes me that the central government’s award of contracts to Fujitsu post-Post Office scandal exemplifies the complexity of this issue.

Embracing competitive flexibility

A strong message from the event was the encouragement to ‘be brave’  in utilising the Competitive Flexible Procedure introduced by the Procurement Act 2023 (see our Procurement UnpACked briefing on preparing your markets, and yourselves, for the CFP here). This offers opportunities for bespoke procurement processes that lead to fully customised solutions.

Alan Heron of Places for People emphasised three critical factors in achieving this:

• Early and meaningful stakeholder engagement to drive innovative and tailored solutions.
• Technology and integrated systems to support compliance with payment notices and transparency requirements, as well as ensuring streamlined contract management.
• Evolving supplier relationships, recognising that the wider transparency requirements mean more is at stake for suppliers when performance issues arise.

The role of social housing in procurement

The social housing sector is actively shaping its role in the procurement landscape through the formation of the National Housing Procurement Association (NHPA). NHPA’s Chief Officer, John Wallace of Clarion Housing Group, highlighted:

• NHPA’s commitment to improving engagement and best practices.
• The importance of knowledge-sharing and engagement with the Cabinet Office to ensure providers of social housing have a voice.
• The interplay between procurement reform and achieving broader objectives, including driving social value through local partnerships to meet the varied needs of residents.

Delivering social value through procurement

Sessions on social value reinforced the importance of:

• Leveraging existing funded programs to enhance procurement impact.
• Ensuring delivery aligns with broader social and economic goals, creating meaningful community benefits through procurement decisions.

Strengthening oversight and compliance

The Procurement Review Unit and the Debarment and Investigations team discussed their expanding role in reducing risks, increasing transparency, and ensuring fairness in public procurement. Notably, the Procurement Compliance Service will:

• Investigate systemic breaches of the Procurement Act.
• Issue recommendations for improvement.
• Enhance oversight to promote compliance and accountability.

Nonetheless, the extent to which the Service can actually enforce its recommendations, whilst conversely the extended poor performance exclusion grounds and debarment list means increased accountability and risks for suppliers.

Other sessions focused on the benefits and challenges associated with the growing use of AI in Procurement.

Final thoughts

The varied sessions underscored the evolving landscape of public procurement - opportunities for greater flexibility, increased transparency and accountability, and a stronger push for social value. 

As we move forward, the challenge will be to foster competition while ensuring compliance, and fully leverage procurement as a tool for positive change.

For more commentary on the Procurement Act 2023, what it means for you and what you need to know, check out our Procurement UnpACked series here.