Local authorities play a crucial role in providing essential services to their communities. Finding the right suppliers is key to delivering these services efficiently and cost-effectively. Local authorities can identify new suppliers by researching budget plans, attending industry events, and leveraging digital platforms.
Unlocking insights from local government budget plans can help authorities pinpoint areas with ring-fenced funding for specific services or solutions. This approach allows for targeted supplier searches aligned with available resources. Additionally, industry events provide valuable networking opportunities to connect with potential suppliers and learn about innovative offerings.
Digital platforms and frameworks, such as the Digital Specialists and Programmes Framework, offer streamlined access to pre-vetted suppliers. These tools can significantly reduce the time and effort required to identify suitable partners for digital transformation projects and other specialised services.
Key Takeaways
- Budget analysis helps identify suppliers aligned with available funding
- Industry events and digital platforms facilitate new supplier connections
- Procurement frameworks streamline the supplier identification process
Understanding Public Procurement Framework
Public procurement in the UK is governed by a set of regulations and policies that local authorities must follow. These frameworks aim to ensure fair competition, value for money, and transparency in public spending.
Procurement Act 2023 Overview
The Procurement Act 2023 introduces significant changes to the public procurement landscape. It simplifies and consolidates existing regulations, making it easier for local authorities to navigate the procurement process.
Key features of the Act include:
- A new supplier registration system
- Streamlined procurement procedures
- Enhanced transparency requirements
- Improved mechanisms for addressing poor supplier performance
These changes are designed to make public procurement more efficient and accessible for both buyers and suppliers.
National Procurement Policy Statement Requirements
The National Procurement Policy Statement (NPPS) sets out the government's priorities for public procurement. Local authorities must consider these when planning their procurement activities.
The NPPS focuses on:
- Social value creation
- Commercial and procurement delivery
- Skills and capability for procurement
- Supply chain resilience
Local government spend on procurement exceeded £70 billion in 2021, highlighting the importance of adhering to these requirements.
Public Contracts Regulations 2015 and 2024
The Public Contracts Regulations 2015 currently govern most public procurement in the UK. These regulations set out the procedures for awarding contracts above certain financial thresholds.
Key aspects include:
- Advertising requirements
- Selection and award criteria
- Standstill periods
The upcoming Procurement Regulations 2024 will replace the 2015 regulations on 24 February 2025. They will align with the Procurement Act 2023, further simplifying the procurement process for local authorities.
Identifying Potential Suppliers
Local authorities can find new suppliers through various methods. These approaches help discover innovative solutions and support local economic growth.
Engaging With Market Innovators
Local authorities can tap into innovative suppliers by attending industry events and trade shows. These gatherings showcase cutting-edge products and services.
Authorities may also set up innovation challenges or competitions. These invite creative solutions to specific problems.
Networking with innovative suppliers can uncover novel approaches. This may include meeting with tech startups or research institutions.
Engaging consultants or experts in emerging fields is another strategy. They can provide insights on new technologies and suppliers in specialised areas.
Leveraging Local and SME Involvement
Local authorities can boost their economies by working with nearby businesses. They might host supplier open days or information sessions for local companies.
Creating a supplier diversity programme can help find SMEs and social enterprises. This might involve setting targets for spending with smaller firms.
Authorities can break larger contracts into smaller lots. This makes it easier for SMEs to bid on public sector work.
Partnering with local chambers of commerce or business groups can expand the supplier network. These organisations often have extensive contacts with area companies.
Utilising Central Digital Platforms
Digital procurement platforms streamline the process of finding new suppliers. The UK government offers centralised portals for public sector tenders.
These platforms allow suppliers to register their details and capabilities. Local authorities can then search for specific goods or services.
E-marketplaces can help authorities compare prices and quality across multiple suppliers. This promotes competition and value for money.
Digital tools can also help track supplier performance and manage contracts. This data informs future procurement decisions.
Effective Procurement Strategies
Local authorities can boost their procurement efforts by using targeted approaches. These strategies help find new suppliers, get better value, and support community goals.
Strategic Planning for Future Procurements
Strategic planning is key for successful procurement. Local councils should look at their long-term needs and market trends. This helps them spot gaps and find new suppliers.
A good plan starts with a clear timeline. It should list all upcoming contracts and when they need to be renewed. This gives time to research new options.
Councils can also use market engagement to learn about new suppliers. This might include:
- Supplier open days
- Pre-tender consultations
- Online surveys
These events let councils talk to potential suppliers before formal bidding starts. They can learn about new tech and services that might help their community.
Incorporating Social Value Considerations
Social value is about getting more from council spending. It's not just about the lowest price, but also about wider benefits for the community.
The Procurement Act 2023 puts more focus on social value. From 24 February 2025, councils must think about how their buying helps local people and businesses.
Some ways to add social value include:
- Asking suppliers to hire local apprentices
- Picking firms that use green energy
- Choosing suppliers that pay the Living Wage
Councils should set clear social value goals in their tender docs. They can use scoring systems that give extra points for social benefits.
Adopting 'Should Cost' Modelling
'Should cost' modelling helps councils work out fair prices for goods and services. It looks at all the costs a supplier might face to deliver a contract.
This method can:
- Stop councils overpaying
- Help spot unrealistic low bids
- Make negotiations with suppliers easier
To use 'should cost', councils need good data. They should look at past contracts, market rates, and supplier accounts. This info helps build a realistic cost model.
Councils can then use this model when assessing bids. It helps them spot good value offers and challenge prices that seem too high or low.
Tendering Process and Evaluation
Local authorities must follow a structured approach when evaluating tenders to select the best suppliers. This involves setting clear criteria, allowing time for unsuccessful bidders to challenge decisions, and addressing unusually low bids.
Developing Clear Award Criteria
Tender evaluation requires well-defined criteria to assess supplier bids fairly. Local authorities should establish these criteria before issuing the tender. Key factors often include:
• Price
• Quality of goods or services
• Technical capability
• Delivery timelines
• Environmental considerations
It's crucial to weight each criterion based on its importance. This helps identify the most economically advantageous tender (MEAT), which may not always be the cheapest option.
Authorities should clearly communicate these criteria to potential suppliers in the tender documents. This promotes transparency and allows bidders to tailor their proposals accordingly.
Managing the Standstill Period
The standstill period is a mandatory waiting time between announcing the contract award decision and finalising the agreement. Its purpose is to:
• Allow unsuccessful bidders to challenge the decision if they believe it was unfair
• Prevent the formation of contracts based on improper award decisions
During this time, local authorities must:
- Notify all bidders of the award decision
- Provide feedback on why unsuccessful bids were rejected
- Be prepared to respond to any questions or challenges from bidders
This period typically lasts 10 calendar days. It's essential to handle this phase professionally to maintain good relationships with suppliers and avoid legal disputes.
Handling Abnormally Low Tenders
Abnormally low tenders are bids that seem unrealistically cheap compared to other offers or market rates. While they may appear attractive, they can pose risks such as:
• Poor quality of goods or services
• Inability to fulfil contract obligations
• Unfair competition
Local authorities should have a process to identify and investigate such bids. This may involve:
- Setting a threshold for what constitutes an abnormally low tender
- Requesting detailed explanations from the bidder about their pricing
- Assessing the viability of the offer based on the explanations provided
If the explanations are unsatisfactory, authorities may reject the bid. However, this decision must be justified and documented to ensure fairness and transparency in the procurement process.
Ensuring Transparency and Compliance
Local authorities can boost transparency and compliance in their supplier identification processes through strategic practices. These methods help create a fair, open, and accountable procurement environment.
Publishing Pipeline Notices
Pipeline notices are crucial for transparency in public procurement. They give potential suppliers early insight into upcoming opportunities. Local authorities should publish these notices regularly on designated platforms.
The notices should include:
- Project descriptions
- Estimated timelines
- Budget ranges
- Required qualifications
This information helps suppliers prepare and assess their suitability for contracts. It also promotes competition by attracting a wider pool of bidders.
Maintaining an Open Procurement Pipeline
An open procurement pipeline ensures fairness and encourages diverse supplier participation. Local authorities can achieve this by:
- Regularly updating their procurement plans
- Using simple, clear language in all communications
- Providing equal access to information for all potential suppliers
Authorities should also consider implementing a 'Tell Us Once' system. This allows suppliers to input information once for use across multiple procurement processes.
Adhering to Data Protection Standards
Protecting sensitive information is vital in procurement processes. Local authorities must follow strict data protection standards when handling supplier data.
Key practices include:
- Securing all digital platforms used for procurement
- Training staff on data protection regulations
- Implementing robust data management systems
Authorities should also be transparent about how they use and store supplier data. This builds trust and encourages more businesses to participate in public contracts.
By following these guidelines, local authorities can create a more transparent and compliant procurement process. This approach benefits both the public sector and potential suppliers.
Engaging with the Public and Private Sectors
Local authorities can find new suppliers by working with both public and private organisations. This approach helps bring in fresh ideas and resources. It also supports local businesses and improves services.
Public Sector Collaboration
Public sector teamwork is key for local authorities to find new suppliers. Councils can share knowledge about good suppliers with each other. This helps everyone make better choices.
Government departments often have lists of trusted suppliers. Local authorities can use these to find new options. They can also join buying groups with other councils. This gives them more power when talking to suppliers.
Working with schools, hospitals, and other public bodies can uncover hidden gems. These organisations might know local suppliers that councils haven't met yet.
Private Sector Partnerships
Private companies can be great partners for finding new suppliers. They often have wide networks and know the latest market trends.
Local authorities can host supplier fairs with help from chambers of commerce. This lets them meet lots of potential new suppliers in one place.
Big firms might have smaller suppliers they can recommend. Councils can ask for introductions to these companies.
It's important to be clear about what the council needs. Private partners can then help find the right suppliers for specific projects.
Developing Supplier Diversity
Having a mix of different suppliers is good for councils. It helps them get better value and new ideas.
Local authorities should look for small businesses and startups. These firms often bring fresh thinking and can be very keen to work with councils.
Community organisations can be great suppliers too. They know local needs well and can offer unique services.
Councils should set targets for working with diverse suppliers. This might include women-owned businesses or firms run by ethnic minorities.
Training sessions can help new suppliers learn how to work with local government. This makes it easier for them to bid for contracts.
Reinforcing Economic and Social Impact
Local authorities can strengthen their communities through strategic supplier selection. This approach boosts the local economy, supports sustainability, and addresses social needs.
Promoting Economic Growth
Local authorities play a key role in fostering economic growth. They can create new businesses and jobs by choosing suppliers that invest in the area. This might include firms that offer apprenticeships or training programmes.
Supplier diversity is crucial. Authorities should seek out small and medium-sized enterprises (SMEs) and minority-owned businesses. This approach spreads economic benefits more widely.
Value for money remains important. But it's not just about the lowest price. Authorities should consider long-term economic impact when assessing bids.
Environmental Sustainability Initiatives
Climate change is a pressing concern for local authorities. They can use procurement to tackle this issue.
Suppliers should be evaluated on their environmental practices. This might include:
- Carbon reduction plans
- Use of renewable energy
- Waste reduction strategies
- Sustainable transport options
Authorities can set specific targets for suppliers. For example, they might require a certain percentage of materials to be recycled.
Local sourcing can also reduce environmental impact. It cuts transport emissions and supports the local green economy.
Supporting Social Housing Projects
Social housing is a critical issue for many communities. Local authorities can use procurement to address this need.
They should look for suppliers with experience in social housing projects. These firms understand the unique challenges and requirements.
Authorities can set targets for affordable housing in development contracts. This ensures new builds include a mix of housing types.
Quality is crucial in social housing. Suppliers should demonstrate a commitment to building safe, energy-efficient homes.
Authorities can also prioritise suppliers who offer training or employment opportunities to social housing residents. This approach creates a positive cycle of community development.
Professional Development and Innovation
Local authorities can boost their procurement capabilities through targeted skill enhancement and fostering innovation. These efforts help identify new suppliers and improve overall procurement outcomes.
Enhancing Skills and Development
Procurement professionals need ongoing training to stay current with best practices. Regular workshops on market analysis, negotiation tactics, and contract management are essential.
Online courses and certifications can also build expertise in specific areas like sustainable procurement or IT sourcing. Mentoring programmes pair experienced staff with newer team members to share knowledge.
Attending industry conferences exposes procurement teams to new ideas and networking opportunities. Many local authorities find value in cross-department skill sharing to broaden perspectives.
Encouraging Innovation within Supply Chains
Local authorities can spur innovation by setting challenging problems for suppliers to solve. This approach helps uncover creative solutions and new suppliers.
Organising innovation contests or hackathons can attract diverse ideas from start-ups and SMEs. Providing opportunities for suppliers to demonstrate new technologies allows authorities to evaluate cutting-edge solutions firsthand.
Incorporating innovation criteria in tenders encourages suppliers to propose novel approaches. Flexible procurement methods, like competitive dialogue, allow for refinement of ideas during the process.
Appointing a Procurement Champion
Designating a procurement champion within the organisation can drive innovation efforts. This role advocates for modern procurement practices and builds support across departments.
The champion identifies opportunities to test new approaches and technologies. They also track innovation targets and report on progress to leadership.
A key responsibility is fostering a culture of continuous improvement in procurement. The champion organises training, shares success stories, and encourages staff to propose new ideas.
By serving as a point of contact for innovative suppliers, the procurement champion helps bring fresh perspectives into the authority's supply chain.
Ongoing Contract Management
Effective contract management is crucial for local authorities to ensure value for money and maintain quality service delivery. It involves oversight, relationship building, and continuous improvement.
Implementing Effective Contract Oversight
Contract oversight begins with clear performance metrics. Local authorities should establish key performance indicators (KPIs) to measure supplier performance. These KPIs must align with contract objectives.
Regular monitoring is essential. Authorities can use dashboards or reports to track progress. This allows for quick identification of issues.
When problems arise, prompt action is necessary. Authorities should have a structured process for addressing performance gaps. This may involve:
- Meetings with suppliers
- Improvement plans
- Penalties for non-compliance
Proper documentation of all interactions and decisions is vital. It helps with accountability and future reference.
Fostering Healthy Vendor Relationships
Building strong relationships with suppliers is key to successful contract management. Open communication channels are essential. Regular meetings help maintain dialogue and address concerns proactively.
Local authorities should aim for a collaborative approach. This involves:
- Sharing information
- Joint problem-solving
- Recognising good performance
Supplier relationship management at a strategic level can lead to innovation and efficiency gains. It's important to balance cooperation with maintaining professional boundaries.
Authorities should also be prepared to manage conflicts. Clear dispute resolution procedures can help resolve issues quickly and fairly.
Continuous Improvement Practices
Contract management is not static. Local authorities should regularly review and update their processes. This can involve:
- Analysing performance data
- Seeking feedback from stakeholders
- Benchmarking against best practices
Lessons learned from current contracts should inform future procurement decisions. Authorities can use this knowledge to refine specifications and selection criteria.
Training for contract managers is crucial. It ensures they have the skills to handle complex supplier relationships and contractual issues.
Technology can enhance contract management. Software solutions can automate monitoring, generate reports, and flag issues automatically. This frees up time for strategic activities.
Frequently Asked Questions
Local authorities face several key considerations when identifying and selecting new suppliers. The process involves specific criteria, compliance requirements, and digital tools to ensure fair and effective procurement.
What criteria should local authorities use to evaluate potential suppliers under the latest procurement regulations?
Local authorities should assess suppliers based on their financial stability, technical capabilities, and past performance. They must also consider value for money and social value aspects. Environmental impact and sustainability practices are becoming increasingly important evaluation factors.
How can parish councils ensure compliance with current procurement rules when selecting suppliers?
Parish councils must follow transparent and competitive procedures. They should use standardised tender documents and evaluation criteria. It's crucial to keep detailed records of the selection process and decisions made.
What steps are involved in the supplier selection process as per the Procurement Act 2023?
The Procurement Act 2023 outlines a structured approach. This includes publishing notices, setting clear selection criteria, and evaluating bids fairly. Suppliers will need to register on a new central platform early in 2025.
How does the central digital platform facilitate the procurement process for local governments?
The central platform will streamline supplier registration and bid submission. It will provide a single point of access for procurement opportunities across different local authorities. This system aims to make the process more efficient and accessible for both buyers and suppliers.
How should local authorities publish procurement notices to attract new suppliers?
Local authorities should use clear, concise language in their notices. They must provide sufficient detail about requirements and evaluation criteria. Publishing on the central platform and other relevant channels will help reach a wider pool of potential suppliers.
In what ways can local governments integrate the national procurement strategy to improve supplier relationships?
Local governments can adopt best practices from the national strategy. This includes fostering early market engagement and promoting innovation. They should also focus on building long-term partnerships with suppliers and encouraging continuous improvement.