Key Goals of Local Government Procurement
Value for Money
Maximizing public resources through cost-effective purchasing decisions while maintaining high quality standards
Transparency
Ensuring procurement processes are documented, accessible, and accountable to both stakeholders and the public
Fair Competition
Creating a level playing field where all qualified suppliers have equal opportunity to compete for contracts through open bidding processes
Supporting Local Businesses
Strengthening community economic development by prioritizing local suppliers while maintaining competitive standards
The Procurement Act 2023
Shift in Focus
Fundamental change from 'most economically advantageous tender' to 'most advantageous tender', enabling broader evaluation criteria beyond just cost considerations.
2. Social Value Emphasis
Enhanced requirements for social value assessment, including environmental sustainability, community benefits, and local economic growth in procurement decisions.
3. Simplified Processes
Introduction of streamlined procedures for contracts below thresholds, reducing administrative burden and accelerating procurement timelines for smaller projects.
4. SME Access
Targeted reforms to remove barriers for small and medium-sized enterprises, including simplified bidding processes and reduced qualification requirements for smaller contracts.
National Procurement Strategy Themes
Our procurement strategy is built on three interconnected themes that drive success:
- Showing Leadership: Clear direction and stakeholder engagement
- Behaving Commercially: Business-focused practices for efficiency
- Achieving Community Benefits: Delivering tangible local impact
These three themes work together to create a comprehensive approach to procurement that balances strategic leadership, commercial efficiency, and community value.
Developing a Strategic Approach
1.Set Clear Objectives
Define specific, measurable targets aligned with overall vision
2. Strong Leadership
Champion procurement matters and understand strategic importance
3. Incorporate Local Priorities
Focus on job creation, skills development, and environmental protection
Process Mapping
Create detailed end-to-end workflow diagrams to identify bottlenecks, streamline approval chains, and optimize resource allocation across procurement cycles
Procurement Toolkits
Implement standardized templates, risk assessment checklists, and comprehensive guidance documents aligned with public sector compliance requirements and best practices
Digital Platforms
Deploy integrated e-procurement systems to automate routine tasks, enhance supplier communication, and create clear audit trails for improved accountability.
Operational Efficiency in Procurement
Sustainable and Social Value-Oriented Procurement
Integrating Social Value
Set minimum social value requirements in tenders and include social value clauses in contracts. This might involve suppliers hiring local apprentices or supporting community projects.
Environmental Wellbeing
Set carbon reduction targets for suppliers, favour low-emission vehicles, and require eco-friendly packaging. Ask bidders to provide carbon footprint assessments and environmental management plans.
Sustainable Supply Chains
Conduct supplier audits, require fair labour certifications, and promote local and diverse suppliers. Address worker rights, responsible sourcing, and reducing transport emissions.
Effective Contract Management
Set Clear Targets
Define measurable KPIs and quality benchmarks to drive supplier accountability and excellence in service delivery
Monitor Performance
Leverage advanced data analytics to track spending patterns, monitor supplier compliance, and proactively identify cost optimization opportunities
Supplier Relationships
Foster strategic partnerships through structured quarterly reviews, collaborative problem-solving sessions, and open communication channels
Continuous Improvement
Implement systematic feedback loops to capture insights, document best practices, and enhance procurement processes for greater efficiency
Transparency and Public Trust
Publish Procurement Plans
Proactively share comprehensive procurement roadmaps to help stakeholders understand upcoming projects, budget allocations, and strategic procurement priorities.
Disclose Contract Details
Publicly release comprehensive contract award information, including vendor selection criteria, total contract value, and performance expectations to foster accountability.
Use Simple Language
Transform complex procurement documentation into clear, accessible language that enables citizens, small businesses, and community
members to understand public spending processes.
Implement Digital Tools
Develop user-friendly online platforms that provide real-time, transparent access to procurement information, enabling easy public monitoring and engagement
Adapting to Changes and Future Trends
Local government procurement is undergoing a profound transformation, driven by technological innovation, sustainability imperatives, and evolving societal expectations. The landscape is shifting rapidly, compelling councils to develop more agile, responsive, and forward-thinking procurement strategies.
Digital transformation stands at the forefront of this evolution. Advanced e-procurement systems, artificial intelligence, and data analytics are revolutionizing how councils source, evaluate, and manage suppliers. These technologies enable more efficient decision-making, reduce administrative overhead, and create unprecedented transparency in procurement processes.
Sustainability has emerged as a critical consideration, with councils increasingly prioritizing environmental and social impacts. This means not just reducing carbon footprints, but actively supporting local economies, promoting diverse and inclusive supply chains, and embedding social value into procurement frameworks.
Collaboration is becoming a strategic imperative. Councils are recognizing the benefits of sharing resources, joint procurement initiatives, and cross-municipal partnerships. By pooling expertise and negotiating power, local governments can achieve more cost-effective, innovative solutions that serve community needs more effectively.
Emerging technologies like blockchain, Internet of Things (IoT), and advanced predictive analytics are creating new possibilities for procurement. These technologies offer enhanced traceability, real-time monitoring, and more sophisticated risk management capabilities, enabling councils to make more informed, data-driven decisions.
To navigate these complex changes, local government procurement teams must cultivate a culture of continuous learning, technological adaptability, and strategic thinking. By embracing innovation, prioritizing sustainability, and remaining flexible, councils can transform procurement from a purely transactional function into a strategic driver of community value and organizational resilience.
Frequently Asked Questions
Local government procurement involves key steps, policies, and strategies. It requires compliance with national guidelines while considering local needs. Effective contract management is crucial for success.
The tender process starts with identifying needs. Councils then create a specification and publish the tender. They evaluate bids based on set criteria.
Next, they select the winning bid and award the contract. The final step is contract management and performance monitoring.
Companies must understand each council's specific policies and review the National Procurement Strategy for guidance.
Firms need to show how they meet social value requirements. They must also demonstrate value for money and sustainability practices.
A robust strategy focuses on value beyond just cost. It includes plans for social value and sustainability.
The strategy should outline how to engage with small and medium-sized enterprises. It must also include methods for managing risks and ensuring transparency.
The national strategy sets benchmarks for local practices and encourages councils to focus on the most advantageous tender rather than just the cheapest.
It also promotes innovation in procurement methods and pushes for greater collaboration between councils.
Parish councils must follow transparency rules and ensure fair competition and avoid conflicts of interest.
Value for money is crucial, and parish councils should also consider local economic impact in their decisions.
Councils should use clear, measurable performance indicators. This will help them keep track of each supplier's progress and address any issues.
Effective contract management includes monitoring costs and quality. Councils must be ready to take action if suppliers fail to meet standards.