What’s the importance of procurement in the public sector? Public sector procurement is incredibly important – it allows organisations, especially those working in construction, to maximise output and maintain their supply chain. To find out more about public sector procurement and its importance, we encourage you to read our informative blog today.
An Introduction to Public Sector Procurement
Essentially, public sector procurement is the process of acquiring a product or service by public authorities and other public bodies. These could include government agencies, educational institutions, and charities, to name a few.
As of the second quarter of 2023, approximately 17.3% of the UK workforce was employed in the country’s public sector. As a result, public sector procurement plays a huge role in protecting both public money and resources.
A key principle of public procurement is that it’s based on legal frameworks, following the regulatory standards set out in the Public Contracts Regulations 2015 (PCR15).
Frameworks are designed to encourage open competition and provide value for money. The government states in their public procurement policy that the process of public sector procurement must meet specific principles, including:
- Equality of treatment
- Transparency
- Mutual recognition
- Proportionality
With this in mind, it is vital to understand the importance of procurement through a framework, which should uphold the regulations set out in PCR15. A framework is simply an umbrella agreement that’s put in place between either one provider or multiple that allows buyers to place orders for public services.
The Public Sector Procurement Process
Understanding public procurement processes can be difficult, but we’re here to help. In some cases, the procurement process is commonly referred to simply as tendering. Without public procurement, essential facilities would struggle – hospitals wouldn’t have the medical equipment they need and roads wouldn’t get built.
Both public and private sector procurement often need more transparency and communication. However, with a clear and improved process to follow, these issues can be addressed.
Procurement practices in public sector procurement have significant economic, social, and environmental impacts, supporting sustainability and contributing to new job opportunities. So, what does the public sector procurement process typically look like? The public sector procurement process varies, however, it does follow a generic step-by-step process.
If you’re looking to complete projects in a safe and timely manner while securing great work opportunities, we encourage you to learn more about the public sector procurement process. Let’s take a look at what the process typically follows.
Identifying Requirements
Public sector organisations, particularly those working in construction, must determine their objectives to understand the scope of requirements. This initial stage in the process helps companies better understand the desired outcomes of procurement.
Procurement Scope
Once you’ve selected the products or services, the next stage will involve estimating the procurement value while adhering to the government’s set rules and regulations.
During this stage, you can consider any vital steps, such as delivery schedules and compliance, to name a few. The procurement scope paves the way for the following steps to come.
Choose the Best Procurement Method
An important stage in the process is considering the best tender processes. It depends on your organisation, project requirements and whether you choose to launch an open tender, or use a framework.
At Procure Partnerships Framework, we offer four call-off methods. Each call-off method is designed to be flexible for users, with different benefits and timescales attached to each. However, it’s important to mention that regardless of the route you choose, early contractor engagement is crucial to ensure project success.
Assess Potential Tenders
Ensure requirements are met and that potential bidders are trustworthy and compliant. Suppliers should use this stage to prove their credibility and compliance efforts.
At Procure Partnerships Framework, we support public sector organisations to compliantly appoint pre-qualified professional services consultants and principal contractors for their projects.
Issue Tender Documents
Buyers issue tender documents to either pre-qualified suppliers if it’s going through a framework, or via open tender.
You’ll need to send an invitation and a request for quotation – sending detailed documentation is key, stating your business requirements and clear timescales of when they need to respond.
Bid and Tender Evaluation
As soon as tenders are submitted, the stage of bid evaluation and validation can begin. Tender evaluations should be structured and transparent. It’s during this stage that the post-tender negotiation will likely take place.
Once the key stages of public sector procurement have been completed, your organisation will need to award a contract to the winning bidder. This decision-making process is solely the client’s responsibility, frameworks can not advise which supplier to award.
Essentially, the evaluation stage sets the foundations for a working relationship between the buyer and supplier. To minimise risk, specific terms and conditions will need to be agreed upon at this stage and clear timescales should be discussed by all parties involved.
Provide Feedback to Unsuccessful Bidders.
Once the awarded bidder has been confirmed, buyers must provide feedback to unsuccessful suppliers, otherwise they could be in breach of the Public Contracts Regulations (2015). This feedback is crucial for suppliers, as it helps them make necessary improvements for future tenders.
At Procure Partnerships Framework, we aim to reduce the admin load for our clients by offering a best-in-class tender support service. We can support clients by managing clarifications and providing feedback to unsuccessful bidders.
Benefits of Utilising a Public Sector Framework
Utilising a public sector framework comes with several benefits. Not only does it help to ensure that the quality of goods and services is well-maintained, but it helps costs stay within budget.
From helping to streamline the procurement process, to increasing transparency, government entities with construction projects could greatly benefit from using frameworks – but what other advantages do they provide?
Increased Quality of Competition
Competition helps support efficiency, innovation, and quality across public services. Regardless of the background of potential bidders, public sector procurement encourages open competition throughout. However, open competition routes such as open tenders often result in competitive bidding from less desirable applicants.
Using a framework, like Procure Partnerships, would be more efficient. We offer a list of pre-qualified, trusted contractors that will bid on your projects. With frameworks, you tend to have more competitive bidding from leading, experienced contractors.
Promotes Innovation
Innovation is encouraged throughout public sector procurement. Public sector frameworks are there for fairness and value for money in public spending. As mentioned, frameworks encourage competition, which drives innovation and best practice throughout.
Finding The Best Suppliers
Finding the best suppliers might seem like a challenge, but it doesn’t have to be! Procure Partnerships Framework helps clients working in the built environment sector find the most trustworthy and reliable suppliers available.
While working in the construction sector, it’s vital to find quality suppliers to work on your projects – by choosing the right framework, you’ll have access to pre-approved and compliant suppliers.
Why Use a Public Sector Framework?
Why use a public sector framework? At Procure Partnerships Framework, we have five frameworks available for construction, professional services, infrastructure, decarbonisation and retrofit, and demolition projects.
According to Public Spending Statistics, gross spending on public sector procurement was £393 billion between 2022 and 2023 across the UK. Our framework not only reduces procurement costs but speeds the process up while promoting transparency and compliance.
Each framework we offer is fully PCR15-compliant, and managed by a team of regional procurement professionals. We work closely with clients, ensuring that they’re able to find the best procurement route.
Our expert team of specialists are on hand to discuss any questions you might have regarding our frameworks – to find out more, please get in touch today.
