Public sector – UK government advocates new strategic approach to procurement
07 February 2012
Minister for the Cabinet Office, Francis Maude, has
announced a new strategic approach to how government
procures goods and services. Since coming into power, the
coalition Government has already saved £800m by renegotiating
existing contracts. Maude now wants the Government to:
- Work closely with domestic firms so they are geared up to win
British and other European contracts;
- Stop over-interpreting EU law and overreacting to fears of bias
in favour of British suppliers;
- Talk to suppliers before starting major procurements because
"it is not illegal for public sector procurers to talk to
suppliers … it’s plain common sense and good commercial
practice";
- Nurture mutually beneficial long-term relationships with key
suppliers and make it easier and less expensive for SMEs to work
with Government; and
- Be the most pro-business Government ever and open
its doors to all kinds of business and business
models.
In 2011, the Government launched a website to
enable suppliers to find tender opportunities and the public to see
what Government has bought/is buying. Maude's new strategy
will also mean:
- New LEAN sourcing principles being implemented across
Government from January so that "all but the most complex
procurement turnarounds to within 120 working days – a 40%
reduction";
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- A "presumption against
the use of the clunky and protracted competitive dialogue process
which in our view slows things up unnecessarily"; and
- Negotiating with the EU to
radically simplify the public procurement Directives.
In addition to simplifying
the process, the Government is attempting to give IT and FM
suppliers certainty by publishing a resource pipeline
showing £50bn+ worth of potential business for the lifetime of the
coalition Government (with further pipelines planned for other
sectors).
We have been working with a number of clients
over the past few months to help them with LEAN sourcing.
Although bid time and costs are being reduced, it is important to
ensure that this is not compromising the quality of the tender
documentation, including the contract.
For more information please
contact Lisa Comber, Director in
the Technology and Outsourcing Group at Field Fisher Waterhouse LLP.