As a UK supplier to the UK Government, we at Spearfish are interested in the Procurement Bill that is currently at the report stage for ourselves and our clients.
Amongst its amendments, this bill aims to make changes to the tender process for SMEs. Last week, we were invited to attend a British Expertise International (BEI) event that focused on this very topic and was attended by the UK International Development sector. As the bill proceeds through the final stages of Parliament, we will be watching closely to see how it develops and how it will impact the procurement process for SMEs.
Overview
The Procurement Bill proposes reforms to the UK's public procurement system, with the aim of improving value for money, transparency, and integrity. Currently, one in every three pounds of public money, around £300 billion a year, is spent on public procurement. The Bill will create a simpler, more flexible, and commercial system that meets the country's needs while complying with international obligations. It will consolidate the over 350 different procurement regulations into a single regime, creating one rule book for everyone to use. The Bill will create a digital platform for suppliers to register their details once for use in any bids, and a central online transparency platform to allow suppliers to see all opportunities in one place, accelerating spending with SMEs. The theme of transparency runs throughout the Bill, and it aims to deliver world-leading standards of transparency in public procurement.
SME’s
It seeks to achieve this by removing outdated rules and regulations inherited from the EU, creating a new central platform to show future work in each area, reducing unnecessary insurance costs, strengthening prompt payment, and introducing a Competitive Flexible procedure that allows contractors to design more innovation into the process, benefiting smaller tech startups. Additionally, the Bill will benefit SMEs by creating greater visibility of upcoming work, allowing them more time to gear up for bidding, and creating a single website to register on, rather than multiple time-consuming systems. It will also no longer be a necessity to have the relevant insurance to be in place before the award of a contract and will increase the threshold for publishing KPI data to contracts valued at £5 million.
MEAT or MAT Model
The Procurement Bill proposes to move away from the Most Economically Advantageous Tender (MEAT) model towards the Most Advantageous Tender (MAT) model. While MEAT prioritises the lowest price, MAT considers a range of factors beyond just price to determine the most advantageous tender. These factors may include social, environmental, and qualitative considerations, such as the supplier's ability to meet the needs of the public body and deliver long-term value for money. The MAT model aims to create a more level playing field for SMEs that may not be able to compete on price alone but can offer other advantages, such as innovative solutions or a greater focus on sustainability. Therefore, while the Procurement Bill may move away from a purely commercial emphasis, it aims to create a fairer and more competitive procurement system that considers a broader range of factors beyond just price.
Conclusion
The Procurement Bill proposes significant reforms to the UK's public procurement system, with a focus on improving value for money, transparency, and integrity. The changes include moving towards a MAT model, consolidating regulations into a single regime, creating digital platforms for suppliers, and increasing opportunities for SMEs. The MAT model aims to create a more level playing field for SMEs by considering a broader range of factors beyond just price when awarding contracts. Overall, the Procurement Bill seeks to modernise and simplify the procurement process, while promoting fairness, competition, and innovation. Will this really happen, the jury is still out but there is hope it will be.