The Crown Commercial Service ("CCS") has released guidance to government departments after some suppliers had reported that procurements were being conducted in ways that result in "disproportionate or inappropriate risk transfer". There has also been criticism that onerous requirements are "stifling innovation" and are leading to increased costs.
The guidance must be implemented immediately and applies to:
(collectively referred to as "Organisations").
The CCS has stated that the following matters (in addition to matters considered in previous guidance notes) are seen as best practice when Organisations conduct procurements:
Pre-procurement engagement with the market (including potential suppliers) is now expressly permitted under procurement law. Engaging with the market is "essential good practice, helps to maximise value and encourage appropriate innovation".
Accurate and reliable data should be made available to suppliers both during a procurement process and throughout the contract period, particularly where it is necessary to manage demand and performance. Poor quality data can "disproportionately affect risk transfer in the contract".
Value for money is the "best mix of quality and effectiveness for the least outlay over the period of the use of the goods or services bought".
Organisations should be careful to avoid putting in place a "blanket approach" and should carefully consider the risks contained in the contract and discuss any such risks with the suppliers pre-procurement. The approach taken by Organisations should be proportionate.
Organisations should consider:
Adopt a collaborative approach to managing change
Comment
It is interesting that the CCS has seen the need to formally state what is already procurement good practice. The CCS is attempting to further encourage collaboration between suppliers, in particular SMEs, and Organisations to ensure that the contract represents good value for money for Organisations, whilst ensuring that suppliers are not unnecessarily burdened.
Article written by Lucy Woods.