CBI Survey and reform of the public procurement system
John Chudleigh • November 11, 2012
The UK coalition government’s proposed reforms of the £230bn pa public procurement system seem like a curate’s egg according to the latest CBI survey, i.e. good in parts.
Good Egg
Respondents thought reforms were on the right track, i.e. the need for simpler and cheaper procedures, better access for SMEs and the need for better information on future opportunities.
Bad Egg
However this was qualified with a poorer response on its implementation. Moreover, only 7% of the 100 respondents, more than half of which were SMEs, thought public procurement was being delivered well. No one thought it was being delivered well. Oh dear, back to the drawing board chaps!
There are clearly contradictions in this Cabinet Office driven initiative according to the CBI’s procurement panel chairman Keith Craven the CEO of Balfour Beatty. “The government has the right policy solutions, but as suppliers, we are yet to feel the changes on the ground. Procurement reform needs to be part of a larger conversation about industrial policy and public service reform where industry wants to play its part.”
Cue Lord Tarzan intervening before breakfast, lunch and dinner replete with Basil Fawlty gait on this one too? Watch this space.
For more details:
Links to the Crown Commercial Service Transforming Public Procurement Programme
The thresholds at which public procurement opportunities are subject to the full suite of UK regulations governing public contracts have been updated. Below are the revised thresholds for public contracts, utilities contracts and concession contracts from 1 January 2024, as per the amendments made to the UK regulations via the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 The Public Contracts Regulations Supplies & Services (except subsidised services contracts) Central Government bodies £139,688 Others £214,904 Subsidised services contracts All bodies £214,904 Works (including subsidised works contracts) All bodies £5,372,609 Light Touch Regime for Services All bodies £663,540 Small lots Supplies and services £70,778 Works £884,720 The Utilities Contracts Regulations 2016 Supplies and Services All sectors £429,809 Works All sectors £5,372,609 Small lots Supplies and Services £70,778 Works £884,720 The Concession Contracts Regulations 2016 Concession contracts £5,372,609 The Defence and Security Public Contracts Regulations 2011 Supplies and Services All sectors £429,809 Works All sectors £5,372,609 Small lots Supplies and Services £70,778 Works £884,720
The Public Contracts Regulations 2015 set out a number of rules for publication of public procurement notices on the Contracts Finder portal. For SME's and voluntary or charitable organisations (VCSEs) Contracts Finder offers easier access to public contract opportunities under the WTO GPA procurement thresholds necessitating publication on Find A Tender (FTS). The notice types found on contract finder are: 1. Early engagement Inviting feedback from industry on early procurement ideas (also known as ‘pre-procurement dialogue’). 2. Future opportunities Information on procurements that are likely to be published in the future. The notice can be used to indicate when existing frameworks, or approved supplier lists or contracts are going to be available to be bid on. 3. Opportunities Live invitations to tender. Used to seek to seek supply chain partners to bid for open public sector opportunities, or to tender for subcontracts in support of delivering a public sector contract, or for lower value contracts. 4. Awarded contracts Procurement opportunities that have been awarded to a supplier/suppliers.
On the 1st of January 2021, OJEU/TED was replaced by a Find A Tender (FTS) service for UK procurement. If contract spend is over the current WTO GPA thresholds then tenders legally need to be posted on Find a Tender. We have successfully adapted our multi-lingual search & alerting service to continue to work with the EU's TED / OJEU portal (TED Alert) and the UK's new Find a Tender System (FTS Alert) providing additional alerting flexibility for our customers.
The UK procurement thresholds are governed by the WTO’s GPA. These thresholds are not subject to review or change until January 2022 and are: The Public Contracts Regulations Supplies & Services (except subsidised services contracts) Schedule 1 bodies £122,976 Others £189,330 Subsidised services contracts All bodies £189,330 Works (including subsidised works contracts) All bodies £4,733,252 Light Touch Regime for Services All bodies £663,540 Small lots Supplies and services £70,778 Works £884,720 The Utilities Contracts Regulations Supplies and Services All sectors £378,660 Works All sectors £4,733,252 Small lots Supplies and Services £70,778 Works £884,720 The Concession Contracts Regulations Concession contracts £4,733,252 The Defence and Security Public Contracts Regulations Supplies and Services All sectors £378,660 Works All sectors £4,733,252 Small lots Supplies and Services £70,778 Works £884,720
NHSX is a new joint organisation that will be responsible for digital, data and technological initiatives across the NHS. It aims to take forward digital transformation initiatives within the NHS and introduce the latest digital services and technology in the healthcare system. A statement from the Department of Health and Social Care states that, among its responsibilities, NHSX will reform procurement by: “helping the NHS buy the right technology through the application of technology standards, streamlined spend controls and new procurement frameworks that support our standards” NHSX will work closely with the NHS and the wider digital economy, to ensure that patients and staff have access to world-class digital services. Training will be part of this to ensure that staff are “digital ready”.
The new threshold values have been increased by 6% and apply from January 1, 2018 For contracting authorities such as central government departments/agencies and local authorities: €144,000 for contracts awarded by central government bodies. €221,000 for contracts awarded by local or regional government bodies, or for authorities operating in the defense sector. €5,548,000 for works contracts to be awarded by any contracting authority. For contracting authorities in the utilities sector: €443,000 for contracts as part of procurement for services. €5,548,000 for works contracts.
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