Reductions in funding have made it increasingly difficult to manage local government procurement. Increasing demand for public services compounds the problem and even if the public is sensitive to local government’s plight (which it’s not), the pressure to perform is enormous.
The Local Government Association (LGA) is determined to ease the burden, which is why co-developed the National Procurement Strategy 2022. The Strategy provides local councils with greater autonomy to set their objectives and metrics, provided they align with the central government.
The Strategy emphasises the councillor’s role in procurement, especially in procurement and contract management. This doesn’t mean councillors suddenly need degrees in procurement, but it does mean they should get adequate training in procurement, including the practical and financial aspects that directly impact awarding tenders.
The LGA estimates that the annual procurement spend is £85 billion. However, the current funding gap for local councils is £13.2 billion, and the LGA estimates that the gap will grow by £2.6 billion per year.
To plug the gap, councillors will need to focus on the supply chain, optimising every step in local procurement. Sustainability, social value, and innovation will play an increasingly important role in the process.
Suppliers Must Understand Local Authority Structures
The situation is perfect for SMEs that already work within their local communities and have at least one or two sustainability measures in place. Their size, agility, and innovation count very much in their favour. However, to get a proper foothold in government procurement, they need to understand how procurement works at the local level.
Roles and Responsibilities in Local Public Sector Procurement
One of a councillor’s primary roles is to keep procurement processes as simple as possible. Proper delegation is important, so councillors must take care when appointing a senior manager to a particular project.
Senior managers oversee the entire procurement exercise, but they don’t work on their own. They’re supported by a board of senior managers from other relevant departments, including legal, finance, and HR.
There is also a project manager who oversees the project’s daily activities, keeping the team on track to deliver the desired outcomes.
Local Government Procurement Platforms
Procurement platforms are essential to help suppliers and public sector buyers find the perfect partners to successfully deliver contracts. They’ve gone way beyond simple tender notifications alerts to provide an array of services that help both parties optimise the procurement process, from analytics to business advice and free resources.
Supply2Gov even provides Cyber Essentials and Cyber Essentials Plus certification. They’re the foundation in cyber security that the government requires from all businesses that want to compete in the local public procurement market.
There are government platforms, government backed platforms, and platforms from independent parties, like S2G.
UK government portals include:
- Contracts Finder: public sector contracts over £12,000
- Find a Tender: public sector contracts over £139,688
- Sell2Wales
- eTendersNI
- Public Contracts Scotland
Currently, the government is developing a Central Digital Platform, which effectively replaces Contracts Finder and Find a Tender, for a more cohesive service.
Independent procurement platforms include:
- Supply2Gov
- Delta eSourcing
- Defence Contracts International (DCI)
- BiP Solutions partners
Crown Commercial Service is the official government-backed procurement platform that includes traditional digital tendering and framework agreements.
Typically, registration for suppliers is free. Once registered, suppliers create a profile with their details, emphasising their skills and the types of contracts they’re looking for, for example, niche industry services, location, and contract value. Public sector buyers can search the platforms for suitable suppliers and publish contract notices to help suppliers find them.
How to Find Suitable Contract Opportunities
If you want to win public sector contracts, you must know what to look for. Local councils tender for the same types of projects as the central government, just on a smaller scale. Suppliers can find tenders on procurement platforms by using relevant keywords in their profiles.
For instance, if you provide social care services or products, you can use search terms like “in-home elderly care.”
If you’re interested in the education sector, you can use terms like “cleaning services for schools.”
Additional services in local government procurement include:
- Waste management: household and commercial
- Transportation: road maintenance to traffic management
- Environmental management: heating and plumbing
- IT: hardware, software, and support
- Construction: building construction and infrastructure repairs
- Utilities management: water, gas, and electricity
- Professional services: legal and financial
- Furniture: offices and public spaces
- Catering: schools and government events
Remember to use related keywords; for example, office furniture includes “office desks,” “boardroom chairs,” “ergonomic office chairs,” etc.
If you specialise in a particular sector, it’s a good idea to register on sector-specific portals. DCI publishes defence-related contacts, HCI publishes contracts related to HR services, and NHS Supply Chain covers healthcare services, products, and works.
Sector-specific portals increase your chances of winning niche contracts, so register on general public procurement portals, but find platforms that cater more closely to your products, services, or works to increase your opportunities.
How to Respond to Local Government’s Invitations to Tender (ITTs)
ITTs demonstrate suppliers’ growing reputation for quality and reliability. This is because government bodies have gone to the trouble of researching the supplier pool and identified a handful of businesses that have the potential to deliver the contract successfully.
Given the advance vote of confidence, you really don’t want to make a mess of your response. Here are four top tips to keep your business ahead of the pack.
1) Read the tender pack
ITTs come with a tender pack that tells you how to structure your response. It includes key dates, terms and conditions, specs, pricing, evaluation criteria, and the required structure or format of the response. This includes font size, paragraph spacing, numbering, word count, etc.
2) Get your supporting evidence in order
You will be asked to provide supporting evidence to back up claims and prove you meet certain criteria. For example, case studies prove your capability and quality. Certificates prove you meet procurement requirements, like Cyber Essentials certification or industry association membership.
3) Emphasise sustainability and social value initiatives
The Procurement Act 2023 has made social value mandatory with a minimum 10% weighting. Sustainability is also growing in importance thanks to the government’s Net Zero goals.
You can boost your overall value by incorporating sustainability practices into your daily business operations, like waste and water management, energy-efficient power use, and a reduce-reuse-recycle culture.
Small businesses are well positioned to capitalise on social value. They’re in touch with what local communities need and can easily partner with NPOs and other charitable organisations to address ongoing challenges.
Social value examples
There are three parts to social value, economic, environmental, and social. Focus on the elements appropriate to your business. For example, if you work in the education sector, you could include stationery drives so kids from disadvantaged areas have the stationery they need, like pens, pencils, scissors, books, etc.
You can be involved in these initiatives as a matter of course. Local authorities usually specify a direction for your social value project to take. It might differ from your current activities, so ensure you leave enough resources to meet official social value targets.
4) Submit before the deadline
It’s common sense, yes? However, it turns out that missing deadlines is one of the most common mistakes suppliers make when bidding on government contracts. Late submissions smack of unprofessionalism and a tardy attitude makes a very bad impression. Late submissions are often disqualified immediately and contracting authorities are unlikely to cut you some slack and extend your deadline, unless you have a very compelling reason.
Best to get your tender in at least a few days before the deadline, so you can make corrections based on feedback. Don’t test your buyer on this.
Public Procurement: It’s Not Just About Contracts
The UK government is pushing to change the nature of procurement. Instead of a straight transaction, it wants collaboration, partnerships, and long-term relationships. This is partly to create an environment that encourages participation in local government procurement, especially for SMEs that have the potential to boost local economies, drive innovation, and help reach net zero.
Procurement platforms play an important role in building supplier/buyer relationships. For example, providing open channels of communication for all stakeholders to participate in discussions, collaborations, and contract specs, definitions, and evaluation criteria.
Engage with as many buyers as possible, not just when you’re submitting a bid. Industry events, like expos and conferences, are great for early market engagement and establishing relationships that will stand you in good stead for future tender opportunities. This also benefits public procurement as a whole and has positive knock-on effects in local communities.
Register on Supply2Gov now and get local tender alerts for your region and business type, as well as expert advice about incorporating social value in your bid submissions.