If one good thing came out of the COVID-19 pandemic, it was the realisation that emergency procurement services have been neglected in the regulations and that the process needed an overhaul to speed it up and keep it fair.
This presents suppliers who are on the ball with a unique opportunity to win public contracts relatively easily, without the intense competition of traditional UK public procurement. Being tender-ready or virtually tender-ready gives suppliers (large or small) an advantage when emergency calls go out.
Let’s look deeper into emergency procurement procedures.
What Is Emergency Public Procurement?
Emergency procurement is necessary when a sudden unforeseen event occurs that results in injury, loss of life, or critical damage to property or infrastructure.
Emergencies can be natural disasters, including floods, earthquakes, and major storms, like cyclones. Emergencies can also be manmade, including ground contamination (toxic waste), widespread illness, and critical infrastructure failure
There are political emergencies, including war, coup, or civil insurrection, as well as security emergencies like terrorist attacks and major crime.
Emergency procurement processes fall broadly into three categories:
- Framework agreements: Contracting authorities have access to a pool of pre-approved (tender-ready) suppliers.
- Dynamic purchasing systems (DPS): Similar to frameworks, but new suppliers are added, perhaps with updated skills or products that are better suited to the emergency.
- Direct awards: Public sector buyers can award contracts directly, without any competition, provided the suppliers are the only ones who can deliver the contract, or proprietary services or products are required.
Procedure for Public Procurement in Emergency Situations
Now, we’re going to look more closely at the different public procurement processes in emergency situations.
Call off from an existing framework agreement or dynamic purchasing system.
- Suppliers’ goods, services, or works must be within the scope of the framework agreement or DPS.
- The terms must be sufficiently suitable to avoid significant changes.
- DPS contracts must be awarded as usual; i.e., by mini-competition, and the window for bid submissions is 10 days.
Call for competition using a standard procedure with accelerated timescales.
- Timescales for open, restrictive, and competitive procedures with negotiation can be reduced to 15 days for bid submission with a 10-day standstill period.
- The Light Touch Regime can be used for specific health and social care services.
Extending or modifying a contract during its term
- Contract modifications are allowed in circumstances which a diligent contracting authority couldn’t have predicted, provided the overall nature of the contract remains the same.
- The estimated value of the price increase can’t be more than 50% of the original value.
- Contracting authorities must provide written justification to prove that the contract modification was a direct result of the event.
- Award criteria can only be modified to meet the emergency conditions.
Direct contract award due to the absence of competition or protection of exclusive rights
- A single supplier is chosen when there are no alternatives available (technical reasons) or the protection of exclusive rights is at stake.
- Central and local authorities must provide written justification to validate their decision.
Direct contract award due to extreme urgency under PCR 32(2)(c)
- The events that caused the emergency must be unforeseeable and not the result of some action or inaction on the part of the contracting authority.
- Written justification for the award decision is required.
- Suppliers must deliver only what is necessary in terms of the goods, works, or services and the contract’s duration.
- Contracting authorities must react to a current emergency and not plan a response to a future situation of extreme urgency.
The Legal Framework: Laws of Procurement
The Public Contracts Regulations 2015 (PCR 2015) regulated much of the above information. However, it remains largely unchanged in the Procurement Act 2023, along with the provisions of secondary legislation. , which also refers to direct award procedures.
There are two sections in the Procurement Act or new regime which can be applied to emergencies:
Section 41: Direct award in special cases.
Section 41 states a direct award in special cases can be made only in situations when it is “strictly necessary for reasons of extreme and unavoidable urgency.”
Section 42: Direct award to protect human, animal, or plant life or health; or to protect public order or safety.
According to procurement regulations, this applies to medical services, supplies, and equipment, but it can also extend to cover circumstances where a Minister of the Crown “considers it necessary,” provided it relates to the abovementioned protections.
Transparency Requirements
Transparency requirements under the Procurement Act 2023 are very different from those under the Public Contracts Regulations. That’s because transparency is now a priority in all government actions, especially public procurement spending, and even more especially public procurement spending during an emergency.
In the Procurement Act 2023, transparency is covered in:
Section 44: Transparency notices
Contracting authorities are required to publish a transparency notice before a direct award. The notice must state the contracting authority’s intention to award a direct contract. It also includes details regarding the contract and justification for the decision to award the contract directly.
Emergency Buying Power for Public Bodies
The upshot for government buyers is that they have a fair amount of discretion when it comes to awarding contracts, including the procedure used (e.g., framework). Their buying power increases – but it’s only temporary. As soon as the emergency is over, the standard procurement regulations resume.
Supplier Opportunities: How to Identify and Win Emergency Contracts
You can find emergency contracts on the government’s procurement platforms: Find a Tender and Contracts Finder.
Contracts Finder is a portal for low-value contracts (below public procurement thresholds but worth more than £12,000).
It’s worth noting that not all emergency public sector tenders are high-value, so it’s a good idea to keep your eyes open. However, contracting authorities aren’t required by procurement regulations to publish low-value tender alerts on Contracts Finder, which is why it’s essential to register on other platforms, like Supply2Gov, to extend your catchment area.
Find a Tender Service (FTS) is a portal for high-value public procurement tenders (more than £139,688). Contracting authorities must publish tender notices above the threshold on the platform, so, provided your profile on the central digital platform is set up correctly, you’ll receive alerts for emergency contracts.
Supply2Gov collates public sector tenders regardless of value, so when you register on our central digital platform, you’ll receive alerts for emergency tenders as soon as they are published.
Tender-ready suppliers
What is a tender-ready supplier? It’s simple; a tender-ready supplier is one who has all the procurement documents government department buyers require ready to go – with a bit of customisation.
Stored documents and templates that meet the requirements of the new procurement regime can cut tender response time for emergency situations. For example, up-to-date financial statements to prove financial stability, mandatory certifications and accreditations, and proof of experience.
When it comes to certifications and accreditations, you should have a few ISO certifications under your belt (e.g., quality management, health and safety management). Cyber Essentials is essential for cyber security. It’s actually mandatory under the new rules, but it’s a good idea to have additional certifications that are in line with the UK GDPR (UK General Data Protection Regulations).
It’s also recommended to have proof of your essential policies, including (but definitely not limited to):
- Social Value
- Modern Slavery
- Quality Management System/Policy Statement
- Equal Opportunities
- Information Security and GDPR
- National Minimum Wage/Living Wage
Supply2Gov delivers relevant opportunities
Supply2Gov’s platform enables you to select filters that narrow your search parameters and deliver highly relevant (niche) tender alerts, including emergency alerts. The platform can provide you with tender alerts that match your needs, enabling you to carve out a suitable space in the UK public procurement sector.
Why Emergency Procurement Is a Smart Entry Point for SMEs
No one likes to profit from an emergency, but truth be told, emergencies are a relatively easy win for SMEs looking to get into public sector procurement. It’s easier and simpler for SMEs to get tender-ready. SMEs tend to be more flexible than larger organisations, so they can quickly customise and adapt to meet emergency contract criteria.
Stepping into the breach is also a great way to meet and impress contracting authorities. The initial circumstances might not be great, but overcoming challenges together is great for bonding and building relationships with government department buyers.
Take the first steps to tender readiness and register for tailored alerts on Supply2Gov’s platform. Our database of public sector contracts is the largest in the UK and the Republic of Ireland, presenting you with bidding opportunities that are perfect for your business.
All you have to do is filter your profile down to your niche services and you can begin to track emergency procurement tenders published by public bodies.