Procurement Reform - our response to shaping the NPPS

The upcoming National Procurement Policy Statement (NPPS) will shape the future of procurement projects by ensuring they align with the Government's strategic priorities. It’s set to be a powerful tool, as it’ll be mandated when the new Procurement Act comes into force in February. Last month we submitted our response to the Government’s consultation ahead of the NPPS…but what were our key messages? We sat down with Jenna Hicken, our Director of Operations to understand more. 

You can view Cabinet Office’s original consultation here: National Procurement Policy Statement stakeholder survey - GOV.UK Firstly, what does the Government mean by “mission-driven procurement”? And, what are they trying to understand through the consultation?

Mission-driven procurement will be at the heart of the new NPPS. It’s their way of keeping us focused on the strategic priorities set out by the new Labour Government. These missions include:

• kickstarting economic growth,
• making Britain a clean energy superpower,
• reducing crime,
• breaking down barriers to opportunity and,
• fixing the NHS.

Contracting authorities and the wider public sector will play a big role in how far Government can go in achieving these. And so, they’ll use the NPPS to keep these missions central to public procurement strategies. Through the consultation they’re asking stakeholders how we can achieve better value for money, better social value outcomes, better collaboration, and better innovation across the board. It’s an important conversation, and I’m glad we can be a part of it. Their first question focused on maximising value-for-money, how does SEC think mission-driven procurement can support this? We need to ensure that procurement strategy is driven from the top, and across all areas of our organisations. A real culture change is needed so that we truly collaborate and keep our end users in mind throughout the process. Value for money can be maximised by focusing on your overall purpose. It’ll be supported in five key areas:

1. Strategic alignment – embrace a procurement strategy that aligns with government priorities and focuses on driving sustainability, social value and innovation through everything we do. This will contribute to long-term economic growth and build social equity.
2. Enhanced efficiency – encourage innovative solutions and learn from each other’s best practice. This will help streamline processes, reduce costs and improve service quality through digital technologies.
3. Social value – prioritise contracts that deliver real social benefits. This ensures public funds have a positive social impact, by creating local jobs and supporting small businesses.
4. Market shaping – work with the market to stimulate demand for sustainable products and services. Often suppliers have many of the answers, and we need to work with them to drive innovation and reduce our environmental impact.
5. Risk management - mitigate risks associated with short-term cost cutting, and instead focus on long-term outcomes and resilience.

You’ve mentioned social value already, but it was another key question in the consultation. How can we deliver better social value outcomes in procurement? We need to push for more impact-focused social value. We should move away from monetised value assessments of our impact, and move to meaningful metric-driven assessments on commitments that drive real change. One of the drawbacks to an NPPS, is that local need is sometimes overshadowed by national objectives. To really get it right we must:

• Set clear social value objectives which define what we want to achieve and align with the broader government missions and policy goals.
• Engage stakeholders early by consulting with local communities and businesses to understand their needs. We should use this feedback to shape procurement strategies and ensure they address real challenges.
• Support SME and local businesses by designing procurement processes that are accessible. And, provide training to help them compete for public contracts.
• Monitor and report on social value to hold suppliers accountable for delivering on their commitments. This includes establishing clear metrics and KPIs to measure your social value outcomes.
• Promote innovation and sustainability by encouraging suppliers to support green technologies and inclusive employment practices.

To achieve all of this we need to collaborate better. How can we work together better to deliver on the government’s missions? Getting collaboration right can help deliver the missions by leveraging our collective expertise, resources, and innovation. To accelerate this we’ve got to:

• Establish clear objectives and shared goals. We’ve got to define common goals that align with the missions of all stakeholders and ensure they’re communicated clearly to all parties. This will foster a sense of shared purpose.
• Create collaborative frameworks and agreements that facilitate joint procurement activities – such as joint ventures, consortia, or public-private partnerships.
• Engage in early and continuous stakeholder involvement to gather input, build trust and ensure their needs are considered.
• Promote capacity building and knowledge sharing to enhance the procurement capabilities of all stakeholders. This can be achieved through workshops, seminars and networks the share best practice and innovative solutions.
• Implement performance metrics and accountability mechanisms. These are important in holding all parties accountable for their contributions and ensuring transparency across the board.
• Foster a culture of trust and cooperation by promoting mutual respect, trust and open communication among all stakeholders. We should also recognise and reward collaborative efforts which are open about what works, and what doesn’t.

Interested in learning more about Procurement Reform? We’re publishing regular news posts on our website. View them here: Latest Updates on UK Procurement Reform – SouthEastConsortium  Alternatively, subscribe to our email newsletters here.