Public sector procurement in itself is always a challenge. There are generally several different requirements to balance at the same time in a way that projects in the private sector don’t necessarily experience, simply due to the nature and responsibility of using public money and delivering on several fronts at once.
In this article, we look at some of the current major public sector procurement challenges faced by public bodies and how we can help you to overcome them.
Jump to:
● Dealing with tight financial constraints in procurement
● Justifying the value of procurement
● Balancing procurement innovation and proven results
● Keeping pace with current public sector procurement rules
● Achieving sustainability goals with procurement
● How Procurement Hub can help with your challenges
1. Dealing with tight financial constraints in procurement
It’s no secret that public funds are extremely tight currently, which can lead to the main focus of public sector procurement activities being on the financial side of things and bringing in a project at the lowest possible cost. However, public bodies also know that using the suppliers and contractors offering the lowest quotes can certainly be a false economy if the quality of work, goods or services delivered are not at the required standard.
Financial accountability for public sector procurement is absolutely important, but cost-cutting measures taken when evaluating and awarding contracts to suppliers can’t be at the expense of the project delivery and achieving high-quality outcomes.
The procurement process itself can end up being costly if it is run in an inefficient manner, and this can also have negative knock-on consequences for project timelines and final results. Getting the right procurement strategy in place for the project in hand, and ensuring that necessary support is there to make the process both efficient and effective, can make a valuable contribution to keeping costs down and setting up the wider project for success.
2. Justifying the value of procurement
With the current financial climate in the public sector, public bodies are understandably asked to justify all aspects of their project, including the procurement process.
Upholding the driving principles such as fairness, value for money, social value, community impact, sustainability and innovation (and providing evidence of these being part of procurement) can feel like a huge challenge with pressures coming from all sides.
Traditionally, it’s not uncommon for procurement awards to be open to challenges from parties that missed out on the contract. Ensuring that your procurement process is transparent will help to minimise the chances of this happening and the negative consequences if it does.
The good news is that procuring for public sector projects with flexible frameworks can deliver much more agility than some other types of procurement processes and help public bodies achieve compliant, consistent, transparent and efficient procurement processes and outcomes.
View our current public sector procurement solutions.
3. Balancing procurement innovation and proven results
Embracing suppliers and a procurement process with an innovative approach is an important part of public sector procurement, driving things forward and finding new solutions that can help deliver better outcomes and balance the budget. However, with lots at stake, it can be a real temptation for public bodies to approach procurement in ways that have proven successful in the past rather than take a chance on something new.
At Procurement Hub, we believe that balance is key to success when it comes to innovative new approaches and tried and tested methods. Using a flexible framework for procurement that has room for all of these aspects can help ensure that your project is in the capable hands of qualified and proven suppliers but can still embrace innovation as part of the process; the best of both worlds.
4. Keeping pace with current public sector procurement rules
Anyone familiar with public sector procurement will know that regulations and requirements change frequently, with public bodies needing to be on top of all of this evolution to ensure a compliant procurement process and project. The prime example of this will be the introduction of entirely new legislation for the public sector procurement professionals when the Procurement Act 2023, finally goes live on February 24th 2025.
Another major challenge currently for public sector construction procurement is taking into account all of the updates and changes from the Building Safety Act 2022, which continue to roll out during 2024 and beyond. Coupled with changes to planning permission in certain development types, keeping pace with current public sector procurement rules and how things relate to specific projects isn’t always straightforward.
At Procurement Hub, our range of solutions are designed to remove as much of the time and administrative burden of this from the procurement process as possible, with compliance and other suitability assessments already done on the suppliers that can bid for contracts.
5. Achieving sustainability goals with procurement
A significant aspect of public sector procurement involves taking into account the impact of the entire project, throughout its entire lifecycle, on the environment and the local community. Incorporating sustainability as yet another element to consider when assessing potential suppliers can be a real challenge for already-stretched public body procurement teams.
It’s a common misconception that sustainable procurement relates only to environmental impact. While this is certainly a part of it, true sustainability also takes into account ethical and social considerations, as well as local and wider economic factors. And the procurement process needs to look at these things not just during project delivery stages, but for the entire lifetime of the project and its long-term impact on the planet, the community, the nation and even globally.
At Procurement Hub, we can help ensure that your procurement strategy includes sustainability at its heart, empowering public bodies to develop and implement responsible procurement processes that don’t compromise on the outcomes.
Find out more about how Procurement Hub can help you with sustainable procurement.
How Procurement Hub can help with your challenges
Procurement Hub is part of Places for People, so we understand the challenges of public sector projects when it comes to planning and delivering projects that make a real positive difference to communities.
Our CIPS qualified team is highly experienced in developing public sector procurement solutions that incorporate the many plates that public bodies have to spin to choose the right suppliers and move forward with confidence.
Our range of frameworks and DPS solutions can be tailored to your specific needs and we offer all of the support you need with your procurement strategy, helping you to deliver efficiently and successfully.
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