Kim Nailor, Pelican Tender Team Manager, highlights important updates to be aware of
National Procurement Policy Statement, NPPS
Over the last few months, the UK Government has focused on revising policies and establishing best practices for public procurement.
Procurement accounts for around a third of all public expenditure, and with the publication of the National Procurement Policy Statement, NPPS, a greater focus is on how this spending can better support the delivery of key priorities such as generating economic growth, and supporting the transition to net zero carbon emissions. The policies within the statement apply to the entire public sector, including central government departments, executive agencies, non-departmental public bodies, local authorities and the NHS.
As a buyer, considering the social, economic and environmental impact of procurement decisions is now more important than ever. Suppliers need to be encouraged to adopt best practices by putting a greater emphasis on social value within notices, and awarding contracts that sufficiently contribute towards helping to deliver the priorities identified within the NPPS. The following guidelines outline some of these best practices:
- Creating new businesses, new jobs and new skills – helping new and/or small businesses to grow; supporting higher economic growth; increasing employment opportunities; extending training opportunities.
- Tackling climate change and reducing waste – contributing to the UK Government’s legally-binding target to reduce greenhouse gas emissions to net zero by 2050: reducing waste, identifying opportunities in sustainable procurement to deliver additional environmental benefits.
- Improving supplier diversity, innovation and resilience – creating a more diverse supply chain to deliver the contract, which will better support start-ups, small and medium-sized businesses (SMEs) and voluntary, community and social enterprises (VCSEs) in doing business on public sector contracts: deliver lower cost and/or higher quality goods and services, and encourage the wider adoption of innovation: contributing to the development of scalable and future-proofed new methods to modernise delivery and increase productivity.
- Skills and capability for procurement – all contracting authorities will now have to put greater scrutiny on their own processes, reviewing their capability and capacity to deliver value for money. There is now an expectation that buyers will benchmark themselves against relevant commercial and procurement operating standards.