Public sector procurement has changed in the UK due to COVID-19 and the consequences of effective practices in the short- term have never been greater. The long-term impact of COVID-19 on procurement is yet to be fully realised, but the growing popularity of Dynamic Purchasing Systems (DPS) signals a clear direction for the public sector.
Frameworks versus DPS
Traditionally, most councils spend through a framework. This is an overarching agreement that sets out the terms of trade, such as price, quality and quantity, under which individual contracts can be made throughout an agreed period. Once the umbrella agreement has been awarded through a framework, there is no opportunity for new suppliers to join until the next agreement is awarded, with this process taking place at a maximum of every four years.
“Flexible procurement is important in a COVID landscape but so is the compliancy of suppliers. There have been many high-profile stories that detail borderline exploitative procurement for essential equipment, as enterprising organisations have successfully profiteered from the pandemic via contracts awarded through PPN.”
Dynamic Purchasing Systems (DPS) overcome these barriers, enabling flexible alternatives to frameworks which impose no limit on supplier numbers and provide an ‘open system’ of procurement. With no time restrictions imposed by the regulations for suppliers to apply, DPSs offer buying organisations maximum flexibility to select from a highly competitive supply base.
Procurement problems
COVID-19 has caused unexpected spikes in demand for very specific circumstances that local authorities may have never considered before. For example, sourcing PPE in a global market, managing tactical IT needs to support flexible working, handling higher quantities of waste with a reduced workforce. Under traditional frameworks, compliant procurement simply may not have happened in a timely manner during lockdown.
The UK Government supported this problem by issuing Public Procurement Policy Notes (PPN) for quick essential items. Throughout this period, public sector organisations have had the flexibility to make tactical purchasing decisions under a (PPN), making contract awards without the traditional procurement process.
Whilst the PPN has now expired and had been used effectively by many local authorities throughout the COVID-19 pandemic, there is thought being given to how increased flexibility can be provided to the public sector moving forward. It will be interesting to see post-Brexit how the UK moves from the EU landscape to a UK led one.
Ensuring compliancy
Flexible procurement is important in a COVID landscape, but so is the compliancy of suppliers. There have been many high-profile stories that detail borderline exploitative procurement for essential equipment, as enterprising organisations have successfully profiteered from the pandemic via contracts awarded through PPN.
Local authorities are not to be criticised for all their responses, as the procurement landscape quickly became difficult to negotiate as the gravity of the pandemic became apparent. This does, however, highlight the need for flexible and compliant solutions.
Supplier access to a DPS is not automatic, and organisations are still subject to scrutiny. Although checks are less time-intensive than traditional procurement frameworks, they provide the necessary interrogation to ensure public money is spent appropriately.
