Empowering recruiting councils to prioritise value and sustainability in tender evaluations
Following the UK’s departure from the EU, Public Sector Procurement is changing. The government has introduced the Procurement Act 2023, which is set to take effect on 28 October 2024.
These changes also come in response to challenges highlighted by the COVID -19 pandemic, notably the need for more effective and equitable procurement practices. For HR professionals, understanding these changes is key to effectively navigating future recruitment and contracting processes.
The current procurement process for the Public Sector prioritises procedural compliance, which may at times overlook true value for money and transparency. The new Act focuses on redefining terminology and aims to develop a simpler system that will provide contracting authorities more flexibility to use their own discretion.
A significant part of this shift in terminology is the move from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender). This change reflects a broader understanding of ‘value’, incorporating not just cost but also non-monetary benefits such as social value. This approach will empower contracting organisations to make decisions with greater flexibility, allowing them to establish broader criteria for evaluating tenders to select the overall best value option. It is hoped that these changes will also open up more opportunities for smaller businesses to provide services.
This is a promising development for local government as it will enable councils to assess tenders on what will truly add the most value to their organisation. Social and environmental impacts are important considerations in today’s society and the value that these can hold should not be underestimated.
Many organisations are already considering their social and environmental responsibility and impact, and by including greater importance of these in tenders, organisations will be motivated to do more to improve in these areas. This may also increase the emphasis on assessing and documenting non-monetary benefits to measure and demonstrate additional value, such as using frameworks like the Themes, Outcomes, and Measures (TOMs).
As a local authority-owned business, Opus has long embraced the philosophy that underpins the new Procurement Act. As well as achieving long-term cost savings, we are committed to supporting the broader communities our councils serve.
In the West Midlands, as the delivery partner for the WMTemps framework, we have engaged in numerous activities to support individuals into work and raise the profile of public sector career pathways. This includes collaborating with schools, colleges, and universities to deliver career talks and mock interview sessions, attending career fairs across the region, and working with local employment services.
The Procurement Act 2023 represents a shift towards more value-driven, flexible procurement processes that consider the broader impact of public spending. The new landscape presents an opportunity for organisations to redefine their value proposition to the public sector. By highlighting their role in delivering social value and community benefits, alongside cost savings, they can align themselves with the evolving priorities of public sector procurement.
Sam Goody, Associate Director, Commercial Services, Opus People Solutions
