Will 2021 see an end to public procurement?

The UK public procurement process dates back to 1958. The signing of the Treaty of Rome created a market place based on the free movement of goods, people, services and capital.

The fundamental principles of public procurement are transparency and equal treatment. It is therefore heart breaking (as a procurement professional) to see procurement best practice completely ignored in 2020. ​

​The National Audit Office (NAO) published findings of their investigation into procurement during the Covid-19 pandemic. The NAO found new contracts worth £10.5 billion were awarded directly to suppliers WITHOUT a competitive tender process. 
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Indeed a High Court judge ruled the UK Government acted unlawfully in failing to publish details of contracts awarded without competition for goods and services such as PPE. 

The future of public procurement
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​The UK officially left the EU on the 31st January 2020. The transition period ended on the 31st December 2020. On January 1st 2021 the Government ceased publishing tender notices on TED (some would argue this was already the case) and started to publish them on the Gov.Uk website instead.

​However, given some buyers still refer to the SQ as the PQQ (this change happened in 2016) don't be surprised if public sector organisations continue to publish tender notices on TED. Some habits are hard to break.

Further public procurement changes are on the horizon. Sir Simon Stevens, the CEO of the National Health Service has led a campaign to revoke Lansley's competition rules, introduced in the Health and Social Care Act 2012. This will put an end to commissioners tendering healthcare services. 

​​In 2021 the UK government is expected to enter into international agreements with the EU and other countries. ​The governments legal department will also draft new UK procurement legislation. Will the principles of transparency and fair treatment remain? Will there be a better strategy for Small and Medium Enterprises (SME's) than those previously promised by the UK Government. Will there be a requirement for fair and open competition at all? 

​​If you are hoping for a radical change in the procurement law and public tendering processes in 2021, a move to simple bid proposals and beauty parades, you may be disappointed. The Cabinet Office's Commercial Department will be consulted and asked to input into the procurement legislation drafts. This process will take time, therefore the existing procurement legislation may remain in place for some time.  

The requirement to compete in a sealed bid tender process and prove value for money, will hopefully be required for public sector contracts in the future. With British bids from British companies evaluated alongside EU company bids, as they are today. 

Will lessons be learnt? 
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I, like many of my procurement colleagues (who uphold the values of the procurement professional to be ethical and above all types of bribery and corruption) will be interested to read the findings of any enquiry into the awarding of contracts without competition and in some cases, adequate due diligence.

​We hope that due consideration is given by those in positions of power on the new ways the public sector will use the public purse on goods, services and works in the future.

​About the Author

​Naomi Clews is an independent procurement consultant with over 25 years professional procurement and supply chain experience, knowledge and skills across multiple industries and sectors. Naomi is passionate about promoting procurement best practice and shaping the next generation of procurement professionals.