14 minute read
Spark: The Technology Innovation Marketplace
We revisit the advice and guidance of Rob Whitehead, category lead for Technology Products and Services at the Crown Commercial Service, in which he discusses how Spark will work, how it has been designed, as well as its desired outcomes
For many years, there has been a strange disconnect which has made it difficult for organisations in the public sector to bring on board technologies which are truly cutting edge. Let’s be clear - that’s not because innovation was a dirty word in the public sector. Far from it: the UK government has been very active in funding product development which makes the UK a world leader when it comes to emerging technologies.
But what we have not been so good at is providing a route to market for those customers within the public sector who wanted to access such technology once the products were developed. Spark: The Technology Innovation Marketplace was launched in April 2019 to address exactly this issue - identified through conversations we, Crown Commercial Service (CCS), held with our stakeholders. CCS helps organisations across the entire public sector get the best deals on the goods and services they need to run their organisations and we have been at the heart of Spark’s development.
We want our customers to have access to the latest products and services, and for innovative tech companies to work with the government and the wider public sector. Spark does all of this as part of a suite of wider government initiatives to bring cutting edge technology into the public sector: it compliments the GDS government technology innovation strategy, the GovTech Catalyst challenge and other similar projects.
It was designed to encourage new, but proven technologies such as artificial intelligence (AI); wearable tech; and the internet of things - where everyday objects can send and receive data.
Spark will enable true innovators, who have developed products through catalysts or catapults, to commercially exploit them by opening them up the entire public sector - a market worth approximately £14 billion. Spark provides a flexible yet compliant route to market which adapts and scales as capabilities change.
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So how does it work?
First of all, it’s a Dynamic Purchasing System (DPS) which allows it to remain continually open to new suppliers. This has several advantages, including: suppliers can apply to be part of the marketplace at any time; an unlimited number of suppliers can join; and far less work is required up front by suppliers to join a DPS than would be the case with a framework agreement as suppliers only need answer selection questions.
The DPS has an inbuilt matrix to assist customers and suppliers match capabilities to needs, and all this is married to a proactive programme of customer and supplier support to make using it as straightforward as possible.
Totally market-led, Spark developed from work within CCS’s Technology Products and Services category, and has been designed with customers and suppliers in mind. By speaking with customers we identified a need for a more open, flexible approach to our emerging technology suppliers. They told us they wanted to trial technologies in a small, agile manner with a compliant route to market once they were ready to scale. Once they get easier access to the public sector market, successful Spark suppliers may then ‘graduate’ on to other frameworks. Ultimately, citizens benefit through the step changes in service provision that such technologies can deliver.
But suppliers won’t be able to sell just any new tech product or service. The core ‘backbone’ of the DPS will be a filter system so customers can search for products within defined fields that have been developed in partnership with customer input.
The emerging technologies we’ve selected are those predicted to have the largest impact over the next five years: the internet of things; AI and automation; simulated and enhanced environments; engineering and materials science; data; wearables; transport, and security. There are further sub-categories within each field and products outside these cannot be offered within the DPS.
In order to gain a place suppliers also need to provide a contract example, corroborated by a customer, to demonstrate their capabilities and show how their products meet our definition of innovation by detailing its novelty, usefulness for the customer, and impact. The customer must also have access to any relevant pre-existing intellectual property, either through ownership or licencing.
As with all CCS commercial agreements, customers remain in control throughout the process. We recommend pre-market engagement with all potential suppliers - asking how they can solve their problem and allowing them to innovate.
Spark’s simple DPS sign-up and buying features encourage public sector customers to use new suppliers and adopt their innovations. The sign up process is quick and easy for customers. They need only to register as a buyer by completing their contact details, confirming acceptance of the terms and conditions and clicking ‘register’. By completing this they are submitting an access request to CCS for approval. This means that from the homepage customers can reach the page where they apply their filters to shortlist suppliers for their further competition in no more than four steps. That’s an innovation.
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We’re confident customers will want to use it, not just because it is so easy to use, but because we intend to attract the best new technology innovators through an open and supplier-friendly agreement. Spark will remove the barriers which have prevented the true public sector exploitation of innovation, by taking a more flexible, open approach than may have been the case with traditional frameworks.
For example, the supplier application process for Spark is very simple and quick; suppliers should not need a bid writer to apply for them.
If it works as we hope, we’ll see a £20 million spend in the first year with 70 per cent of that spend being with SMEs. We should also see the seven suppliers we had at launch growing to 100.
But we see Spark as just a starting point - our first step on a greater journey which will enable CCS to onboard innovative technologies for our customers at speed, and improve their approach to exploiting new technology.
Spark is the first time we have targeted an emerging market and so also the first use of a DPS for this market. Previously, DPSs have been used for established supplier markets only. The approach we are taking is an innovation in itself. CCS will learn from the process, good and bad, and we plan to iterate and improve the agreement.
Artificial Intelligence
A survey of local authorities earlier this year found that councils across the country are expecting to save £195 million this year by introducing artificial intelligence technology techniques.
Councils across the UK expect to save an average of £300,000 in the next year through greater use of AI and another £180,000, on average, through the deployment of self-learning chatbots. In fact, one in six local authorities anticipate savings between £750,000 and £1 million purely through the introduction of AI technology. In total, the savings amount to savings of £195 million across unitary, borough, district and county councils in the UK.
Agile Datum found that financial savings, faster resolution of enquiries, freeing up staff to focus on citizen engagement and more accurate processing were the key reasons behind the trend. Reducing call volumes (86 per cent), financial savings (80 per cent) and improving customer services (64 per cent) were the main reasons cited for introducing chatbots. Agile Datum says that chatbots have the potential to introduce 15 per cent extra capacity and AI another 35 per cent capacity into every local government department.
To help deliver these new technologies, most councils expect to have a chatbot strategy (90 per cent) and artificial intelligence strategy (91 per cent) in place within 12-18 months, with over half expecting to have these strategies in place within six months. Nearly a quarter of councils (24 per cent) already have an AI strategy in place.
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Artificial intelligence DPS
The new Artificial Intelligence (AI) Dynamic Purchasing System, launched in September 2020, offers public sector customers a direct route to AI services in an emerging market. By working collaboratively alongside The Office of Artificial Intelligence, CCS is pleased to announce that our new Artificial Intelligence DPS is now live.
Across many organisations within the public sector, customers are looking to embrace change and future-proof their business by implementing AI technologies. These emerging technologies offer a number of benefits to customers such as helping to better manage and use data, make public services more accessible, and improve diagnosis in healthcare.
If your organisation is new to AI, you will be able to buy services through a discovery phase, to get an understanding of how you could benefit from AI could benefit you organisation. If you already have experience of using AI, you can buy licensing, customisation and support directly from suppliers. If you’re looking for both of those things, you will have access to end-to-end partnerships.
Ethical development of AI and true innovation across the public sector has also been taken into account when developing this DPS, providing opportunities to accelerate the adoption of new technologies within government, and improve services for citizens throughout the UK.
This DPS provides an opportunity for suppliers, including startups and SMEs to look at what a department wants in an AI solution, find out how they can meet those requirements, and join the DPS throughout the agreement duration. This will be of particular benefit to the health sector, where an AI technology needs to meet regulatory approvals such as clinical safety and efficacy data towards a CE marking. Health and care bodies can also ask their approved suppliers to join this DPS.
Patrick Nolan, CCS Technology Director, said: “Artificial Intelligence offers exciting opportunities to modernise public services, raise productivity and increase efficiency. This will ultimately save the taxpayer money, help to build a skilled workforce and create better public services. This new agreement will enable the public sector to access the latest in AI technology, including access to technology for medical screening and diagnosis, chatbots to drive up the quality of customer experience, and virtual assistants.”
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Automation services
Back in March, a new procurement vehicle opened for buyers and suppliers of cutting-edge technology services - the innovative new Automation Marketplace DPS. Through the DPS, public bodies can now access the latest intelligent automation services – enabling them to benefit from a range of innovative technology solutions including business process optimisation, desktop automation, analytics, and much more.
It means that suppliers of all sizes can apply to offer their innovative solutions to public sector customers and customers can begin to buy services. The agreement includes a stipulation that suppliers offering solutions that involve the use of Artificial Intelligence must declare that they understand and will adhere to a set of ethical guidelines on the use of AI in the public sector.
Created in partnership with the Cabinet Office to replace its current Robotic Process Automation contract, which expires in August 2020, the agreement has also been designed as a Dynamic Purchasing System, meaning suppliers can join at any point during its lifetime.
Niall Quinn, CCS Technology Director, said: “Automation is becoming increasingly important to government and by asking suppliers to abide by the AI ethical principles it will assist public bodies and those delivering public-facing services to easily identify AI products and services that meet their ethical requirements.”
FURTHER INFORMATION:
www.crowncommercial.gov.uk/agreements/RM6094
New public procurement measures
Under new measures, businesses seeking to win government work must set out how they will also deliver social value priorities.
Government departments will use the social value model to assess and score suppliers on the wider positive benefits they bring by delivering the contract, meaning that value for money for the taxpayer can be maximised while also building a more resilient and diverse supplier base.
The social value model which departments will assess contracts on includes: supporting coronavirus recovery; tackling economic inequality, including creating new businesses, jobs and skills, as well as increasing supply chain resilience; fighting climate change and reducing waste; and driving equal opportunity, including reducing the disability employment gap and tackling workforce inequality Improving health and well-being and community integration.
The new approach will apply tests that all bidders, irrespective of their size and type, will be capable of meeting and therefore further levels the playing field for the UK’s small businesses, start-ups and voluntary and community sector organisations and social enterprises.
The new measures will come into effect on 1 January 2021. Cabinet Office Minister Julia Lopez said: “Government has tremendous buying power, spending £49 billion each year on contracts for vital public services. Value to the taxpayer should lie at the heart of our procurement decisions.
“Too often, however, ‘value’ has been narrowly defined by price without taking into account other important factors such as the number of local jobs or apprenticeships a contractor will provide, the care they show the environment in their business practices or the number of SMEs involved in their wider supply chain.
“We want to see a greater variety of companies deliver government contracts, from every corner of our country - not just because that benefits local economies and communities but because it helps diversify our risk, create a more resilient supplier base and deliver some of our critical priorities. If we can use government’s buying power to drive that broader value, the better our chances of levelling up our country and investing in our people as part of our Covid recovery.”
Commercial teams in all government departments will also be expected to complete training courses in implementing the new model and how to ensure the maximum social value is derived from each contract.
Fighting procurement fraud
Councils in England can now access extra advice to help protect public money from fraud during the procurement of goods and services.
The Ministry of Housing, Communities and Local Government has published the Review into risks of fraud and corruption in local government procurement, which sets out practical examples and case studies showcasing how councils can strengthen their processes and implement prevention measures.
Councils in England spend around £55 billion a year on goods, work and services. A survey conducted as part of the review showed 23 per cent of respondents reported fraud and/or corruption in the procurement lifecycle during the 2017 to 2018 financial year.
Local Government Minister Simon Clarke said: “Everyone in public life shares a common duty to protect the interest of taxpayers. Acknowledging and mitigating the risk of fraud and corruption is critical for sound financial management and to ensuring that every pound spent by councils is used to support the communities they serve. This is true especially at a time when councils continue to work hard in the national effort against the coronavirus pandemic. There is no silver bullet, but I would urge all councils across the country to learn lessons from this report and harness the tools it provides to tackle fraud and corruption.”
Peter Fleming, Chairman of the Local Government Association’s Improvement and Innovation Board, said: “This timely report highlights good practice by councils and provides helpful recommendations as they strive to ensure that taxpayers’ money is protected from fraud and spent on vital public services. This is increasingly important during the pandemic and after – none more so than in areas such as PPE and electronics where demand is outstretching supply. This report complements the LGA’s Counter Fraud Hub and we will aim to adapt and implement its recommendations through our sector-led improvement workstreams.”
