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SUPPLY CHAIN Marie-Claude Hemming on procurement
A Revolution in Procurement
Marie-Claude Hemming of CECA explores the Procurement Bill’s potential impact on public sector purchasing
The Procurement Bill’s Second Reading in the House of Lords at the end of the May, signified the start of a revolution in UK public sector purchasing. The Bill, which seeks to capitalise on the UK’s departure from the European Union, offers the opportunity to transform public sector procurement for the long term.
It is the outcome of a lengthy consultation process, to which the Civil Engineering Contractors Association (CECA) – via its member led Procurement Group - developed a substantive response.
CECA represents over 300 firms who together carry out an estimated 70-80 per cent of all civil engineering activity in the UK, in the key sectors of transport, energy, communications, waste and water.
We are pleased to see that a number of our members’ concerns have been reflected in the Bill and we fully support its aims.
In particular we welcome the move from the principle of Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT).
The change to MAT means that social and environmental value can be fully embedded within the procurement process. It also allows a focus on the whole life cost of the asset, rather than simply buying the cheapest product, saving money in the long term.
While MAT is already available to public sector procurers, CECA believes that the move will set the precedent for real change.
We also support the principle that proportionality will be embedded in procurement processes. In particular, this will support SMES as they bid for work.
CECA also welcomes the establishment of a competitive flexible procedure with minimal detailed rules. However, we will continue to advocate, that for our industry, the minimum timescales proposed in the consultation on the participation and submission of final tenders as part of the competitive flexible procedure are very short, and instead they should proportionate to the scale and complexity of what is being procured.
We will also continue to maintain that the open procedure (a one-stage procurement process) is not favoured for complex civil engineering projects. This is because the cost of bidding in this case is extremely high and, as such, the chance of winning is substantially reduced. In our view, the wrong use of open procedure can drive down the quality of bids received.
CECA supports the establishment of a Procurement Review Unit (PRU) in the Cabinet Office. We hope that the new unit will build on the work of the already established Infrastructure Projects Authority and that the process will recognise the challenges of establishing a unit which cuts across all departments.
We also favour the proposal for a supplier registration system and all efforts to reduce bureaucracy in accreditation.
CECA believes that any chosen system should have a sector specific approach, using auto population in an intelligent manner.
We particularly seek clarification as to how the new platform will interact with existing private accreditation bodies, reflect commercial sensitivities and avoid unnecessary delay, costs, and challenges.
In our view, the Bill’s focus must reflect the recommendations of Constructing the Gold Standard, the independent Cabinet Office review of Construction Frameworks, the publication of the Construction Playbook, and the Value Toolkit, all aimed at improving the delivery of construction projects. We also recommend that the public and private sector aligns where appropriate, to maintain a consistent and simplified approach.
Discussions during the Lords Second Reading focused on bringing about much needed culture change in the construction sector and noted the role of the Construction Playbook in delivering this. It is vital that the principles of the Playbook are embedded within the Bill and its associated guidance.
We are keen to ensure that as the Bill makes progress in Parliament, our concerns continue to be reflected in the primary and, most importantly, secondary legislation.
CECA, and its members recognises the importance of regularly engaging with our lawmakers as the Procurement Bill progresses through Parliament so we can transform project delivery for the long term. We hope that the construction industry can join behind us to support collaboration, innovation and ensure a thriving industry and supply chain standing ready to deliver a society fit for the 21st Century.
Marie-Claude
Hemming is an experienced communications and policy professional. Having started her career in public affairs consultancy, she moved to a policy role at the Federation of Small Businesses in 2009, before joining as Industry and Public Affairs Manager and undertaking a variety of roles in the business, before becoming Director of Operations in 2021. Marie-Claude is CECA’s media relations and policy lead and has complete oversight of CECA’s communications and public affairs work. She also develops and manages the corporate business plan and is responsible for other operational duties, including the establishment of CECA’s three-year plan.
