Even though the restricted procurement route will no longer be available after October due to its absence in the new Procurement Act 2023, the upcoming system will enable public sector procurers to utilize a method known as the "competitive flexible procedure" as deemed suitable by the contracting authority for awarding public contracts (S20 (2) (b)). This is expected to encompass two-stage procurement processes, which are already familiar to public sector procurers.
Traditionally two stage processes have included a first, ‘selection’ stage, and a second ‘appointment’ stage. The first stage being a selection of which contractors to invite to submit a tender at the appointment stage; and a second stage where suppliers bid for the contract and the supplier to be appointed is decided.
What are the benefits of having a selection stage? Well, it enables buyers to know that the methods and processes used by the supplier are effective, achievable and the supplier can afford the approach being proposed. For the supplier it enables an expression of interest using a standard format, the selection questionnaire, and avoid the need to produce a full tender submission until they know that they are a good contender for the work/service/supply.
Suppliers have a mixed understanding of these two stage procurements and many will explain in the selection stage how they will deliver the contract to the buyer. This is not usually what is required.
Selection is about identifying those suppliers who have skills and experience that is relevant to the contract being procured.
At the selection stage, to state that ‘we will…’ misses the point, suppliers need to state ‘we have…’ or 'we do...'
and then support this with the very best evidence that they can demonstrate, for example, ‘we have introduced a process that identifies and implements cost savings to the client during the works in our contract with xyz, for example by ……, and as a result we have delivered savings of £123k for our client’. This states that they have identified a process, implemented it in a live contract and the benefits that it has achieved.
The ’we will…’ approach does not demonstrate that a tried and tested approach will be incorporated. Buyers may want to ask themselves ‘could I say this’ ie is it something that anyone could claim, even without skills and experience; without being tested against cost effectiveness and without being challenged in a practical way.
Procurers need to make it clear to interested parties what is require at the selection stage and ensure that their evaluation methodologies are clear about the need for evidence, supporting statements, benefits achieved and so on.
Suppliers need to read the SQ stage evaluation methodology, which should lay out the manner of evaluation and the scoring scheme being applied by the buyer.
No doubt the new Procurement Act will allow new procurement routes as buyers take advantage of the new freedoms offered by S20 of the Act but they will continue to need to be clear about what is required from interested parties at each stage of their procurement, and with the move away from a standard ‘restricted’ process buyers will need even greater understanding of the client’s needs in the procurement process.
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