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New rules will mean that companies with a track record of
poor delivery, fraud or corruption will be blocked from
winning public contracts
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Reform will scrap bureaucratic EU rules, creating simpler,
more flexible procurement
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These measures will make it easier for SMEs to bid for and
win contracts, which account for a third of public
expenditure
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The creation of new businesses and new jobs will now be a key
factor in procurement decisions, playing to the strengths of
British businesses
New powers have been announced today to allow the government to
exclude suppliers from winning public contracts if they have a
poor track record of delivering for taxpayers.
The plans are part of the government’s wide ranging changes,
which take advantage of new powers now that we have left the EU,
published as part of the consultation response to its procurement
green paper.
Under the new plans, hundreds of complicated and bureaucratic EU
rules will be torn up, with simpler, clearer and more flexible
rules put in place.
This will give the government more discretion to exclude
previously poorly performing suppliers, such as those who have
not delivered previous projects on budget or on time.
Suppliers can also be banned if they have undertaken unethical
practices, such as a lax approach to safety, or where there are
national security or environmental concerns.
Chancellor of the Duchy of Lancaster said:
“Leaving the EU gives us the perfect chance to make our own rules
for how the government’s purchasing power can be used to promote
strong values.
“While doing so we’re increasing transparency and ensuring that
procurement remains fair and open.
“These simpler and more flexible rules will also make it easier
for small businesses to win work – placing levelling up at its
heart.”
Under the current rules, suppliers can only be excluded from
winning new government contracts if there has been a significant
breach of contract.
With about £300bn spent every year on public projects such as the
delivery of new schools, hospitals and roads, public procurement
represents about a third of all public expenditure.
Transparency and
emergency procurement
New measures on transparency will be introduced, so that members
of the public can see exactly where their money is being spent
and compare this across a range of services. This will be done
through procurement data being published in a standard, open
format, accessible to anyone, as well as the increased efficiency
of having a single registration platform for suppliers.
The plans will also make procurement more transparent and
effective during times of crisis, where government needs to
act quickly to ensure vital goods and services are bought.
Competition will be introduced into emergency buying, meaning
that government doesn’t need to wholly rely on direct awards in
times of crisis.
Helping small
businesses
The changes will make it easier for small and medium size
businesses to bid for and win government contracts, by
overhauling the current EU rules, which are bureaucratic and
unnecessarily complicated. This often discourages smaller
suppliers from bidding.
A simplified bidding process will make it easier and more
efficient for SMEs to win work. One efficiency being brought in
is creating one single central platform which suppliers have to
register on, so they only have to submit their data once to
qualify for any public sector procurement.
Levelling
up
Procurement changes outlined in today’s consultation response
will also help level up the country. Under new rules, procurers
will be able to give more weight to bids that create jobs for
communities, build back better from the Covid-19 pandemic and
support the transition to net zero carbon emissions. These
‘social value’ factors mean that buyers don’t just consider price
alone.
The greater flexibility in the new rules will allow local leaders
and communities to grow the private sector and raise living
standards in their area, by being able to procure more locally
and flexibly.
, Minister of State at the
Cabinet Office, said:
“These reforms are just one of the many areas where we are taking
advantage of our exit from the EU's rules to design a procurement
system that is better tailored to the UK and our economic needs.
“They will open up new opportunities for our small businesses to
win public contracts, boost efficiency and competition, and
deliver better results for UK taxpayers.”
