Public procurement and contracting

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Social enterprises tackle a wide range of social and environmental issues and operate in all parts of the economy.

By using business solutions to achieve public good, the Government states that it believes that social enterprises have a distinct and valuable role to play in helping create a strong, sustainable and socially inclusive economy.

Successful social enterprises can play an important role in helping deliver on many of the Government's key policy objectives by:

  • helping to drive up productivity and competitiveness;
  • contributing to socially inclusive wealth creation;
  • enabling individuals and communities to work towards regenerating their local neighbourhoods;
  • showing new ways to deliver public services; and
  • helping to develop an inclusive society and active citizenship.

What's out there?

The Government spends over £1.6billion pounds per annum in Northern Ireland on procurement. Applications are assessed according to 12 underlying principles:

  • Accountability
  • Competitive supply
  • Consistency
  • Effectiveness
  • Efficiency
  • Fair dealing
  • Integration
  • Integrity
  • Informed decision making
  • Legality
  • Responsiveness and transparency

This approach allows for inclusion, as appropriate of social, economic and environmental goals within the procurement process. In Northern Ireland the Procurement Service is working with the Department of Enterprise, Trade and Investment with the Social Enterprise Network to increase knowledge and awareness of both parties respective needs. The process of procurement is the same across the UK.

How do you get it?

In the UK, public procurement has to follow the European legal framework. Essentially the Government says that procurement of goods, works or services by Government departments, including their executive agencies and non-departmental public bodies, must be based on value for money having due regard for propriety and regularity. The regulations apply for contracts for supplies and services above £100,000 in the case of departments and agencies and £154,000 in all other cases. For works contracts this rises to £3.86m in all cases.

Value for money is not about securing the lowest initial price. it is defined as securing "the optimum combination of whole life costs and quality to meet the user requirement".

When considering value for money the public sector organisations are looking to purchase the goods at the:

  • right price
  • right quality
  • right quantity
  • right time
  • right place

Steps in Public Procurement

Actions for the Commissioning body

  1. A review is undertaken to esablish the need or consult on the case for a service
  2. There is a decision to agree the business case for goods, works or services
  3. The development of a specification is undertaken
  4. To initiate a basis for a contractor selection, a process begins to set criteria for a judgement to be made - at the same time expressions of interest are invited from suitable bidders (organisations need to be on the call list at this stage!)
  5. Officers set the award criteria
  6. Contract conditions are set
  7. The contractor is appoointed
  8. Debriefing for those not appointed
  9. The contract management process begins
  10. Customer service is monitored
  11. Regular meetings with the client
  12. Planned improvements are monitored and recorded
  13. The service is reviewed for re-tendering or revision by the end of term.

Make contact with the government body which may be offering services in your field of work. Make yourself known as a potential contractor and get on the contact list.


NICVA | Neil Irwin | 05 Dec 2006
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