New rules on the procurement of public goods and services could benefit small businesses – including co-ops, community businesses and social enterprises, ministers say.
Taking force on 24 February, the Procurement Act “will improve and streamline the way procurement is done, and benefit prospective suppliers of all sizes, particularly small businesses, start-ups and social enterprises,” the government says.
The national procurement policy statement says that “Contracting authorities should: Maximise procurement spend with small and medium-sized enterprises (SMEs) and voluntary, community and social enterprises (VCSEs).”
The government says the act simplifies the bidding processes to make it easier to bid, negotiate and work in partnership with the public sector; makes commercial frameworks more open, so prospective suppliers are not shut out for long periods of time; removes bureaucratic barriers for smaller organisations so they can compete for more contracts; requires public bodies to provide consistent feedback for suppliers: and requires public bodies to provide bid assessments for final tenders.
The government has also set up the online Find a Tender platform, promising a more streamlined bidding process.
Procurement policy has long been highlighted by the co-op movement as a potential growth mechanism, with proponents of community wealth building and the co-op council model calling on local anchor institutions to direct their spending to worker co-ops, platform co-ops and other local SMEs.
And the potential of the Procurement Act was highighed in last month’s report from the co-operative commission appointed by the Royal Borough of Greenwich, and at the launch of the co-op toolkit developed for the Co-operative Councils’ Innovation Network (CCIN).
Related: Greenwich Council draws up its vision for future of co-operation
CCIN chair Cllr Jim Robbins said: “We welcome the provisions in the new procurement rules that will support our desire to support small and local businesses where we can, removing red tape and allowing co-operative councils to support their local economies.”
Tony Armstrong, CEO of Locality, said: “For too long, we’ve seen communities shut out of services because they can’t compete for big outsourcing contracts. This just leads to poor quality services, and it damages our economy because precious public sector investment leaks out of our communities.
“This is a positive step – our Keep it Local campaign has long argued that services should be provided by the local charities, social enterprises and community businesses that know local people best.”
“This new approach needs to turn the tide. Local community organisations can deliver better services for local people, and keep the income and opportunities flowing round their neighbourhoods. This is a first step towards that, and we look forward to working with the government to unlock the power of communities across the country.”
