Member Article

Local authorities need to "step up to the mark" on procurement, say MPs

Councils have been urged to “step up to the mark” and support local businesses in their procurement processes by a group of MPs.

In a recent report the Local Government Select Committee has called on local authorities to award contracts on the basis of wider social value, not just price, and cut burdens on local businesses.

The committee states: “The cost to companies wishing to bid for council business can be an eye-watering £50,000 per tender – higher than in most other EU countries.

“Councils must become more confident in how procurement guidelines can be followed without imposing excessive burdens on businesses.

“Suppliers wanting to work with more than one council often have to complete multiple, complex forms that demand excessive information. If Pre-Qualification Questionnaires are to continue they have to be simplified and standardised so companies can reuse a completed PQQ across the sector.“

The report also recommends that local authorities go further in developing the skills of staff across designing, commissioning and managing services - not just procurement officers.

Sentiments were backed by Ted Salmon, North East regional chairman of the Federation of Small Businesses.

He said: “We support the cross-party recommendations, which build on the evidence we submitted. Small and micro firms in the North East need a fairer deal at a local level. Speedier payments and greater opportunities for them to land valuable contracts will help. As such we want Government and local authorities respond positively to the points raised - especially on late payments and the support for a streamlined PQQ process.

“FSB research has shown the value that goes back into the local economy when local authorities spend with small businesses. Making the bidding process simpler so that small firms can compete is something the FSB has called for, and it is essential for local authorities engage early on planned procurements to make the most of what these businesses have to offer. In the North East we’d like to see Councils and the wider public sector embrace the potential of the Social Value Act to help more small businesses and social enterprises win more business and keep trade local.

“Late payment by suppliers to local authorities is another issue which puts excessive pressure on small firms. The clear recommendation on making sure payment terms are passed down the supply chain will be welcomed as some firms remain frustrated that most Tier 1 suppliers are paid within 28 days, but many do not pass these payment terms on.”

This was posted in Bdaily's Members' News section by Tom Keighley .