SMEs and public procurement

The proposed move towards greater use of outcome-based specification presents
real opportunities to change public bodies’ approaches to project management.
Outcome-based specification discourages the use of risk-averse approaches, and
actively calls for a partnership-driven approach to ensure that public bodies get what
they need at a reasonable price. Again, this may require significant culture shifts
within the public sector, which will be challenging to implement.
It is also important to recognise that good procurement practice does currently exist
in parts of the public sector. It would be churlish to be overly-critical and ignore the
successful aspects that already exist.
Specific measures to encourage or require public authorities to learn from each other
could also generate benefits. There is a pool of expertise already in the public sector
that could be drawn on more effectively.
The sharing of expertise between public bodies also presents opportunities for cost
savings in the public sector. If public bodies were to pool their resources in specialist
areas of procurement (e.g. construction), then multiple authorities could benefit from
experienced and capable professionals while simultaneously reducing the overall
cost of procurement.
ACE will continue to promote members’ views on the public sector procurement
process as these proposals are implemented.
For more information and to share your views, please contact Michael Hall, ACE’s
head of policy and external affairs (mhall@acenet.co.uk).
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