On 13 November 2023, the UK Authorities revealed steering setting out its ambitions for innovation procurement below the brand new Procurement Act 2023 (not but in drive, of which you’ll learn a abstract right here). This additional expands on the ambitions underpinning the Remodeling Public Procurement undertaking that began after Brexit. The Authorities’s expectation is that the ‘the brand new laws will permit public procurement to be carried out in additional versatile and modern methods’, and that this can ‘allow public sector organisations to embrace innovation extra’.
The innovation procurement steering bases its expectation that the Procurement Act will unlock extra procurement of innovation and extra modern procurement on the ambition that this might be an actively supported coverage by all related policy- and decision-makers and that there might be advocacy for the event of economic experience. A primary hurdle right here is that until such advocacy comes with the funding of serious funds in creating abilities (and this pertains to each industrial and technical abilities, particularly the place the innovation pertains to digital applied sciences), such high-level political buy-in might not translate into any significant adjustments. The steering itself acknowledges that the ‘general tradition, experience and incentive construction of the general public sector has led to comparatively low urge for food for danger and experimentation’. Subsequently, that higher funding in experience must be coupled with a tradition change. And we all know it is a course of that may be very tough to push ahead.
The steering additionally signifies that ‘Larger transparency of procurement information will make it simpler to see what approaches have been profitable and encourage use of these approaches extra broadly throughout the general public sector.’ This probably factors to a different hurdle in unlocking this coverage as a result of generic information will not be sufficient to assist innovation procurement or the procurement of innovation. With the ability to efficiently replicate innovation procurement practices requires an in depth understanding of how issues have been carried out, and the way they should be tailored when replicated. Nonetheless, the brand new transparency regime doesn’t essentially assure that such granular and detailed data might be accessible, particularly as the sensible stage of transparency that can stem from the brand new obligations crucially hinges on the therapy of commercially delicate data (which is exempted from disclosure in s.94 PA 2023). Except there may be clear steering on disclosure / withholding of delicate industrial data, it will possibly properly be that the brand new regime doesn’t generate extra significant (publicly accessible) information to push the data inventory and assist modern procurement. This is a crucial situation that will require additional dialogue in a separate publish.
The steering signifies that the adjustments within the Procurement Act will assist public consumers in 3 ways:
‘The brand new guidelines focus extra on delivering outcomes (versus ‘going by way of the motions’ of a inflexible course of). Contracting authorities will have the ability to design their very own course of, tailor-made to the distinctive circumstances of the requirement and, most significantly, those that are finest positioned to ship the perfect resolution.
There might be clearer guidelines general and extra flexibility for procurers to make use of their industrial abilities to attain the specified outcomes.
Procurers will have the ability to higher talk their specific downside to suppliers and work with them to give you potential options. Utilizing product demonstrations alongside written tenders will assist consumers get a correct appreciation of options being provided by suppliers. That’s significantly impactful for newer, extra modern options which the authority will not be aware of.’
Though the steering doc signifies that the ‘new measures embody common obligations, choices for preliminary market engagement, and an necessary new mechanism, the Aggressive Versatile Process’, in observe, there are restricted adjustments to what was already allowed by way of market session and the final obligations— to eg publish a pipeline discover (for contracting authorities with an annual spend over £100 million), or to ‘have regard to the truth that SMEs face boundaries to participation and think about whether or not these boundaries will be eliminated or decreased’—are additionally marginal (if in any respect) adjustments from the nonetheless present regime (see regs.48 and 46 PCR 2015). Subsequently, all of it boils right down to the brand new ‘innovation-friendly procurement processes’ which might be enabled by the versatile (below)regulation of the aggressive versatile process (s.20 PA 2023).
The steering stresses that the ‘goal is that the Aggressive Versatile Process removes among the present boundaries to procuring new and higher options and offers contracting authorities freedom to allow them to attain the perfect match between the particular requirement and the perfect the market provides.’ The instance offered within the steering offers the skeleton construction of a 3-phase process involving an preliminary concepts and feasibility section 1, an R&D and prototype section 2 and a remaining tendering resulting in the award of a manufacturing/service contract (section 3). At this stage of generality, there may be little to differentiate this from a aggressive dialogue below the present guidelines (reg.30 PCR 2015). Satan might be within the element.
Furthermore, as repeatedly highlighted from the preliminary consultations, the under-regulation of the aggressive versatile process will increase the data prices and dangers of participating with innovation procurement as every new strategy taken by a contracting authority would require important funding of time in its design, in addition to an unavoidable danger of problem. The incentives should not significantly geared in the direction of facilitating risk-taking. And any extra detailed steering on ‘tips on how to’‘ perform an modern aggressive versatile process will merely change regulation and turn into a de facto normal by way of which contracting authorities might take the identical ‘going by way of the motions’ strategy as the method detailed in teh steering rigidifies.
The steering acknowledges this, a minimum of partially, when it stresses that ‘Behavioural adjustments will make the largest distinction’. Such behavioural adjustments might be supported by way of coaching, which the steering doc additionally describes (and there may be extra element right here). The coaching provided will encompass:
Information drops (open to everybody): An on-demand, watchable useful resource as much as a most of 45 minutes in complete, offering an outline of all the adjustments in laws.
E-learning (for expert practitioners inside the public sector solely): a studying & improvement self-guided course consisting of ‘10 1-hour modules and concludes with a talented practitioner certification’.
Superior course deep dives (for public sector professional practitioners solely): ‘3-day, interactive, instructor-led course. It consists of digital ‘deep dive’ webinars, which permit learners to have interaction with subject material specialists. This stage of interplay permits a deeper perception throughout the complete spectrum of the legislative change and assist ‘hearts and minds’ change amongst the learner inhabitants (creating ‘superusers’).’
Communities of observe (for expert and professional practitioners solely): ‘a system of collective vital inquiry and reflection into the regime adjustments. Supported by the central staff and superusers, they are going to assist people to embed what they’ve realized.’
As an educator and primarily based on my expertise of coaching professional professionals in complicated procurement, I’m skeptical that this quantity of coaching can result in significant adjustments. The 45-minute useful resource can hardly cowl everything of adjustments within the Procurement Act, and even the ten hour course for public consumers solely might be fairly restricted in how far it will possibly go. 3 days of coaching are additionally inadequate to go a lot additional than exploring a number of examples in significant element. And that is related as a result of that coaching will not be just for innovation procurement, however for every type of ‘totally different’ procurement below the Procurement Act 2023 (ie inexperienced, social, extra robustly anti-corruption, extra centered on contract efficiency, and many others). Shifting tradition and observe would require much more than this.
It is usually unclear why this (minimal) funding in public sector understanding of the procurement framework has not taken place earlier. As I already mentioned within the session, all of this might have taken place years in the past and a greater understanding of the present regime would have led to enhancements within the observe of modern procurement within the UK.
All in all, plainly the aspirations of extra innovation procurement and extra modern procurement are pinned on a moderately restricted quantity of coaching and in (largely voluntary, along with the day job) collaboration for super-user skilled practitioners (who will in all probability see their scarce abilities in excessive demand). It’s unclear to me how this might be a sport changer. Particularly as most of this (and particularly collaboration and voluntary data trade) might already happen. It might be that extra construction and coordination will carry higher outcomes, however this might require enough and adequate resourcing.
Whether or not there might be extra innovation procurement then depends upon whether or not more cash might be put into procurement constructions and assist. From the place I stand, that is not at all a given. I assume we’ll have to attend and see.
