Procurement expert, Abby Semple, explains how changes in the Procurement Act will put SMEs and sustainability upfront and centre

As part of LAIN’s programme of events, LAIN’s Procurement and Green New Deal Working Groups recently came together to learn more about the changes expected when the Procurement Act comes into force in October 2024. In this blog, Abby Semple, an expert in sustainable procurement from Greenville Procurement Partners who delivered the session, challenges members to view the changes in law as opportunities to create more sustainable and diverse supply chains.

What will the shake-up of current procurement rules mean for LAIN’s work?  

Abby Semple, an expert in sustainable public procurement, started the session with an overview of the impact sustainable procurement practices have had. 

We’ve now got a good evidence base about the impact public bodies are making. Carbon savings and new jobs are routinely included in tenders.  

Looking at Scandinavia, Abby notes, the market has shifted in response to a consistent approach to environmental requirements with products and services becoming cheaper and more readily available.

Key changes in the new Procurement Act we should know about.

In the UK, the public sector is readying for new rules coming into force on October 28th. It is intended that more SMEs bid for contracts through simplifying tender procedures.

Members examined what the changes would mean across two areas of LAIN’s work – addressing the climate emergency and improving supplier diversity. 

One key change to subcontracting rules means that public bodies will be able to direct their supplier to use a specific sub-contractor for some requirements. This will help small organisations who struggle to go through a public procurement process or manage a contract themselves, but still have value to add. 

Greater transparency on upcoming contracts, a new central bidding platform and opening frameworks should also help more businesses, particularly SMEs, to win work.  

Building on current approaches

But whilst there will be important changes in some areas, Abby highlights that opportunities lie in taking a thoughtful approach to existing rules.  

She cites the example of contract reservations, which allow contracts for goods, services or works to be reserved for public service mutuals and supported employment providers. 

The new rules don’t define disadvantage, Abby states, and in the case of supported employment providers, we can broaden out who we think of as disadvantaged, making it easier to support more groups who can face significant barriers to employment.

Members were challenged to consider what they would like to have in place in three years’ time.  

Looking at how we can further develop existing practices emerged as a theme, with a greater focus on contract management identified by attendees as an important lever to drive change.

Lessons from Canada

The session outlined the approach Toronto has taken to improve environmental outcomes and increase supplier diversity. 

Eye-catching practices include a Circular Economy Procurement Plan and the ‘Toronto Green Standard’ which has introduced a new performance measure on the reuse of building materials. 

A Social Procurement Programme has given smaller and diverse businesses more economic opportunities. 

New practices include a least one certified diverse supplier submitting a quote for contracts between $3000 - $100,000 from a list that is circulated monthly. Business names are obtained from diversity organisations. 

For high-value contracts, suppliers are encouraged to develop supplier diversity programmes and awarded points for this. 

As the workshop closes, Abby prompts us to reflect on our achievements with one final question. Members are asked to continue our exploration of the new rules, considering who might be missing from our work, if we want to build an increasingly inclusive London.