The Procurement, Tender, and Sales teams at Pelican recently participated in a comprehensive training session focused on the upcoming reforms in public procurement laws. The goal was to understand these changes and find the best ways to support our clients and partners in the public sector.
Our Tender Team outlines some key changes that are likely to be integrated into the new framework, with a slated implementation date of October 2024.
Nutrition and sustainability integration
A notable change post-reform is the potential inclusion of dietary considerations. The NHS “Eatwell Guide” and emphasis on plant-based diets may become integral components of all food-based contracts. This addition aligns with contemporary health and sustainability ideals.
Mandatory Real Living Wage compliance
Suppliers seeking public procurement contracts might be obligated to ensure that they meet the Real Living Wage standards. This directive aims to ensure fair compensation for workers.
Taxation compliance for multinational suppliers
Multinational suppliers operating outside the UK might face a new requirement to provide evidence of taxation within the UK. This provision intends to promote transparency and tax compliance.
Revamped frameworks
One of the significant changes affects open framework contracts. They currently last up to four years but are expected to extend to a maximum of eight years under the new reforms. Additionally, the option for refreshes (new suppliers) during the contract’s tenure will be introduced, subject to valid justifications such as changes in allergen requirements.
Within the new reform, refreshes will be mandated at least once within the initial three years, opening the door for new entrants. Existing suppliers can reaffirm or modify their bids for evaluation. This updated process now provides added benefits to enhance competition.
Key Performance Indicators (KPIs) as benchmarks
The new regulations introduce a stipulation mandating at least one KPI for each contract.
Suppliers will be required to provide quarterly evidence to demonstrate the fulfilment of these KPIs. This transparency will be further supplemented by potential integration into a central digital platform; however, this has not yet been confirmed.
KPIs will be meticulously defined during the award stage to outline the baseline and the anticipated elevated performance. Consequences for failing to meet these benchmarks could lead to inclusion in a debarment list, which will only be visible to buyers.
Contract award letters
The existing practice of contract award letters will undergo transformation. They will be replaced by intention-to-award and award notices, which will be published in the ‘Find a Tender’ portal. These notices will provide more comprehensive details about the awarded contracts in an effort to streamline the communication process.
We are here to help.
If you need advice or support about Public Tendering Legislation, please contact our team at hello@pelicanprocurement.co.uk.
