Public Sector Procurement Mistake Number One: Not Looking Far Enough

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Did you know that the UK spends £290 billion on public procurement every year? The government is focusing on overhauling the previously outdated public sector procurement regime and so, they are looking to create more opportunities for innovative companies on their way.

It may seem odd to think that something as simple as not looking far enough while you search is a public sector procurement mistake, but it is very easy to overlook and can be extremely costly. You will end up not only losing out on the opportunity to buy what you need, but you will also likely limit the value for money deal using public funds.

Searching far enough can help you achieve your goals for efficiency and value for money. Keep reading to learn more.

Barriers to Public Sector Procurement

The goal of the government is to find the right contracts and select suppliers that offer the best social value for money. Value for money does not mean the lowest price. You need to consider the effectiveness and quality of the goods or services provided.

The public procurement process can be restrictive and create additional complexities which in turn can lead to limited innovation and flexibility that can be overshadowed by bureaucracy and legislation.

Not searching far enough can deter small companies from bidding for the contract. It can also result in a limited pool of candidates that don’t offer the best value for money. Instead of choosing a supplier based on convenience, consider expanding your bidding criteria.

Benefits of Expanding Bidding Criteria

Expanding your bidding criteria to companies that are outside of your usual boundaries can have a whole host of benefits and assist you in achieving the procurement principles of value for money.

You may be concerned about moving into territories you haven’t worked in. You might also be unsure of the risks associated with working in certain communities. While these risks are important to consider, understanding the different benefits can help you make a well-informed decision.

Different Companies

Expanding your search criteria can provide you with a broader pool of candidates for your public sector procurement. The more options you have, the better decision you can make in support of public funds being used in the best way. You want to make sure that you get the widest selection of companies with access to highly skilled workers and new technology.

Better Technology

With better technology, we are no longer limited by distance. There is no reason to close off opportunities that are farther away because new technology has brought us all closer together.

Evolving technology means that the borders of a city or country are no longer barriers. They are opportunities for growth and development.

Working with Different Communities

One of the important aspects of public procurement is non-discrimination. It means not showing favouritism among the suppliers. When you expand your search, you can work for different communities ensuring all suppliers are given a fair opportunity to compete for the bid.

Potential Cost Savings

With a broader criterion, you can get bids that offer cost savings in the form of cheaper labour costs. Restricting the search to companies in a certain area can limit your options to companies that have a higher overhead. When distance and territory are not an issue, you can get a wide range of companies that don’t have a high overhead that increase the price of their bids.

Access to More Skilled Workers

It can be hard to find a select skillset within the strict limits of your bid criteria. The broader your search, the greater your access to skilled workers. You can get access to a group of workers with a higher quality of education and extensive training.

Technological advances in the workplace mean that you need a higher calibre of workers with the right skills and training. The demand for these workers is increasing, but you may be limiting yourself by setting territory restrictions.

Creation of Better Opportunities for Alternative Economies

You can also find people with more specialised skillsets if you expand your territory. For example, you can find someone who can do the work you need with a drone for half the price. This ensures that you are creating better opportunities for alternative economies.

Get Extra Support for Your Public Sector Procurement

Public sector procurement can be more restrictive, which can end up limiting the number and type of bidders. These restrictions deter small businesses and start-ups from bidding for public contracts. Expanding your public bid outside your city or country offers many benefits including cost savings and access to skilled workers.

Working with our team can help you achieve the public sector’s promise of integrity, efficiency and value for money. Contact us today to request a free demo of the Delta eSourcing suite. We can help you manage everything from creating notices to managing contracts for public sector procurements.