Some encouraging activity has been seen on the public procurement front recently, all well reported on in Construction Law. Professor David Mosey’s recent report on frameworks has been a stand out contribution.
Two pieces of news however may have sent some alarm bells ringing. The appointment of Jacob Rees-Mogg as the Secretary of State for Government Efficiency can’t have raised many hopes for the radical reform needed to create the modern, efficient procurement system that the UK lacks. Mr Rees-Mogg is popularly known in Westminster circles as the Minister for the 18th Century, such is his reputation for holding modern attitudes.
He is also Secretary of State for Brexit Opportunities, and that part of his portfolio might be expected to have occupied the most industrious of government Ministers pretty much full time. Others however might have thought there aren’t that many opportunities to pursue.
The Minister seems to have decided to set about reforming procurement first. And the first target in his sights is reportedly this dangerously modern idea of giving weighting to achieving social value outcomes from procurements. What was wrong with the traditional values of pursuing lowest prices, he seems to be asking.
It is only little over a year since the Cabinet Office issued Procurement Policy Note 06/20 – ‘taking account of social value in the award of central government contracts’ and requiring public contracting authorities to apply a minimum weighting of 10% of the total score in procurements to social value. What social value actually is may be moot, but the Cabinet Office defined it under five themes – Covid-19 recovery, tackling economic inequality, fighting climate change, equal opportunity and wellbeing.
The justification – or smoke screen – for considering this apparent reversal seems to be a desire to reweight government contracts in favour of smaller suppliers who the Minister fears are being squeezed out by larger suppliers.
As we have reported in our weekly news email, some would agree that the promotion of social value – encouraging practices that promote the economic, social and environmental wellbeing of an area – achieves value for money. Some would say government has an obligation to focus on and drive behaviours that contribute to the government’s own ‘levelling up’ and sustainability ambitions.
Mr Rees-Mogg may modify his views when he has fully consulted with industry so the principles of social value might not be abandoned from tender award criteria. It seems very possible though that in practice any social value focus will be diluted under his tenure.
Such a development would not be consistent with the principles in the government’s own Construction Playbook, which sets out key policies and guidance for how public works projects and programmes are assessed, procured and delivered, but which could also be in imminent danger of dilution of principles. The Playbook was published in late 2020 and is now being ‘refreshed’. Content is to be revised and updated.
Some sections are to be made clearer, and the Playbook is to be made easier to use for public sector clients outside government, and some revision might be needed in light of the Building Safety Bill.
It can only be hoped that the Minister will not be allowed to back-pedal his Penny-Farthing on procurement reform.
Nick Barrett
Editor