Possibly to the surprise of some, procurement professionals in the UK appear to see Brexit as an opportunity not to scrap the EU procurement directives but to reform them.
A survey from procurement consultancy SPS among procurement specialists in public sector bodies found that some 58% of respondents favoured reform. Only 15% wanted to scrap them entirely and 25% wanted them to stay as they are. There was some regional bias detected, with 38% of those based in London favouring leaving well alone.
By far the largest group though seemed to recognise their value in providing a system within which to fairly allow competition from suppliers for valuable contracts, although it was considered that they could be better if improved.
SPS says its survey covered organisations responsible for spending about £100,000 million of public money a year.
Agreement is growing that Brexit will not mean overthrowing all of the trade related laws and regulations built up over the past 40 years or so, in which case the procurement rules could be a prime candidate for being kept. The potential is created however for changing current European rules if something better, and more conducive to a uniquely UK way of doing things, can be devised.
It would be some surprise if directives introduced in the 1970s were in their original form still up to the task of selecting suppliers for delivering modern services, but the directives in force today are far from the originals. They are subject to constant scrutiny from the EU bureaucracy and from losing bidders in particular.
The two extremes of views revealed by the survey seem to be that the directives are a successful, anti-protectionist, liberalising influence enforcing good practice; or, they are an unnecessary and expensive overhead adding unfair costs to suppliers without delivering any value, while causing delays to project start up and hence delivery. Anecdotes abound supporting both types of view so it is useful to have some confirmation of attitudes of professionals on the client side.
The procurement professionals in this survey came from the buy side of the equation, with 75% of them from local government and the rest from central government, housing associations and NHS trusts. Some respondents thought the directives were not capable of reform – compared to negotiating Brexit though it should be a piece of cake.
What respondents to the survey said they thought the reforms should be though points the way towards areas of future, probably heated, debate. One proposed change is guaranteed to spark controversy – making failed bidders who mounted spurious contract award challenges compensate the organisation they had challenged.
Who is to decide what is spurious, and what would constitute spuriousness is left unexplored. It was also thought a good reform to narrow the criteria for issuing challenges and shortening timescales. There is obviously a wide gulf between what client and suppliers think is needed to improve procurement. Let’s hope Brexit provides the opportunity to narrow it.
Nick Barrett
Editor