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Procurement Bill [Lords] - Sitting 2
31 January 2023
Type
Public Bill Committee
At a Glance
Issue Summary
The statement discusses Clause 9 of the Procurement Bill, which introduces light-touch contracts for public services requiring greater flexibility. The statement discusses clause 11 of the Procurement Bill, which requires contracting authorities to carry out covered procurement solely in accordance with the procedures outlined in the bill. The statement discusses the importance of including social value as a procurement objective in the Procurement Bill to support local British enterprises and create economic, social, and environmental benefits. The statement addresses amendments aimed at improving public procurement practices through clearer mandates on social value and public value. Kirsty Blackman discusses amendments related to value for money, integrity, transparency, anti-corruption, and net zero climate commitments in the Procurement Bill. Alex Burghart discusses the amendments proposed in the Procurement Bill regarding social value and public benefit objectives. Alex Burghart discusses the Procurement Bill and its provisions for transparency, integrity, and anti-corruption measures. The amendments propose including cooperative societies and charities in procurement processes, ensuring barriers faced by these entities are considered. The statement discusses amendments aimed at removing barriers for co-operatives and charities in accessing public procurement processes. Alex Burghart discusses amendments to the Procurement Bill aimed at including charities and co-operative societies in procurement principles, and argues against these changes. Alex Burghart discusses the procurement policy statement and the flexibility of government to update or withdraw it based on strategic priorities. Alex Burghart discusses amendments to the Procurement Bill regarding the national procurement policy statement (NPPS) process. The MP discusses the importance of transparency, integrity, and fair treatment in procurement processes. Kirsty Blackman discusses various amendments related to procurement, emphasizing the importance of including principles for cyber-security, fair treatment of workers, climate change targets, and preventing fraud. She also highlights the need to prevent contracts with companies involved in modern slavery or crimes against humanity. The statement discusses amendments related to national procurement policy, including cybersecurity, fair treatment of workers, and exclusion of suppliers involved in modern slavery. Alex Burghart discusses the Procurement Bill and highlights the collaborative work between Westminster and Cardiff in developing the legislation. Clause 15 of the Procurement Bill concerns planned procurement notices, designed to provide early information to potential suppliers and contracting authorities.
Action Requested
Clause 9 aims to define and regulate light-touch contracts through regulations that specify the types of services eligible for lighter rules while maintaining transparency and compliance with international agreements.
Key Facts
- Light-touch provisions allow special treatment for certain public contracts, including social, healthcare, and legal services.
- Common procurement vocabulary codes will be used to identify specific services under light-touch contracts.
- Contracting authorities must openly advertise light-touch contracts unless a direct award ground applies.
- Clause 11 requires covered procurement to be carried out solely in accordance with the Procurement Bill.
- Contracting authorities must use procedures specified in clauses 19, 41, 43, and 45 of the bill for different forms of procurement.
- Suppliers can seek remedies under part 9 if a contracting authority materially fails to follow the requirements set out in the bill.
- Social Enterprise UK estimates missed £700 billion-worth of opportunities for economic, social and environmental value between 2010 and 2020.
- The amendment would require contracting authorities to consider social value in procurement objectives.
- Cammell Laird's suitability for building the Mersey ferries highlights local job creation and community benefits.
- The amendments aim to add 'public value' as a procurement objective.
- £3 billion is spent annually on procurement by the UK Government.
- 92% of respondents agreed with enshrining procurement principles in law during a government consultation.
- The UK dropped five points on Transparency International’s corruption perceptions index from 11th to 18th globally.
- Blackman advocates for the inclusion of transparency and anti-corruption measures in clause 12.
- She emphasizes the importance of integrating net zero climate change commitments into procurement decisions.
- Amendment 9 seeks to replace value for money with a new duty on social value.
- Amendment 10 is considered unnecessary as public benefit already allows for socioeconomic development considerations.
- Amendment 101 aims to add transparency and anti-corruption efforts to procurement objectives.
- The Procurement Bill includes greater requirements for publishing information on an online platform.
- Ukraine advised UK Government when formulating procurement ideas.
- Contracting authorities must consider integrity, preventing fraud and corruption, conflicts of interest, and exclusion of inappropriate suppliers.
- Clause 12 does not define value for money to allow flexibility.
- Amendment 1 would insert 'and co-operative societies' after 'enterprises'.
- Amendments 2, 3, and 90 aim to include cooperative societies in various sections of the Procurement Bill.
- Amendments 90 and 91 focus on ensuring charities are considered during procurement processes.
- There are over 7,000 co-operatives across the UK employing 250,000 people.
- Co-operatives contribute nearly £40 billion annually to the UK economy.
- The number of independent co-ops grew by 1.2% in 2020 despite the impact of covid.
- Only 1.5% of co-ops were dissolved compared with 6.5% of businesses in the wider economy that year.
- The Government spent £11.6 billion on contracts with charities alone in 2019-20.
- Amendments 90 and 91 seek to amend clauses 12 and 16 of the Procurement Bill.
- Clause 12 sets out procurement principles including value for money, public benefit, information sharing, and integrity.
- Charities and co-operative societies are discussed in relation to their participation in procurement processes.
- Amendment 22 would require the Government to publish a national procurement policy statement.
- Burghart assures that the Government intends to publish an NPPS, which will be flexible and may include updates or withdrawals based on strategic priorities.
- Amendments propose adding cyber security, national security, fair treatment of workers, and measures against modern slavery, genocide, and crimes against humanity as procurement principles.
- Amendments 28 and 29 aim to overturn Lords amendment 46.
- The Government believes most of the principles are already core elements of the procurement regime.
- Clause 13 mandates due regard to important principles before publication of the NPPS.
- During the pandemic, billions of pounds of personal protective equipment were written off due to lack of transparency.
- Just over £10 million was clawed back from fraudulent PPE contracts during the pandemic as of Christmas.
- The UK is now the third most targeted country for cyber-attacks after the USA and Ukraine.
- Amendment 7 would introduce cyber-security as a strategic national priority in procurement policy.
- Amendment 11 relates to incorporating national security into procurement policy.
- Amendment 28 opposes new clause 2 and removes important principles from the Bill.
- Amendments 7 and 11 address cyber-security risks facing the UK.
- Amendment 107 focuses on fair treatment of workers in public spending decisions.
- Clause 13(4) includes achieving targets set under the Climate Change Act 2008 and the Environment Act 2021 as strategic priorities.
- £1 in every £3 of public money is spent on public contracts.
- Amendment 29 aims to minimize fraud, waste or abuse of public money.
- Amendment 105 seeks to prevent grants of procurement contracts to suppliers involved in modern slavery, genocide, or crimes against humanity.
- Amendment 7 seeks to add 'cyber security' to the list of principles for national procurement policy.
- Amendment 105 aims to prevent contracts from being awarded to suppliers involved in modern slavery, genocide, or crimes against humanity.
- The Bill already contains exclusion grounds that target serious risks such as modern slavery and a debarment regime allowing Ministers to exclude suppliers with misconduct issues.
- The Procurement Bill is a result of joint work between Westminster and Cardiff.
- Burghart hopes colleagues in Holyrood will join the effort.
- The bill aims to create a new procurement landscape taking advantage of post-Brexit opportunities.
- Clause 15 allows for reduced tender periods if a notice is published at least 40 days but no longer than one year before the tender notice.
- The notices can reduce procurement times from up to 25 days to a minimum of 10 days.
- SMEs and charities are expected to benefit significantly from these planned procurement notices.
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