Explaining the National Procurement Policy Statement

Published on 13 February, the National Procurement Policy Statement (NPPS) replaces a previous version issued in May 2024, following a change in government. Although not formal legislation like the Procurement Act 2023, the NPPS provides insight into how public sector bids and tenders may be influenced by the government’s broader strategic objectives.

With many other organisations – including the Local Government Association and Tussell – publishing their views on the revised NPPS, we provide an overview of its contents and identify key focuses the current government has identified in public procurement.

National Procurement Policy Statement overview

The five stated aims and objectives for public procurement are:

• Kickstarting economic growth by creating opportunities for small businesses, supporting high-quality jobs, and encouraging innovation and development of new technologies
• Making Britain a ‘clean energy superpower’ by reducing greenhouse gas emissions, minimising waste, promoting green technology usage and ensuring suppliers are committed to high environmental standards
• Reducing crime via supporting organisations that strengthen community cohesion, and encouraging/incentivising suppliers to recruit from groups struggling to access employment
• Breaking down barriers to opportunity by addressing specific skills gaps, facilitating access to training and removing barriers to entry for young people, under-represented groups and individuals with protected characteristics
• Building a ‘fit for future’ NHS – the link here is through appointing suppliers who provide good-quality jobs that facilitate physical and mental health.

Contracting authorities must have regard for the NPPS alongside the Procurement Act 2023 when awarding contracts or places on framework agreements.

Renewed focus on value for money

Aligning with one of the Procurement Act’s three central objectives, an entire section of the NPPS is devoted to delivering value for money as part of the tender process. Contracting authorities must conduct the tender procedure with cognisance of providing an efficient solution that is financially viable.

As part of this, the NPPS encourages contracting authorities to:

• Drive economic growth and strengthen supply chains by facilitating market entry to SMEs and VCSEs, diversifying the public sector’s supplier base
• Delivering social and economic value which supports the government’s broader aims and encourages stakeholder partnerships
• Ensuring the correct commercial capability and standards are implemented to procure and manage contracts effectively – including collaborating with other contracting authorities, where appropriate.

Lastly, the NPPS mentions minimising ‘low quality bids’ in delivering value for money in procurement. Many contracting authorities and purchasing organisations have began offering free courses on tendering to prospective bidders – in the hopes that this will improve the overall quality of submissions.

Still scope for social value?

Many contracting authorities and bidder organisations were disappointed by the exclusion of social value from the final draft of the Procurement Act’s legislative text. Although social value was included only implicitly in the Act, proponents of social value will be heartened to see it mentioned explicitly in the NPPS.

Guidance in the NPPS outlines that applying social and economic value requirements as part of the tender requirements ‘can have a significantly positive impact by broadening the public benefits’ which can be achieved in awarding a contract.

As such, contracting authorities should:

• Secure social and economic value which supports delivery of national missions, whilst also accounting for local and regional priorities and growth plans
• Ensure suppliers are working actively to eliminate bribery, corruption and fraud, the risk of modern slavery and address the environmental impact of works or service delivery.

Per our analysis at the beginning of last year, it appears that social value will remain a central part of public sector bidding for the foreseeable future.

How the NPPS aligns with our bid writing values

To summarise, the NPPS is closely aligned to our own organisational values, strategies and how we approach the procurement process:

• Integrating SMEs in government supply chains: The majority of our clients are small- and medium-sized organisations who may lack the internal capacity or expertise to produce a winning tender. With an 85% success rate, we have supported thousands of SMEs to acquire key public sector contracts – many of whom were bidding for the first time.
• Supporting high-quality bids: In addition to the bid and tender services we provide, we are also an approved partner of NEPO’s Supplier Partnership Programme, providing workshops, surgeries and training sessions. The programme’s aims are to impart the principles of a good tender submission to prospective bidders, thereby improving the standard of tender submissions.
• Focusing on social value: In 2021, we launched our in-house Social Value Practice division in recognition of the increased emphasis on social value in public sector bids and tenders. Our social value offerings encompass bid writing, bid review and training support, equipping bidders with the required knowledge and expertise to confidently tender for work which includes a social value element.

If you would like to discuss how we can support you with your tender submission, our sales and marketing team are available at info@executivecompass.co.uk.