Knowledge Drop for Contracting Authorities Part 3 of 6 mp4

Summary

The video script discusses the 2023 Procurement Act's impact on contracting authorities, introducing a simplified approach with two main competitive procedures: the open and the new competitive flexible procedure. It highlights the benefits of open frameworks and dynamic markets for public contracts, allowing flexibility and competitiveness. The script also covers direct awards, emphasizing transparency and the need for quick, informal competitions in urgent situations. It concludes with a reminder that the material is for learning purposes and not legal advice.

Takeaways

• 📚 The introduction of the Procurement Act 2023 brings significant changes to procurement procedures and market access routes for contracting authorities.
• 🔄 The competitive flexible procedure is a new multi-stage process that allows for the design of tailored procurement processes to meet specific requirements and drive innovation.
• 📉 The number of competitive procedures has been reduced to two: the open and the competitive flexible procedure, with the latter being a new addition.
• 🔍 Contracting authorities are encouraged to engage with suppliers through various tools like negotiation and dialogue to achieve fit-for-purpose solutions and value for money.
• 🗓 The Procurement Act mandates minimum time scales for key stages of the procedures, emphasizing the need for proportionate processes based on the nature and complexity of the requirement.
• 📝 Pre-market engagement with suppliers is encouraged to help develop procurement approaches, and the process details must be clear in tender notices or associated documents.
• 🔑 Open Frameworks introduced by the Act allow for the appointment of new suppliers throughout the term of the framework, which can last up to 8 years, enhancing supplier base refreshment and competition.
• 🌐 Dynamic markets, similar to Dynamic Purchasing Systems (DPS), are introduced for quick access to a list of qualified suppliers, suitable for emerging and niche markets, and are open to new entrants at any time.
• 📊 A central register will provide full visibility of Frameworks and dynamic markets, increasing transparency and helping identify available market routes while reducing duplication.
• 🚫 Direct awards are permissible under certain circumstances, such as extreme urgency or single-supplier situations due to technical or intellectual property reasons, but are subject to new regulations and transparency requirements.
• ⚠️ A mandatory transparency notice must be published before a direct award to inform the market of the intention and reasons for bypassing competition, ensuring public confidence in contract awards.

Q & A

What is the main focus of the 'Procurement Act, 2023' knowledge drop series?

The series focuses on changes to procurement procedures and routes to market, specifically covering the competitive flexible procedure, open frameworks, dynamic markets, and direct awards.

What are the two main competitive procedures introduced by the simplified approach of the Procurement Act?

The two main competitive procedures are the 'open' and the 'competitive flexible' procedure.

How does the competitive flexible procedure differ from the open single stage procedure?

The competitive flexible procedure is a new multi-stage process that allows contracting authorities to design their own procurement processes, while the open single stage procedure has been retained and operates similarly to the previous regulations.

What opportunities does the competitive flexible procedure offer to contracting authorities?

It offers the opportunity to engage with suppliers through various tools like negotiation and dialogue, driving innovation and achieving fit-for-purpose solutions and value for money.

What is the purpose of the minimum time scales mandated in the Procurement Act for key stages of the procedures?

The purpose is to ensure that the procedure is proportionate to the nature and complexity of the requirement.

What is an 'open framework' as introduced by the Procurement Act?

An open framework is a public contract between a contracting authority and suppliers that allows for the appointment of new suppliers throughout the term of the framework, which can run for up to 8 years.

How do dynamic markets differ from conventional frameworks?

Dynamic markets are similar to dynamic purchasing systems (DPS) and allow suppliers to join at any time, ensuring continuous access to new entrants and innovative solutions.

What is the main advantage of using dynamic markets for procurement?

Dynamic markets are most suited for emerging and niche markets for specialist or complex requirements, allowing for quick access to a list of qualified suppliers.

Under what circumstances is a direct award of a contract without competition allowable under the Procurement Act?

Direct awards are allowable in cases of extreme and unavoidable urgency, or when only a single supplier can deliver due to technical or intellectual property reasons.

What is required before a direct award can be undertaken according to the Procurement Act?

A mandatory transparency notice must be published to highlight the intention to undertake the direct award and the reasons for doing so.

What is the importance of pre-market engagement with suppliers as encouraged by the Procurement Act?

Pre-market engagement helps in developing a tailored approach that best suits the contracting authority's requirements, driving best value and achieving organizational and social benefits.

Outlines

00:00

📚 Introduction to the 2023 Procurement Act: Changes and Flexibility

The first paragraph introduces the 2023 Procurement Act's knowledge drop series, focusing on changes for contracting authorities in procurement procedures. It highlights the introduction of the competitive flexible procedure, which allows for the design of tailored procurement processes to meet specific requirements and local needs. The paragraph also discusses the simplification of procurement procedures, reducing them to two main types: open and competitive flexible. The new procedure encourages supplier engagement through negotiation and dialogue to drive innovation and achieve value for money. The mandatory minimum time scales for key stages of the procedures are outlined, and contracting authorities are urged to consider the nature and complexity of requirements to ensure proportionality. Pre-market engagement with suppliers is encouraged to develop an effective approach, and the importance of transparency and the use of frameworks and dynamic markets is emphasized, including the introduction of open frameworks and dynamic purchasing systems to increase competition and refresh the supplier base.

05:00

🏆 Direct Awards and Transparency in the Procurement Act

The second paragraph delves into the conditions under which direct awards are permissible without competition, as outlined in the Procurement Act. It mentions that direct awards are only allowed in specific circumstances, such as extreme urgency or when a single supplier is capable due to technical or intellectual property reasons. The paragraph introduces a new ministerial power to allow direct awards in cases of life protection, public order, or safety. Contracting authorities are encouraged to conduct quick, informal competitions to ensure public confidence in the awarding process. A mandatory transparency notice must be published before a direct award to inform the market of the intention and reasons. The paragraph concludes by summarizing the key points about procurement procedures, the competitive flexible procedure, open frameworks, and dynamic markets, and reminds readers that the material is for learning purposes and not legal advice.

Keywords

💡Procurement Act, 2023

The 'Procurement Act, 2023' is the legal framework governing the process of purchasing goods, services, or works from an external source by contracting authorities. It is central to the video's theme as it sets the stage for the discussion on changes in procurement procedures and aims to streamline and modernize the process. The script discusses how the new Act introduces more flexible and competitive procedures, such as the 'competitive flexible procedure' and 'open Frameworks,' to improve the efficiency and effectiveness of public procurement.

💡Contracting Authorities

Contracting Authorities are the entities responsible for procuring goods, services, or works as per the Procurement Act. They play a pivotal role in the video's narrative as the new procedures and frameworks under the Act are designed to be more adaptable to their specific needs and local requirements. The script emphasizes the increased flexibility and discretion granted to these authorities in designing procurement processes that best suit their purposes.

💡Competitive Flexible Procedure

The 'Competitive Flexible Procedure' is a new multi-stage procurement process introduced by the Act, allowing Contracting Authorities to tailor their procurement processes to meet specific needs. It is highlighted in the script as a significant change that offers the opportunity for a more commercial approach, enabling authorities to engage with suppliers through negotiation and dialogue, thereby driving innovation and achieving value for money.

💡Open Frameworks

Open Frameworks are public contracts that establish terms and conditions for future requirements, allowing for quicker awards via call-off contracts. The script introduces this concept as a flexible tool under the new Act, which can run for up to 8 years and allows new suppliers to join at different stages, ensuring a competitive and refreshed supplier base throughout the term.

💡Dynamic Markets

Dynamic Markets, similar to Dynamic Purchasing Systems (DPS), are lists of qualified suppliers eligible for future procurements. They are open for new suppliers to join at any time, facilitating quick access to innovative solutions. The script positions Dynamic Markets as suitable for a wide range of goods, services, and works, particularly for emerging and niche markets, and mentions a central register for transparency across the public sector.

💡Direct Awards

Direct Awards refer to the awarding of contracts to a supplier without competition, permissible under certain circumstances as outlined in the Act. The script discusses the conditions under which direct awards can be made, such as extreme urgency or when only a single supplier can deliver due to technical or intellectual property reasons, and emphasizes the need for transparency through mandatory notices.

💡Pre-market Engagement

Pre-market Engagement is the process of interacting with suppliers before the formal procurement process begins. The script encourages Contracting Authorities to undertake this engagement to help develop their approach, suggesting that it can lead to a more tailored and effective procurement strategy that drives best value.

💡Mandatory Transparency Notice

A Mandatory Transparency Notice is a public announcement that must be published before a direct award is made, as required by the Act. The script explains that this notice is crucial for demonstrating to the market the intention and reasons for a direct award, thereby ensuring transparency and public confidence in the procurement process.

💡Commercial Approach

A commercial approach in the context of the video refers to the utilization of procurement and commercial expertise to achieve a more efficient and effective procurement process. The script highlights the freedom and flexibility of the new procedures as an opportunity to unlock the benefits of such an approach, allowing for innovation and value for money.

💡Innovation

Innovation in the video is associated with the potential for creating fit-for-purpose solutions through the engagement with suppliers during the procurement process. The script suggests that the new flexible procedures can help drive innovation, which is essential for achieving better outcomes and value for money in public procurement.

💡Value for Money

Value for Money is a key objective in the procurement process, aiming to achieve the best quality goods, services, or works at the lowest possible cost. The script discusses how the new procedures under the Procurement Act, such as the Competitive Flexible Procedure, are designed to help Contracting Authorities achieve this by engaging with suppliers and driving innovation.

Highlights

Introduction of the Competitive Flexible Procedure, a new multi-stage process allowing contracting authorities to design their own procurement processes.

The Open Single Stage Procedure is retained with similar operation as under previous regulations.

Simplification of procurement procedures to just two types: Open and Competitive Flexible.

The opportunity for engaging with suppliers through negotiation and dialogue to drive innovation and achieve value for money.

Mandated minimum time scales for key stages of the procedures in the Procurement Act.

Encouragement for pre-market engagement with suppliers to develop procurement approaches.

Introduction of Open Frameworks allowing flexibility to appoint new suppliers over a maximum term of 8 years.

Dynamic Markets introduced for quick access to a list of qualified suppliers, suitable for emerging and niche markets.

A central register for Frameworks and Dynamic Markets to increase transparency and reduce duplication.

Direct award of contracts without competition is permissible under certain circumstances, such as extreme urgency or single supplier capability.

New power for a Minister of the Crown to allow direct awards in cases of life or public order/safety protection.

Requirement for a mandatory transparency notice before direct awards to ensure market confidence.

Encouragement for quick informal competitions by contracting authorities for public confidence in contract letting.

Changes to the supplier exclusion regime and the workings of the debarment list will be covered in part four of the series.

New requirements prior to awarding a contract and publishing requirements following the award.

The material is for learning and development purposes and should not be relied upon as legal advice.

Availability of fact sheets for exemptions on gov.uk for various sectors including concessions, defense, and utilities.

Transcripts

procurement act

2023 knowledge drop series for

Contracting

authorities changes to procurement

procedures and roots to Market part

three of

six in part three of this knowledge drop

series we will cover the competitive

flexible procedure and the ability to

design a fit for-purpose

procedure the flexibility offered by

open Frameworks and dynamic markets

changes surrounding direct

Awards flexibility in

procedures the several prescriptive

procurement procedures available under

the previous regulations will be

replaced by a simplified and more

flexible approach reducing the number of

competitive procedures to just two the

open and the competitive flexible

procedure the open single stage

procedure has been retained and broadly

operates in the same way as it did under

the previous

regulations however the competitive

flexible procedure is a new multi-stage

procedure that allows Contracting

authorities the ability to design their

own procurement processes to best suit

their requirements local needs and to

get the best from the market whilst

meeting the broader requirements of the

procurement act this procedure provides

the opportunity to engage with suppliers

during the process through a range of

tools such as negotiation and dialogue

which can help to drive Innovation

resulting in a fit for-purpose solution

and achieving value for money the

freedom and flexibility of this new

procedure is a big change and offers the

opportunity to unlock the benefits of a

more commercial approach allowing

procurement and Commercial colleagues to

use their

expertise minimum time scales for key

stages of the procedures have been

mandated in the procurement Act and

Contracting authorities are required to

consider the nature and complexity of

the requirement to ensure that the

procedure is

proportionate the detailed process for

procurements under this procedure must

be made clear in the tender notice or

Associated tender documents and

Contracting authorities are encouraged

to undertake pre-market engagement with

suppliers to help develop your

approach you should work with your

procurement and Commercial colleague

to design a process that best suits your

requirements drives best value and

achieves organizational and social

benefits Frameworks and dynamic markets

a framework is a public contract between

a Contracting Authority and one or more

suppliers for the future Award of

contracts the framework will set out

terms and conditions for future

requirements and the basis on which

Awards can be made

which will be quicker via call-off

contracts than via a full procurement

process in addition to Conventional

Frameworks which are closed to new

suppliers joining once awarded and are

limited to a 4-year maximum term the

procurement act introduces an open

framework which means that Contracting

authorities will have the flexibility to

appoint new suppliers through a scheme

of Frameworks which can run for a

maximum of 8 years this means means that

suppliers have the opportunity to apply

at different stages throughout the term

of the open framework it also means that

the supplier base can be refreshed to

ensure that the open framework remains

competitive during the life of the

agreement without having to undertake a

full tendering

exercise Dynamic markets have been

introduced which are similar to Dynamic

purchasing systems DPS in that they are

a list of qualified suppliers who are

eligible to participate in future

procurements suppliers can join at any

time meaning that they are open to new

entrance and innovative solutions can be

made available

quickly these can be used for a wider

range of goods services and works but

are most suited to emerging and Niche

markets for Specialist or complex

requirements a central register will be

made available to offer full visibility

of the Frameworks and dynamic Market

that exist bringing greater transparency

across the public sector and helping

your procurement and Commercial

colleagues to identify available routs

to Market whilst reducing

duplication direct

award direct Award of a contract to A

supplier without competition is only

allowable in certain circumstances as

laid out in the ACT such as in times of

extreme and unavoidable urgency or where

only a single supplier can deliver due

to technical or intellectual property

reasons the grounds are broadly

unchanged from the existing

regulations Additionally the procurement

act includes a new power for a minister

of the crown through regulations to

allow direct Award of contracts when

action is necessary to protect life or

to protect public order or

safety while direct award is permissible

in certain circumstan es Contracting

authorities are encouraged to run quick

informal competitions wherever possible

this will give the public confidence

that contracts are being let

appropriately even in situations of

urgency a mandatory transparency notice

must be published before a direct award

is undertaken to highlight to the market

your intention to undertake the direct

award and the reasons for doing so you

should work with your procurement and

commercial teams if you believe you have

a direct award

requirement recap you should Now

understand the changes to the

procurement procedures and routes to

Market including the competitive

flexible procedure and the ability to

design a fit for-purpose

procedure the flexibility offered by

open Frameworks and dynamic

markets additional grounds where a

direct award can be

used the requirement to publish a

mandatory transparency

notice in part four of this knowledge

drop series we will cover the changes

around the supplier exclusion regime how

the debarment list will work the new

requirements prior to awarding a

contract the new publishing requirements

following the award of your

contract this material has been produced

for the purpose of Learning and

Development and does not constitute and

should not be relied upon as legal

advice this material is accurate as at

October

2023 fact sheets for the following

exemptions can be found on

gov.uk concessions light touch defense

and security Northern Ireland Wales

schools

utilities end of animation