Public Service - analysis_opinion_debate

New procurement plan is announced

Tuesday, January 12, 2010

A plan setting out how the government would use the £220bn spent by the public on third party goods and services to support growth and economic recovery has been outlined by the Chief Secretary to the Treasury Liam Byrne.

Published by the Office of Government Commerce (OGC), the document explains how procurement could be used to generate economic growth by supporting small and medium-sized enterprises, encouraging apprenticeships, training and youth employment, and reducing carbon emissions.

The OGC said that 95 per cent of government contracts are won by UK businesses so it was essential that this money should go towards helping support Britain's small businesses, as well as the drive to improve skills and tackle climate change.

The document also announced a voluntary charter to be set up between the government and key suppliers to help deliver these goals. Also, progress will be monitored by the OGC through 'performance metrics', against which all departments will be expected to report regularly, starting in spring 2010.

Byrne said: "Government spends £220bn on goods and services, 95 per cent of which goes to British firms. As well as maximising value for money, the OGC's plans will make sure that government procurement spending supports our small and medium-sized enterprises, encourages apprenticeships and better skills and reduces carbon emissions."

He added: "Government spending power will help to lock in the recovery by providing support and investment to the businesses up and down the country."
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This sort of comment makes the small business sector's blood boil. If Liam Byrne is serious about helping small business through Govt procurement, is he going to change OJEU procurement rules and stop asking small business to compete against big business with their last 3 years' accounts, their Equal Opportunities policy, Environment policy, H&S policy, evidence of risk assessments, etc., etc? Is he going to tell Govt departments that he is introducing a presumption that contracts will be awarded to SMEs rathe rthan big firms? No, he isn't. So the report will contain fine words, everyone will wag their heads and congratulate themselves and Procurement will just ignore it. Doing business with small firms by nature carries more risk (even if you do get a better service 9 times out of 10) and public servants are not up for putting their own career reputations on the line. Better to go for the one who can tick all the boxes.
ANM - cirencester

the new acedemy is going to be built at st athan in wales but the main contractor working on it will only use their supply chain companies, to qualify to work you have to be a large company allready how will this initiative work as it is the same all over the uk
peter obrien - peter obrien construction st austell