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New guidance document: Procurement after ‘no deal’

Figurines of construction workers move star on EU flag

As the political and legal situation around Brexit remains dynamic, the possibility of the UK leaving the European Union without a negotiated Withdrawal Agreement – a ‘no-deal Brexit’ – still exists. Until an alternative is legally formalised by both the UK and the remaining EU Member States, the current default position is for the UK to leave the EU without a deal.

Many businesses will have questions around the possible implications of a ‘no-deal Brexit’ and how they can prepare for this eventuality. Therefore, drawing on our 35 years of procurement experience, BiP Solutions is pleased to announce the publication of our new factsheet, ‘Procurement after “no deal”: What buyers and suppliers need to know about preparing for a “no deal Brexit” scenario.’

The seven-page document sets out clearly and simply the key questions that both buyers and suppliers are likely to have around the possibility of ‘no deal’ – and the current guidance that exists in these areas. The factsheet answers such questions as:

  • Where will public sector organisations publish tender notices if there is a ‘no deal Brexit’?
  • How might the procurement process change, and what will the effect be for supply chains?
  • Where will suppliers be able to find tender opportunities?
  • What steps will businesses need to take to continue to supply services to EU Member States?

Download your copy of the factsheet here.*

To view the latest procurement news and updates, visit BiP Solutions’ dedicated news and Brexit pages.

*Updates will follow to reflect the changing situation.

Spring Statement 2019

Red briefcase

The Chancellor has today delivered his Spring Statement. Against the background of continued uncertainty around the UK’s departure from the EU, what will probably be seen as the main message of the Statement is that the Chancellor’s so-called ‘war chest’ of around £26.6bn is earmarked for preparations for a ‘no-deal Brexit.’

If the possibility of a ‘no deal’ exit is removed with the EU’s agreement, it will free up a significant amount of money to be spent in areas such as healthcare and education. However, as our last update noted, ‘no deal’ remains very much a possibility, in spite of this week’s parliamentary vote.

If a Brexit deal is agreed, the Chancellor has committed to a full, three-year spending review before Parliament’s summer recess, ahead of the next budget.

We look at a few other key announcements from the Statement below.

Housing & construction

The Government has made up to £3bn available to housing associations in England, through the Affordable Homes Guarantee Scheme, to support delivery of around 30,000 affordable homes.

In addition, £717m is earmarked for constructing 37,000 homes in London, the Oxford-Cambridge Arc and Cheshire.

The Chancellor also said that a National Infrastructure Strategy will be published along with the Autumn Budget.

For more on the implications of the Statement for the construction industry, see the latest Construction Online update.

Local areas

Alongside the above-mentioned areas for housing development, the Statement announces up to £260m for the Borderlands region, which comprises which comprises Dumfries and Galloway, the Scottish Borders, Northumberland, Cumbria and Carlisle City. There will also be £60m of investment in ten cities and local areas across England, from the ‘Transforming Cities Fund.’

Technology & innovation

While the major news in terms of technology may be around the Government’s planned reviews of digital advertising and the dominance of ‘tech giants’, there were announcements in other areas too, with over £200m earmarked for science and innovation projects. Major funding has been granted for state-of-the-art laser technology projects in Oxfordshire, genomics research and industry in Cambridge, and £79m for a supercomputer to be developed in Edinburgh.

Skills & jobs

The last Budget included updates to apprenticeship reforms. These mean that, from 1st April, employers will see the co-investment rate they pay reduced from 10% to 5%, while levy-paying employers are “able to share more levy funds across their supply chains”, with the maximum amount rising from 10% to 25%.

The Chancellor also reiterated that the previously-announced £37bn National Productivity Investment Fund, covering areas such as roads, the rail network and full-fibre networks, will help boost productivity.

Sustainability & environment

Sustainability and efficiency are one of the major areas of focus in the Statement, with the Chancellor pledging to increase the amount of ‘green gas’ in the National Grid. Additionally, from 2025, all new homes will be ‘future-proofed’ with low carbon heating, as opposed to fossil fuel-based heating systems.

The Statement also announced a ‘call for evidence’ specifically focusing on the benefits of energy efficiency and carbon reduction for SMEs. The results of this will lead to SME-specific investment commitments.

Brexit: What happens now for procurement?

Man looking at crossroads with UK flag colours

[Updated: 14/03/2019]

Although the outcome of two major parliamentary votes on Brexit is now clear, very little has actually changed legally – for now. A lot remains to be decided over the coming days and weeks, and various Brexit scenarios remain possible. Here we briefly outline the possibilities and what they might mean for UK procurement.

For more detail on the implications of the different possible outcomes, download our five-page factsheet, ‘Procurement After Brexit.’

What has happened and what is next?

This week Parliament has voted to reject both the withdrawal deal that Prime Minister Theresa May negotiated with the EU, and the possibility of leaving the EU without a deal. There will now be a further vote (on 14th March) as to whether to request an extension to Article 50 and delay the date the UK leaves the European Union. A third vote on the previously-negotiated deal is now scheduled “before or on” 20th March.

Even though parliament has voted to reject a ‘no-deal Brexit’, the UK could still leave the EU without a deal if the ‘EU27’ countries do not agree to extend the Article 50 negotiation period.  Moreover, the scope and effect of any proposed extension remains to be seen. The current legal default position is for the UK to leave the EU without a deal on 29th March.

What if the UK does not leave on 29th March?

It’s worth reiterating that, until the UK formally leaves the EU, it is a full member of the EU. This means that, if there is an extension to Article 50, there will be little legislative difference from the current situation – pending any changes in UK or EU law in the interim.

When the UK does leave the EU, current guidance is that procurement rules as they stand now will be written into UK law under the European Union (Withdrawal) Act 2018. Under current guidance, any procurement procedures that are ongoing when the extension period ends will continue under the same regulations as now until an award is made.

However, the possibility of ‘no deal’ remains real in spite of the recent parliamentary vote, which has no legislative force.

What if there is a ‘no-deal Brexit’?

The Government has repeatedly assured that most regulations around procurement will remain the same regardless of the outcome of Brexit, as the majority of the relevant EU regulations are already written into UK and Scottish law.

It was also announced recently that the UK would be able to join the Government Procurement Agreement (GPA) as an independent member if there is no deal, meaning that UK businesses will be able to continue to bid for contracts in the GPA’s member countries and blocs.

However, in other ways a ‘no-deal Brexit’ would represent major change for UK procurement. UK companies wishing to continue to work with the EU will need to apply for an EORI number. Given the possibility of ‘no deal’ – and that the Government advises that applying for an EORI number takes “around 10 minutes” – companies may want to consider the importance of applying for an EORI number even if it is ‘just in case.’

There is also the possibility that if there is a ‘no-deal’ Brexit, UK organisations will no longer be able to access OJEU. To learn more about the full implications of this, how companies can reduce the amount of action they will need to take, and an in-depth examination of the consequences of different possible Brexit scenarios, download our factsheet, ‘Procurement After Brexit: Deal or No Deal.’

A ‘no deal’ exit is now more likely than before, and the situation remains subject to much change over the next week. For the latest news, its specific consequences for procurement, and Government guidance documents, visit our dedicated Brexit page.

To learn more about how BiP Solutions can help with your contract and tendering needs, visit www.bipsolutions.com or call (+44) 0141 332 8247.

New Brexit Guidance for Procurement

Business people figurines shaking hands on map of Europe

The Government has released new guidance specifically aimed at those working in public procurement as to what the effect of the various possible Brexit outcomes will be for the industry.

The Procurement Policy Note (PPN), ‘Preparing the UK for Leaving the EU’, sets out guidance that will be applicable as soon as the UK leaves the EU, scheduled for 29th March. The guidance aims to cover all potential outcomes, whether or not the UK has negotiated a withdrawal deal with the EU. The PPN clarifies areas including how procurement notification requirements in the different constituent countries of the UK will be affected, the currently assumed length and scope of an ‘implementation period’, and – most crucially – the changes that suppliers will have to make if there is a ‘no-deal’ exit.

The PPN and explanatory notes can be accessed here.

BiP Solutions is specifically named in the explanatory ‘frequently asked questions’ supplement to the PPN, as one of the first e-senders to announce plans to integrate with the new, UK-specific tenders notification service that may supersede the Official Journal of the EU (OJEU) in the case of ‘no deal.’ This represents a potential major change for UK suppliers and how they do business. To find out more, read our recently updated guidance document, ‘Procurement After Brexit: Deal or No Deal‘, which complements the Government’s PPN.

For the latest updates on what Brexit means for procurement, visit BiP Solutions’ dedicated Brexit page.

Registration necessary to work with EU after Brexit

Woman at verify login page on computer screen

As preparations for the UK’s departure from the EU intensify, procurement professionals should ensure they are aware of the requirements to register for an Economic Operator and Registration Identification (EORI) number.

Late February’s announcement that UK businesses will be able to continue to trade with members of the GPA in the event of a ‘no-deal Brexit’ is undoubtedly welcome. However, businesses need to take steps to make sure that they will individually be able to do business internationally after 29th March. The primary requirement for businesses looking to continue to work with the EU will be to have an EORI number.

An EORI number is a requirement for moving goods into or out of the EU. The purpose of an EORI number is to allow HMRC to identify your company and collect the appropriate duties. If you do not have an EORI number, you may face delays and even increased costs, for example storage fees if HMRC cannot clear the goods involved in your transaction.

In the event that the UK leaves the European Union without a negotiated deal, you will need an EORI number to continue trading with the EU. This requirement will be effective as of ‘exit day.’

You can apply for an EORI number now even if you do not use it. While the situation around a potential deal between the UK and EU remains dynamic, the possibility of ‘no deal’ means that businesses that currently work with the EU may want to consider the importance of an EORI number. The Government advises that the application process should take less than ten minutes. Ensure that you have all the information you need to apply by viewing the Government’s advice here.

To learn more about how public procurement could be affected by various possible Brexit scenarios, click here to view BiP’s updated factsheet, ‘Procurement After Brexit: Deal or No Deal.’

International market remains open after Brexit

Business people shaking hands in airport with world map

It has been confirmed that British businesses will be able to continue bidding for contracts from across the world after the UK leaves the European Union.

In the event of a ‘no-deal’ Brexit, the UK will join the Government Procurement Agreement (GPA) as an independent member, as confirmed by the members of the World Trade Organization (WTO).

The 19 members of the GPA include such major economies as Japan, the USA, Canada, Israel and the EU. The UK’s membership of the Agreement will mean that British businesses will be able to continue to bid on public sector contracts from other countries on much the same terms as currently. The reciprocal agreement allows businesses from across the world to continue to bid on £67 billion worth of public sector contracts in the UK, while British suppliers will be able to bid on £1.3 trillion worth of contracts in many different countries.

Grahame Steed, eSourcing and Business Intelligence Director at BiP Solutions, said:

“Clarity on the UK’s membership of the General Procurement Agreement post-Brexit is positive news. The international market for public sector contract opportunities is massive, so businesses should be encouraged that this market remains open, even after the UK exits the EU.”

If the UK leaves the EU without a withdrawal agreement, the UK will join the GPA as an independent member as quickly as possible. There may be a short delay for the GPA to take legal effect in the event of a ‘no-deal’ exit, but this is likely to last less than a month and the Government assures that “disruption to businesses is likely to be minimal.” If a negotiated withdrawal deal between the UK and EU includes an Implementation Period, the UK will remain a member of the GPA under EU schedules.

To learn more about the full effect of different potential Brexit outcomes on UK procurement, and what suppliers can do to reduce the level of action they’ll need to take, read our updated guidance document, ‘Procurement After Brexit: Deal or No Deal’ here.

The full Government press release on GPA membership can be read here.

Brexit latest: publishing contracts if there’s no deal

Crowds representing UK and EU flags

After a tumultuous week in Westminster, the situation surrounding the UK’s exit from the EU continues to be dynamic. Although the ‘meaningful vote’ of 15th January has now taken place, and the Government has survived a no-confidence vote,  much remains to be decided and clarified – not least before the next vote, currently scheduled for 29th January.

However, preparations are underway for various outcomes, and what their effect will be for public procurement in the UK. At BiP Solutions, we are working hard behind the scenes to ensure it continues to be ‘business as usual’ for our customers post 29th March and are pleased to share the update below.

What has the Government said about ‘no deal’?

As previously described in a technical note published in September, the Government has stated that it will ensure that the regulation for public procurement will continue to function in the “unlikely event” of a ‘no-deal’ exit. Current regulations will be adapted as necessary to remain in operation, should this situation arise. The Government reassures that most procurement regulations “will remain exactly the same.”

What might change?

If the UK leaves the EU without a withdrawal deal being agreed, the key change for public procurement will be that contracting authorities would be required to send notices to a new, UK-specific e-notification service. This would replace the need to send to the EU Publications Office and Tenders Electronic Daily. Advertising in Contracts Finder, MOD Defence Contracts Online, Public Contracts Scotland, Sell2Wales and eTendersNI would remain a requirement, as is currently the case.

As a leading e-Sender, BiP Solutions has been working closely with the Cabinet Office to develop this new service.

What will reduce the level of action needed?

As we understand the Cabinet Office’s current guidance, contracting authorities which currently use an ‘e-Sender’, a third-party provider, to submit publications to the EU Publications Office will be able to continue with this approach, regardless of the outcome of Brexit negotiations. However, this is dependent on e-Senders also completing the integration process to send notices to the new UK-specific e-notification service, should this be enacted.

Simon Burges, CEO of BiP Solutions, said:

I am delighted to say that BiP Solutions were one of the first e-Senders in the UK to confirm to the Cabinet Office that we will integrate our services with the new UK e-notification service. This is great news for our customers, since any authority working with BiP will need to take very little action to change their current method of publishing contracts, unlike other e-Senders who may be required to publish notices manually.

This year, we celebrate our 35th anniversary and whilst our operation has grown considerably in size and scope over the years, our core values remain unchanged. We will continue to remain at the heart of the buyer/supplier relationship and support our customers through all stages of their procurement journey, and that includes providing advice and guidance – deal or no deal.

Contracting authorities who work with other e-Senders or who submit their notices directly to the EU Publication Office may need to publish their notices manually to the new UK notification service. Information as to how to do this has not yet been released, meaning that these organisations will have to await further advice depending on future developments.

To find out more about how BiP Solutions can help with your contract and tendering needs, visit www.bipsolutions.com or call (+44) 0141 332 8247.

New digital paths for health, work and business a major focus within the NHS Long Term Plan

Hospital working working on tablet computer

Earlier this month, the NHS published its Long Term Plan. The Plan details how the £20.5 billion budget settlement for the NHS, confirmed in the summer of last year, will be spent over the next five years.

For patients, the Plan focuses on delivering ‘the best start in life’ for everyone, community health, and allowing people to age well. From the perspective of the NHS itself, the Plan will focus on driving efficiency, both in terms of organisation and affording individual workers easier and more effective working practices.

A major focus of the Plan concerns digital transformation. This will include such innovations as the NHS App, allowing for a single way for patients to identify themselves across a range of local and national services.

Associated apps and digital solutions will no doubt be embraced wholeheartedly by a range of NHS institutions, as a recent iGov Survey found that 72% of respondents from the NHS would like to deliver patient health apps as part of their Wi-Fi solution, while more than two-thirds stated that patient access to online appointment bookings will be beneficial.

At BiP Solutions, we recognise both the challenges and opportunities presented by digital transformation facing healthcare buyers and suppliers today.

In fact, our most recent report considered the digital trends and innovative approaches playing a significant role in today’s NHS through boosting efficiencies and, crucially, saving lives. You can access a complimentary copy here.

It’s no secret that the NHS is a hugely complex organisation, with hundreds of separate but connected organisations, and navigating the ways they link, share information and work together can sometimes be difficult for NHS staff, let alone those seeking to work with NHS trusts. The digital transformation element of the Long Term Plan promises to ease the burden of the NHS’ complexity for patients and staff.

If you’re looking to cut through the difficulties of understanding how NHS organisations are related and talk to the right person to do business with, BiP Solutions’ Ingenium community can help. Our data community holds contact details for all senior decision-makers throughout the NHS, which we combine with a deep understanding of the NHS’ structure to deliver relevant and engaging digital marketing campaigns.

The Long Term Plan will reshape many NHS working practices, the ways patients interact with the NHS, and the way that business is done too. For businesses, it’ll therefore be important to keep up-to-date with the latest developments, as changes are set to happen throughout the NHS supply chain. An easy way for businesses to ensure they’re staying abreast of the latest changes is through Tracker’s business intelligence modules which offer an easy one-stop, complete source of information on public sector procurement.

Additionally, a major element of the Plan’s overhaul of working methods will be further innovations in terms of technology and equipment needed. For example, the Plan’s stated aims include new ways of managing and storing data, as well as novel methods of treating patients and providing care. With innovation a primary concern, it’s important that businesses are able to join conversations with NHS buyers earlier, to ensure that they can gain a real understanding of the requirement – or even shape discussion about the solution needed.

In fact, Gareth Rhys Williams, Government Chief Commercial Officer and Non-Executive Director at the Crown Commercial Service (CCS), said at our recent Procurex Scotland event that “early engagement is absolutely crucial.” He also noted that both buyers and suppliers should be encouraged to engage earlier to get the best out of a procurement exercise:

“If we don’t engage with the market, we won’t understand what the market can offer or what suppliers have developed for a different buyer elsewhere in the country. If we do not talk to suppliers then we miss out on opportunities and we will end up trying to procure something that they may not be able to deliver.”

How we can help

As mentioned before, Ingenium can put businesses in touch with key NHS stakeholders ahead of the tender process, helping conversations happen earlier.

Additionally, Tracker aids early engagement, thanks to easy viewing of upcoming contract renewals and recurring projects through ‘Market Leads’, meaning businesses can discuss these needs ahead of tender publication. Meanwhile, Tracker’s ‘Spend Analysis’ allows for an overview of what organisations are spending and with whom – helping businesses to shape future discussions by understanding how individual NHS trusts spend and work.

The transformation of the NHS via the Long Term Plan looks set to radically overhaul the way that the NHS, patients and businesses interact. We look forward to working digitally together with the NHS as the Plan unfolds.

Further reading

View the Long Term Plan here.

Access our latest Healthcare market report here.

To find out more about our solutions, please visit: www.bipsolutions.com

Scottish Budget 2018

Against the backdrop of uncertainty caused by the UK’s impending exit from the European Union, Finance Secretary Derek Mackay MSP has delivered the 2018 Scottish Budget (December 12th).

Describing it as a “fair and progressive budget” Derek Mackay presented a business-friendly package, while placing the protection of public services at the heart of this Budget Statement.

Below you can find a breakdown of key Scottish Budget 2018 figures in addition to which public sector opportunities await your industry.

SME

A £50 million ‘Town Centre Fund’ will provide much needed support for Scotland’s high streets. There will also be a cap put on business rates below inflation, providing a tax cut for small businesses, which Mackay described as “the most generous system anywhere in the UK”. The partnership between the private sector and the Scottish Government has played an important role in recent years, which was championed by the Cabinet Minister for Business, Fair Work and Skills Jamie Hepburn MSP at Procurex Scotland, in which he encouraged businesses to consider the welfare of local communities and the environment, calling on suppliers to “not be risk averse”.

Housing

An investment of £825 million -as part of an overall fund of £3 billion- will help deliver 50,000 affordable homes over the course of this parliament, which has been the cornerstone of Housing Minister Kevin Stewart’s construction agenda.

Education

Describing education as the Scottish Government’s “defining mission”, the Finance Secretary set out bold new proposals for Scottish schools. £180m will be used to close the attainment gap, including £120m, which will be directed towards headteacher budgets through ‘Pupil Equity Funding’. £600m will also be given to colleges and £1 billion has been secured for Scotland’s world-class universities. £214m has been set aside for apprenticeships and skills; providing a gateway in to employment for many of Scotland’s young people.

Healthcare

An increase of £730m will be provided to NHS Scotland, which is the equivalent to hiring 19,000 nurses, as Derek Mackay confirmed “health is a top priority for the government”, which accounts for almost half of the Scottish Government’s overall spending.

Local Government

The Scottish Government will provide “a real terms increase in the total local government settlement of over £210m” Mackay said, taking the local government budget to £11.1 billion. This will be welcome news for Fife Council executive director Keith Winter, who was a keynote speaker at Procurex Scotland, where he championed “social justice” as he encouraged councillors to adopt a global strategy moving forward.

GO Awards Scotland 2018/19: Celebrating Excellence in Public Procurement

Finalists took to the stage at the prestigious GO Awards Scotland 2018 event at Glasgow’s Marriott Hotel on 23 October 2018, to celebrate the people behind the country’s procurement success.

Among the guests were public sector buyers and their suppliers, continuing conversations that started earlier that day at Procurex Scotland, held in the SEC Glasgow.

This year, the GO Awards ceremony formed the glittering climax to Scotland’s Festival of Procurement and welcomed over 500 delegates from the Scottish public procurement community and its suppliers, who went head to head to win a coveted GO Award.

The GO Awards ceremony was hosted by BBC Scotland presenter Catriona Renton, who guided guests through the evening of presentations. Her first acknowledgement was of the hard work of this year’s judges:

Ainslie McLaughlin – Director of Procurement and Commercial, Scottish Government

Nikki Bell – Head of Commercial Policy & Project Assurance, Scottish Government

Martin Street – Strategic Sourcing Director, NHS National Services Scotland

Hugh Carr – Head of Strategic Procurement, Scotland Excel

Stephen Richardson – Head of eSolutions & CIO, APUC Ltd

Eddie Regan – Principal Procurement Consultant, PASS

The judging panel had to select winners and highly commended entrants from organisations across Scotland in twelve categories. Winners were announced in the following categories:

GO Best Service Award: Medium & Large Organisations – Warmworks Scotland

GO Best Service Award: Micro and Small Businesses and Third Sector Organisations – Re-Tek UK Ltd

GO Infrastructure Project of the Year Award – Transport Scotland (For entry: Forth Replacement Crossing)

GO Procurement Innovation of the Year Award: Taking the procurement function forward – University of Strathclyde, DHI, NHS NSS, Scottish Government

GO Procurement Leadership of the Year Award – Angus Council

GO Procurement Project of the &ear award (above £20m value) – Police Scotland

GO Procurement Project of the Year award (sub-£20m value) – Renfrewshire Council

GO Procurement Team of the Year Award: Central Government & Healthcare Organisations – NHS Scotland National Procurement Equipping Sourcing Team, working with NSS Health Facilities Scotland Equipping Team

GO Procurement Team of the Year Award: Local Government & Other Organisations – University of Strathclyde

GO Social and Community Benefit in Procurement Award Other Organisations – University of Edinburgh

GO Social and Community Benefit in Procurement Award: Central Government & Local Authorities – Scottish Government – SG Procurement, Contract Management & Capability Team

GO Emerging Procurement Talent Award – Scotland Excel

GO Excellence Scotland Award 2018/19 – Transport Scotland (For entry: Forth Replacement Crossing)

go awards tweets

The GO Awards Scotland Excellence Award was new for 2018/19 and, unlike the other categories, applicants cannot enter – as it recognises the very best overall submission drawn from each of the winners in this year’s Awards.

This category recognised the best of the best and the submission that most clearly demonstrated progress, innovation and achievement was the winner Transport Scotland for the Forth Replacement Crossing project.

When the Excellence Award was presented, Ms Renton praised the winner for all their effort:

“Congratulations to the team at Transport Scotland for their work on a now iconic Scottish structure. An outstanding achievement given the overall quality of this year’s Awards – a job very well done.”

Overall, the event was a tremendous success as guests also enjoyed a three-course meal and entertainment from celebrity magician Paul Martin.

Grahame Steed, Business Intelligence and eSourcing Director at BiP Solutions (event organiser) and GO Awards host, said:

“It’s been another tremendous year for the GO Awards Scotland, with many new entrants and returning organisations playing their part in driving up standards and innovation within public procurement. Well done to each of our finalists, and congratulations to those who have received one of the highly coveted GO Awards trophies – we look forward to even more competition next year!”

BiP would like to thank their event partner the Scottish Government and this year’s main event sponsors Orbis, Pertemps, Drummond Bridge, Pulsant and Simon Driscoll Consultancy Ltd.

To learn more about the National GO Awards National 2018/19, visit the GO Awards