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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.

Business Growth in a Post-Brexit world

Many businesses may feel it is difficult to prepare for the coming months without knowing what will change on or after 29th March. Although the date the United Kingdom was scheduled to leave the European Union is fast approaching, it may seem that there is still relatively little certainty as to what Brexit means – either politically, or for business.

However, there are many areas of opportunity available to businesses regardless of the outcome of the coming weeks’ political decisions. Drawing on our 35 years of experience in public procurement, BiP Solutions have produced a new guidance document, ‘Opportunities and Trends for Business Growth in a Post-Brexit World.’ Drawing on recent announcements from the Chancellor’s Spring Statement, current guidance about the various possible outcomes for Brexit, and our expert knowledge of industry trends, the seven-page guidance document covers key areas that are set to provide multiple opportunities, both in the UK and across the world, over the months ahead.

Grahame Steed, Business Intelligence and e-Sourcing Director at BiP Solutions, said:

While the UK’s exit from the EU is creating a degree of uncertainty for businesses, the growth potential provided by the public sector at home and internationally remains vast. Now is the time to focus on identifying the right opportunities within this multi-billion pound sector, and engaging with the right organisations to ensure they are aware of what businesses can do to solve their challenges.

Read and download the latest guidance on upcoming trends and opportunities by clicking here.

To learn more about how BiP Solutions can help your business access opportunities in a range of sectors, visit www.bipsolutions.com.

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.

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.

What are CPV codes?

cpv codes

CPV codes are a system of classification for public procurement which uses standardised vocabulary to help procurement personnel classify their contract notices consistently and to make it easier for suppliers and contracting authorities to find notices.

CPV stands for Common Procurement Vocabulary and the system was developed by the European Union as a tool to improve transparency and efficiency in public procurement. Using a standardised coding format also makes it easier to facilitate the processing of tenders published in the Official Journal of the European Union (OJEU). The use of CPVs has been mandatory in the European Union since 1 February 2006.

The CPV system consists of a main vocabulary, which defines the type of contract; and a supplementary vocabulary, which adds further qualitative information about the contract. The main vocabulary is made up of approximately 9450 terms, listing goods, works and services which are commonly used in procurement.

Each CPV code has a nine-digit structure, with the first two digits representing the top-level categories, the next six representing ever more defined levels of classification, and a ninth digit verifying the previous digits. The more numbers from 1 to 9 a CPV code has, the more specific the item is; and the more zeros it has, the more general it is.

For example:

The first two digits identify the divisions (XX000000-Y);
The first three digits identify the groups (XXX00000-Y);
The first four digits identify the classes (XXXX0000-Y);
The first five digits identify the categories (XXXXX000-Y);
Each of the next three digits establishes a greater degree of precision within the relevant category, while the ninth and final digit serves to verify the previous digits.

Supplementary vocabulary is used to provide further qualitative information, and to expand the description of the subject of a contract. This vocabulary is made up of an alphanumeric code with corresponding wording allowing further details to be added regarding the specific nature or destination of the goods to be purchased.
The alphanumeric code is made up of a first level, which is a letter corresponding to a section; and a second level, which comprises four digits that define its attributes.

While CPV codes are vital in many aspects of public procurement, finding the correct code can sometimes be a confusing and time-consuming task. Thankfully, at BiP Solutions we have a free CPV code search tool to help you identify and categorise tenders which will save you countless hours which can be spent more productively.