The government will change the procurement process for bidding for public contracts as part of moves to make it easier for civil society organisations to win business.
The Cabinet Office this week announced that it would amend the scoring process used in deciding who wins contracts to increase the weighting for bringing benefits to the local community.
This element will be increased from 10 per cent to 20 per cent of the scoring process for contracts worth £5m or more “ensuring procurement, whether from UK or international providers, helps support communities”, the Cabinet Office said.
It said it wanted the government contract market, which is worth £90bn a year, to support local communities in areas such as helping people develop new skills and support young people into apprenticeships or work placements.
The department said the rules had been simplified and the threshold raised for these requirements to contracts of more than £1m so they would not typically apply to the work “smaller firms and local social enterprises are bidding for”.
The Cabinet Office said: “This will better allow both smaller businesses and civil society to showcase their innovation and the benefits they are already delivering in communities.
“The changes will also help smaller, scaling and innovative businesses and civil society organisations who have so much to offer the public sector, but often find themselves locked out of contracts because of layers of red tape and burdensome requirements, which larger organisations know how to navigate.”
Jo Reilly, associate director of policy, public affairs and research at the National Council for Voluntary Organisations, said she was pleased to see the government engaging with civil society on public procurement reforms.
“Social value is inherent to civil society’s purpose because we exist to deliver public benefit and create positive change in communities,” she said.
“The value we create is broad and includes supporting those furthest from the labour market into work, such as employment support, volunteering and trusted relationships with those experiencing barriers.”
But she said the success of the reforms would depend on the implementation.
“Civil society organisations delivering public services need sufficient funding to enable good employment practices and sustainable delivery,” she said.
The new rules will apply to central government procurement processes from 1 January, with detailed technical guidance due to be published in the autumn.