Despite improved transparency, a Parliament committee has found that inconsistency, bureaucracy, and inflexibility are still creating challenges for small businesses and third sector organisations looking to participate in public procurement.
A decade on from the introduction of the Procurement Reform (Scotland) Act 2014 (the Act), Holyrood’s Economy and Fair Work Committee has explored how the Act is operating.
Intended to support economic growth with procurement systems which were transparent, fair and business friendly, the Act put in place regulation for public procurement contracts above certain financial thresholds.
During its inquiry, the Committee heard from businesses and the third sector, as well as local authorities and the Scottish Government.
The Committee found that while the Act’s improvements to transparency were welcomed, there were still challenges which made navigating public procurement difficult, with one witness giving the Act a “C+ for its performance.”
Challenges experienced by witnesses included inconsistency across contracting authorities and heavy bureaucratic load.
The Committee’s report makes a number of recommendations to improve the system including:
- Ensuring that the Public Contracts Scotland website is updated to make it once again “best in class”.
- The Scottish Government should work with contracting authorities to drive consistency and reduce administrative burden.
- A uniform process for the provision of feedback should be developed.
Speaking as the report launched last week, Committee Convener Claire Baker MSP said: “Public procurement plays a vital role in the Scottish economy, involving small business, the third sector and public bodies.
“But with more than ten years now passed since the Act came into force, it is time to reflect on whether the ambitious aims are being met.
“There is no doubt that the Act has had a positive impact on increasing transparency of procurement processes which of course is to be welcomed. But for too many businesses, especially new or small businesses, there is still confusion and inconsistency. all of which is causing a barrier to those who may want to engage.
“Our report calls for a number of changes which would have a real impact to ensure that the bureaucracy and inflexibility can be addressed.”
During its inquiry, the Committee also found that the Act had contributed to an increase in Scottish procurement. However, the report makes clear that the Committee believes more can be done to increase local procurement.
The Committee noted the results from the community wealth building pilot areas and called for the principles and lessons learned to be fully embedded in procurement processes.
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