Procurement in many Public Sector organisations, is often seen as a barrier – the slow, risk-averse, ‘Computer Says No’ department weighed down by ‘red tape’ to protect the public purse.
For years, public sector procurement has been associated with inefficiency, inflexibility and poor value for money due to outdated and cumbersome processes.
The Procurement Act 2023 (PA23) aims to help shift this perception by introducing the Competitive Flexible Procedure (CFP). This approach gives contracting authorities freedom to design a procurement process tailored to the specific needs and outcomes of their requirement (assuming the Act’s fundamental Principles are still adhered to).
With this new flexibility comes a significant opportunity. Contracting authorities can now apply principles of process excellence – such as agility, transparency and value creation – to transform procurement from a compliance exercise into a strategic enabler. By embedding continuous improvement and data-driven decision-making throughout the procurement lifecycle, the CFP can unlock better outcomes and enhanced efficiency.
Let’s explore how process excellence and the CFP can work together to deliver smarter procurement – and why there’s no better time to start.
From Compliance-Driven to Value-Driven Procurement
The PA23 reshapes the narrative that public sector procurement is as flexible as a brick. Through a CFP, authorities are now empowered to design their end-to-end procurement processes to align with project complexity, market dynamics, and stakeholder needs. At 4C, we’ve seen this new flexibility materialise in real time within our client work – however, we can see further potential to be unlocked by integrating process excellence principles, with a few key examples below:
- Map and streamline procurement workflows
- Shorten end-to-end procurement timelines, outside of the minimum mandatory tendering timescales
- Create new procurement standards for high-performing practices
- Embed feedback loops within a procurement team for iterative refinement of the procurement process design, resulting in improved reception of the tender from the market and an improved tendering outcome.
Designing Fit for Purpose Procurement
Imagine designing a CFP for a high-tech infrastructure project. Using process excellence tools and philosophies, the procurement team can create a modular process with clear gate reviews, supplier collaboration sprints, and award criteria aligned to fundamental metrics, such as quality and deliverability timelines – not just who can offer the lowest price.
Building on this approach, process mapping tools can be used to visualise the entire buyer-supplier journey through the modular process. By pinpointing key interaction points, they clarify when and how to engage suppliers throughout each collaboration sprint.
Following the tender’s conclusion, the procurement team can use more advanced techniques, such as value stream mapping and root cause analysis, identify where improvements can be made in each phase of the delivery. These methods help prioritise improvements that directly support quality and delivery timelines, while also addressing the recurring delays and bottlenecks that often hinder delivery in complex infrastructure projects.
The Transparency Agenda
Ensuring transparency is a key focus for PA2023, therefore by embedding process governance principles, such as KPIs, project timeline metrics, and robust audit trails into the procurement design, authorities can ensure accountability without the bureaucracy.
Data is the oil that keeps the procurement machine running – at 4C, data quality and availability constraints are notable shortfalls we often uncover in our Diagnostic phase with new clients. However, process excellence supports this through data-centric process monitoring and dashboarding via the management information produced from a suitably measured procurement pipeline, enabling real-time insights into procurement performance.
Concluding Thoughts
PA2023 was a big shake-up to how procurement is done in the public sector and offers a real opportunity for organisations to embed better practices that benefit all the parties involved in a procurement across the buyer-supplier spectrum.
The Competitive Flexible Procedure gives contracting authorities the tools to break free from the notoriously regimented and restrictive practices of public sector procurement. However, this freedom to be innovative shouldn’t compromise the integrity of the fundamental objectives of public sector procurement – to ensure the taxpayer’s purse is used responsibly and for maximum public benefit. Without key Process excellence tools and techniques, such as E2E process mapping, feedback loops, and continuous improvement, flexibility can turn into fragmentation where compliance can fall through the cracks.
GET IN TOUCH WITH OUR TEAM TODAY
To truly unlock the potential of PA2023, contracting authorities must embed process excellence at the centre of their procurement strategy. Reach out to Ross Hodgkins, Darren Blackburn, or Will Gibbs to learn more. Â
