BSSEC CIC: New Procurement Legislation and NPPS Maximising Procurement Spend with VCSEs
25th April 2025
In the West Midlands, the procurement world has changed. Whether we are from the social economy, public sector, or private sector, we need to consider how we are going to be doing things differently. The headline is that VCSEs have to be considered both as part of the procurement process but also that there will be monitoring to ensure they are part of the supply chain.
The new procurement legislation aims to enhance the efficiency, transparency, and inclusivity of public procurement processes. A significant focus of this legislation is the integration of the National Procurement Policy Statement (NPPS) National Procurement Policy Statement – GOV.UK to maximise procurement spend with Voluntary, Community, and Social Enterprises (VCSEs). This report outlines the key aspects of the new legislation, the objectives of the NPPS, and the implementation strategy.
What’s new!
Transparency and Accountability: The legislation mandates greater transparency in procurement processes, ensuring that all stages are documented and accessible to the public. This includes clear criteria for awarding contracts and regular audits.
Inclusivity and Diversity: Emphasis is placed on promoting diversity by encouraging the participation of small and medium-sized enterprises (SMEs) and VCSEs in public procurement.
Sustainability: The legislation incorporates sustainability criteria, requiring that procurement decisions consider environmental and social impacts.
The NPPS makes it clear that social value should be maximised and that by prioritising procurement spend with VCSEs they will be seeking to impact on social cohesion and poverty, employment, local economies and the environment. The statement highlights the value that the sector brings and the innovative approaches that are taken to address society’s issues.
What should you be expecting to see?
Capacity Building: Training programs will be established for procurement officers to understand the benefits and processes of engaging with VCSEs. This includes workshops, online courses, and resource materials. There will be a continuation of targeted training for VCSEs – look out for this!
Partnership Development: Public sector bodies will be encouraged to develop partnerships with VCSEs. This involves creating networks and forums where VCSEs can showcase their capabilities and engage with procurement officials.
Monitoring and Evaluation: A robust monitoring and evaluation framework will be implemented to track the progress of procurement spend with VCSEs. Key performance indicators (KPIs) will be established to measure success and identify areas for improvement. How good is your data capture? You might want to invest in this?
Policy Integration: The principles of the NPPS will be integrated into existing procurement policies and guidelines. This ensures a cohesive approach across all public sector bodies. Watch out for guidelines that each public body will be required to produce.
BSSEC would like to see incentives and support available to VCSEs in the region and there are especially opportunities available through social finance that could underpin sector developments.
There will be many changes over the next few months, key stakeholders will need to consider the social outcomes that will become part of procurement, whether your role is a commissioner, procurement professional, or contract holder. BSSEC will continue to monitor progress and highlight good practice and opportunities.
BLOG authored by Sarah Beaumont | Director, BSSEC CIC | Connect | Email