Public sector procurement is how public sector organizations buy goods and services from suppliers. The process is designed to ensure purchases are transparent, ethical, and deliver the best value for taxpayers. Since Brexit, the UK’s procurement rules have been updated under the Public Procurement Regulations 2024, aiming to simplify processes, promote transparency, and encourage competition, especially for small and medium-sized businesses (SMEs). 

 

Understanding the Need 

The first step in any procurement process is identifying what’s needed and setting clear standards for quality and performance. This helps ensure that only relevant, high-quality products or services are considered – saving time and cutting unnecessary costs. 

Example: Let’s say a local council needs to procure waste management services. The council first defines its needs – regular waste collection, recycling services, and landfill management. They also set specific standards, such as requiring the use of environmentally friendly vehicles. By establishing these needs upfront, the council avoids receiving bids that don’t meet its sustainability goals. 

 

The RFP or ITT Process 

Once the needs are clear, the next step is to invite bids from suppliers. This is done through a Request for Proposal (RFP) or Invitation to Tender (ITT), which outlines the project requirements, tasks, deadlines, and other details. 

Bids are posted on public platforms like Find a Tender, which replaced the EU’s Official Journal for UK public contracts). Public bodies can choose between various procurement routes, such as open procedures, restricted procedures, or competitive dialogue, depending on the type of contract. This ensures the process is fair, transparent, and encourages competition. 

Example: A health authority in the UK might post an ITT on Find a Tender for the procurement of new hospital beds. The document would include details like bed specifications, delivery schedules, and maintenance requirements. Multiple suppliers could then submit their bids, and the authority would evaluate them based on cost, quality, and compliance with NHS standards. 

 

Framework Agreements and Closed Tenders 

Sometimes, instead of advertising contracts publicly, public sector organizations work through framework agreements. This allows them to select suppliers from a pre-approved list who are trusted to deliver certain services. Framework agreements are useful for ongoing needs and simplify procurement by reducing the need for a new tender every time. 

Example: The UK government frequently uses framework agreements for IT services. For instance, a government agency might establish a framework with a pre-approved list of IT vendors to provide software development services over a four-year period. Each time the agency needs new software, it can issue a “mini-competition” within the framework to select a vendor, saving time and reducing administrative effort. 

 

Selecting a Vendor 

Once bids are submitted, the next step is to evaluate them. The procurement team typically looks at both price and quality, while also considering social value – ensuring contracts deliver benefits like environmental sustainability and community improvement. 

Sometimes, the process includes interviews or site visits to ensure the supplier can meet the requirements. Successful vendors will clearly show how they meet the project’s needs, often proposing innovative solutions to stand out from the competition. 

Example: In a procurement for school catering services, a vendor distinguished itself by not only meeting the nutritional standards but also proposing a plan to source 80% of the ingredients from local farmers. This added value in terms of community support helped the vendor win the contract, even though their pricing wasn’t the lowest. 

 

How AI Transforms Bidding for Public Sector Contracts  

Winning government contracts can be competitive, but it’s achievable with the right approach.  AutogenAI can give you an edge by speeding up your writing process and helping you craft more compelling bids. These tools analyze vast amounts of information quickly, allowing businesses to respond faster and more accurately to public sector opportunities. 

Public sector procurement is a highly competitive space, but AI can change the game. With AutogenAI, you can create clearer, more persuasive bids in less time, increasing your chances of success by up to 30%. Want to improve your bid writing process? Contact us today to learn how AutogenAI can help you win more public sector contracts.