Procurement
This procurement section highlights the different types of procurement being used by Government and sets out a number of opportunities for business and the public sector.
Public procurement has a key role to play in supporting and encouraging business innovation and in delivering innovative solutions that provide better public services and respond to societal challenges.
With an annual procurement expenditure of approximately £175billion, the UK Government has a unique opportunity to be lead user of innovation, developing and demonstrating new technologies, products, processes and services.
Through public procurement, public sector organisations can play an important role in encouraging the development of new technologies and services, putting the UK and in particular UK business at the forefront of innovation.
The following are activities to support public procurement offering opportunities for business and the public sector.
Small Business Research Initiative
SBRI is a programme led by the Technology Strategy Board, on behalf of Government, to support the next generation of products and services required by the public sector. Public sector organisations buy research and development services, helping to bring new technologies to market and leading to the possibility of future commercial procurement in the public sector. Developments are 100% funded and are targeted at specific identified needs in the public sector organisation, increasing the chance of exploitation. Suppliers for each project are be selected by an open competition process and will retain the IPR generated from the project, with certain rights of use retained by the contracting organisation.
For more information go to SBRI
Innovation Platforms
An Innovation Platform focuses on major policy and societal challenges such as climate change and an ageing population. These challenges are used as the stimulus for procurement action having to be taken by the relevant Government Department. Using the Innovation Platform approach, the Technology Strategy Board works with the relevant policy makers and procurement experts from government, with people from business, research, and regional organisations, to help define the scope of the challenge and options for how best to respond.
Once the challenge has been identified, appropriate activities are put in place, such as research and demonstration programmes, to stimulate business innovation and to ensure UK businesses are ready with innovative solutions to take advantage of future procurement opportunities issued by the Government Department.
For more information go to Innovation Platforms
Forward Commitment Procurement
Forward Commitment Procurement is a procurement approach to encourage innovative solutions whilst allocating and managing risk more effectively. It achieves this by providing business with crucial market information on performance and price coupled with assurances on future sales to reduce market risks. This enables business to invest against technical/development risk which it is best placed to handle. This results in the customer getting what it needs, when it wants at an affordable price. If suppliers cannot deliver to the required specification, the customer is no worse off (other than opportunity costs) and continues to purchase the existing technology.
For more information go to Forward Committment Procurement
Lean Markets Initiative
The Lead Market Initiative is a European Commission led activity. It is looking at the development of innovation-friendly markets by creating conditions to facilitate the translation of technological and non-technological innovation into commercial products and services.
The Lead Market Initiative will focus on six market areas:
- eHealth
- protective textiles
- sustainable construction
- recycling
- bio-based products
- renewable energies.
The Lead Market Initiative consists of coordinated priority actions in each market area. These are described in action plans for each area. The added-value of the initiative is about developing a prospective, concerted and focused approach of regulatory and other policy instruments.
The Commission is planning to launch a call for proposals in November 2008 to support the establishment and activities of public procurement networks. The aim of these networks would be to enable public procurers (national, regional and local authorities and bodies governed by public law) to improve their knowledge about innovative solutions that are available or being developed by suppliers, to allow a better coordinated and articulated dialogue with suppliers about the future needs of contracting authorities, and to realise the benefits of European cooperation in exchanging experience in procurement practices and in undertaking joint or coordinated actions.
For more information go to Lean Markets Initiative