Aspire Community Works, a UK-based community enterprise, is urging the UK Government and devolved nations to address inequities faced by smaller organizations in the public procurement system. In its #BetterforUs campaign, Aspire is calling for a review of access to justice within the system.
The organization’s new report, Public Good Procurement 2024, published today, highlights the significant barriers faced by small organizations when challenging procurement decisions. Aspire, drawing from its own experience as a community business bidding within the public procurement process, identifies a critical gap where small businesses and mission-led enterprises are effectively excluded from seeking redress due to the high costs of legal challenges.
These costs, which can reach hundreds of thousands of pounds, prevent small organizations from holding contracting authorities accountable for errors in the procurement process. This financial burden also acts as a barrier to their involvement and prevents improvements from being made by public authorities as a result of lessons learned.
As a solution, Aspire recommends that the Government consider options such as establishing a small business tribunal, a self-funded Ombudsman system, or using the appeals process within the NHS Provider Selection Regime as a model. These alternatives would offer a lower-cost and more accessible means for small businesses to challenge unfair decisions and enhance their involvement within the system.
Dr. Katharine Sutton, Director of Aspire Community Works, stated, “The cost of taking a procurement case exceeds the turnover of organizations such as ours. The current procurement system is failing social enterprise and small businesses, leaving poor decisions unchallenged and no improvements made.” She added, “Giving small organizations the power to challenge unfair decisions will not only bring justice, but will also drive real, needed change in how public contracts are awarded. It’s time to fix this broken system and ensure public procurement works for everyone.”
For further information, please contact Aspire Community Works at 020 703 4433 or visit their website at www.betterforus.org.uk.
About Aspire Community Works:
Aspire Community Works is a community enterprise dedicated to promoting fair working conditions and tackling inequality in the labor market. Through public procurement and advocacy, Aspire seeks to build stronger communities and create sustainable employment opportunities for disadvantaged groups. Trust for London supports Aspire’s policy and campaigning work, with the majority of its income derived from public procurement.
The Government has recently announced that the Procurement Act 2023 will come into force in February 2025. It has delayed its implementation to draw up a new National Procurement Policy Statement and is currently consulting on this issue. Aspire is calling on the UK Government to incorporate the Sustainable Development Goals as the golden thread to run through all procurement in the UK.
In the UK, procurement is devolved, and the report outlines the differences in approach within the UK.