Future Water has told the Cabinet Office that a move from the Most Economically Advantageous Tender to the Most Advantageous Tender approach is critical in driving the best value procurement focused on project outcomes, not price.

The call comes in the Association's response to the Government Green Paper on Transforming Public Procurement published in December, which sets out proposals for a National Public Procurement Policy, streamlining current regulations, including those impacting on the water sector.

Future Water said one of the challenges has been to ensure that procurement regulations allow enough flexibility for purchasing teams to align the buying process with the outcomes agreed with the regulators across England & Wales, Scotland and Northern Ireland.

Commenting on the proposed establishment of a new unit to oversee public procurement with power to oversee and possibly intervene, Future Water said it would like to understand how such a unit would operate across the water sector where there are existing regulators for England & Wales, Scotland and Government Department for Northern Ireland.

David Smoker, Future Water Board member and Chair of the Associations Procurement Working Group said:

“This consultation represents a real opportunity to set the agenda for future procurement and ensure that sector wide performance commitments are aligned properly with buying decisions.”

Future Water’s response document says the Association:

• Supports the Government’s proposals to streamline procurement aligning them with value for money, the public good, transparency, integrity, efficiency, fair treatment of suppliers and non-discrimination.
• Agrees that public procurement should be a vehicle for achieving social & environmental goals;
• Believes that streamlining and simplifying the regulations is essential and where this related to the water sector the procurement process should be closely aligned with outcomes and performance commitments.
• Argues that the proposed reforms must be incorporated into the regulatory business planning process in order to support achievement of future performance commitments;
• Considers that transparency underpinned by the adoption of the Open Contracting Data Standard, along with the move to being completely digital – is fundamental to effective future procurement;
• Considers that a move from the Most Economically Advantageous Tender to the Most Advantageous Tender approach is critical in driving the best value procurement focused on project outcomes not price

Commenting on the consultation Paul Horton, CEO of Future Water said:

“The proposal to focus procurement on ‘Most Advantageous Tender’ (MAT) is a positive change and is more than just a reinforcement of the current measures. This shift will mean that the best tender in terms of value and performance against outcomes should be preferred over just the cheapest price.”

Future Water said a move to MAT offers a real opportunity to push the procurement process so that ToTex (Total Expenditure) is more prominent and maintenance rises up the agenda.

Alastair Moseley, Chair of Future Water’s Innovation Hub added:

“As we embark upon the second year of AMP7, and innovation takes centre stage with the help of the recently launched Ofwat Innovation fund, it’s great to see that procurement is being seen as a means to focusing on environmental, social goals alongside innovation, there has never been a better time to look beyond the UK horizon to water innovation.”

Click here to view Future Water’s Response to the Cabinet Office Green Paper Transforming Public Procurement  

Click here to download the Green Paper – Transforming Public Procurement