Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what steps he plans to take to ensure that the Public Procurement Contract Regulations 2015 deliver an increase in not-for-profit delivery of public procurement contracts.

The Public Contracts Regulations 2015 came into effect on 26 February. They will provide a much more modern, flexible and commercial approach compared to the previous regime. Outdated and superfluous constraints have been removed, and many new reforms have been included to streamline and modernise public procurement.

We have also introduced further measures to remove barriers facing small and medium-sized enterprises. Together, these will make it easier for all suppliers to bid for and win public procurement contracts.

The new measures will increase the visibility of low-value contract opportunities and make the bidding process quicker and simpler across the wider public sector. Complex forms, such as Pre-Qualification Questionnaires, are now abolished for low value contracts. Everyone in the supply chain must comply with 30-day payment terms, including suppliers and sub-contractors, and public bodies must publish an annual late payment report, making their accountability more transparent.

For a range of services that are commonly delivered by public service mutuals (such as social and cultural services) commissioners will also have the option of using a ‘mutuals reservation’. This grants public bodies the ability to limit competition to mutuals and social enterprises that meet the tests set out in the directive. This means many mutuals will be able to win their initial contract without having to compete with more established players, allowing them to establish and grow as a business during their first 3 years.