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Aspire Community Works is calling on the UK Government and devolved nations to review the public procurement system, highlighting significant barriers that small businesses and mission-driven enterprises face when attempting to challenge unfair procurement decisions. This demand is part of Aspire’s #BetterforUs campaign, aimed at creating a more equitable landscape for smaller organisations, particularly those in the not-for-profit and private sectors.
New Report Unveils Barriers to Justice
In their newly published report, Public Good Procurement 2024, Aspire reveals the financial and legal challenges small businesses endure when engaging in public procurement processes. According to the report, these organisations are often blocked from seeking redress due to the exorbitant costs associated with legal challenges, which can amount to hundreds of thousands of pounds. This financial burden leaves many small businesses unable to hold contracting authorities accountable for mistakes or unfair practices.
Aspire’s lived experience as a community business bidding for public contracts sheds light on a crucial gap within the procurement system. Small enterprises, which make up a vital part of the economy, are effectively excluded from the process, unable to challenge errors or seek justice due to prohibitive costs. The current system not only discourages small businesses from participating but also prevents public authorities from learning from their mistakes and improving future procurement decisions.
Recommendations for a Fairer System
To address these inequities, Aspire Community Works is urging the Government to explore several solutions. These include the creation of a small business tribunal, similar to employment tribunals, or the establishment of a self-funded Ombudsman system, as seen in Northern Ireland. Another potential model is the appeals process within the NHS Provider Selection Regime, recently introduced in England. This system allows all providers, including small businesses, to seek an independent review of procurement decisions, regardless of the contract value.
By introducing these reforms, Aspire believes smaller organisations would have a fairer opportunity to participate in public procurement, bringing accountability and improvement to the system. The report suggests that a more accessible alternative to expensive court challenges would not only drive justice but also contribute to a healthier and more competitive marketplace.
Addressing the System’s Failures
Dr. Katharine Sutton, Director of Aspire Community Works, emphasized the financial burden faced by small businesses within the current procurement system:
“The cost of taking a procurement case exceeds the turnover of organisations such as ours. The current procurement system is failing social enterprise and small businesses, leaving poor decisions unchallenged and no improvements made,” said Dr. Sutton. “Giving small organisations 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.”
Aspire’s report argues that allowing smaller organisations to challenge unfair decisions will lead to more just outcomes, as well as greater innovation and fairness in public sector procurement. With the Procurement Act 2023 set to come into effect in February 2025, Aspire hopes to influence the upcoming National Procurement Policy Statement and the Government’s proposed National Procurement Plan.
Next Steps for Reform
Aspire is also advocating for the incorporation of the Sustainable Development Goals (SDGs) into the UK’s procurement policies as a guiding principle for future public sector contracts. The report details the varied approaches to procurement within the devolved nations, calling on the UK Government to adopt a more unified, SDG-aligned strategy. Aspire is encouraging policymakers to ensure that public procurement not only serves the economy but also addresses pressing social and environmental challenges.
With much of its income derived from public procurement, Aspire Community Works is particularly invested in seeing these changes implemented. By advocating for fairer access to justice, Aspire hopes to empower small businesses and social enterprises, ensuring they play a more significant role in the public procurement landscape.
