Procurement is a Powerful Tool to Shape Communities

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Procurement can mean different things to different people, depending on their role and perspective.  

To some, it’s a strictly financial exercise, a matter of getting the best deal for the lowest cost. But for me, procurement is more like climbing onto the roof with a tin tray, jumping off, and rattling down at high speed. It’s a wild ride, and I’m holding on tightly.  

Over the past few years, the changes in procurement have been profound and, in my view, represent a fundamental shift in how we approach the use of public money. 

The biggest change has been the move away from a narrow focus on economic advantage as the key criterion for awarding tenders. It’s no longer just about who offers the best price. Instead, we’re seeing a much broader approach, one that is closely aligned with the Welsh Government’s Well-being of Future Generations Act. This legislation compels us to think long-term, and to consider the social, environmental, and cultural impacts of how we spend public money. In short, procurement is no longer just about economic value – it’s about achieving the most advantageous outcomes for society as a whole. 

At the Welsh Local Government Association, we’ve been working closely with officer networks across councils to support this shift. It’s clear that we need to do more than simply spend money – we need to maximize the impact of every pound we allocate. Local government alone is responsible for £5.5 billion of public service spending in Wales, out of a total of £8.75 billion. That’s an immense responsibility, and it’s vital that we use those funds wisely. 

So what does this broader approach to procurement look like in practice? It means stepping back from the traditional economic focus and thinking about value in a more holistic way. For example, when assessing a tender, we should be asking not just whether the bidder can deliver at the lowest cost, but also whether they can deliver wider benefits, such as supporting local jobs, reducing carbon emissions, or promoting equality and inclusion. These are the kinds of outcomes that align with our broader policy objectives as a country, and they are central to the Well-being of Future Generations Act. 

The new regulations provide a massive opportunity for us to rethink how we do business. However, this opportunity comes with a challenge: changing the behaviours and mindsets that have shaped procurement practices for decades. If we don’t embrace this change, we risk missing out on the potential to deliver real, lasting benefits for our communities. 

This means there’s a lot of work to be done. We need to ensure that public sector procurement teams have the skills, knowledge, and tools they need to adapt to these changes. We need to foster a culture that values innovation and collaboration, and that recognises the importance of thinking beyond the short-term financial bottom line. 

For me, public service is at the heart of this transformation. It’s about delivering the best possible outcomes for the people of Wales, and that means using our resources in ways that are sustainable, equitable, and forward-thinking. The new procurement frameworks give us the chance to make a real difference – but only if we’re willing to take the leap, change our behaviours, and embrace the opportunities that lie ahead. 

In the end, procurement is not just a process, it’s a powerful tool for shaping the future of our communities. The changes we’re seeing now reflect a deeper understanding of what it means to deliver value in the public sector, and I’m excited to see where this journey takes us. 

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