Early engagement (soft market testing) provides some of the best benefits related to public sector procurement, some of which include transparency and innovation. This is important because the Procurement Act 2023 places a lot of emphasis on these two aspects of government procurement.
Early engagement in public procurement is so important that it’s now considered best practice. This means suppliers and contracting authorities must pay special attention to the way in which they approach tendering.
We’re going to take a closer look at early engagement in B2G procurement, particularly how early engagement affects public sector procurement strategies.
Best Practices for Early Engagement
Early engagement is a critical stage in the public procurement process. It involves engaging with all stakeholders, including the public, to understand their needs and requirements. Effective communication is essential for successful early engagement. By involving suppliers early in the process (ideally the conception stage), public sector organisations can gather valuable insights, identify potential challenges, and develop more effective procurement strategies.
Why Use Early Engagement In Public Procurement?
There are many compelling reasons to use early market engagement (EME) in your procurement strategy. One of the major reasons is that interaction with suppliers helps to refine contract requirements within realistic parameters. This is especially important when it comes to resources required, including staff, products, and equipment.
Additional benefits of early supplier engagement in procurement include:
Establish interest
The earlier contracting authorities begin engaging with suppliers, the more time for interested parties to raise their hands. Buyers get a good idea of the potential response to their contract from all types of suppliers, including small businesses and medium-sized enterprises, large organisations, and niche product or service providers.
Budget planning and resource allocation
Early engagement gives public bodies and suppliers a good idea of the project’s scope, including an estimated timeframe, resources required, costs, and capacity. The result is a realistic budget with managed expectations on both sides.
Data collection
Again, this benefits both sides because early involvement is a collaborative process that shares procurement market understanding and intelligence, industry trends, and opportunities and risks.
Collaborative innovation
Because early project exploration is collaborative there are public contract opportunities for public bodies and suppliers to identify new, innovative solutions that deliver better value to the public sector. For example, innovation can improve a contract’s design, delivery, and operational outcomes.
Streamlined procurement process
With the ice broken and many preliminary tasks taken care of, the actual procurement process is quicker, shorter, and more efficient.
Public sector supplier relationships
Working together, sharing info, and mutually beneficial experiences enable suppliers and contracting authorities to get to know each other well, which can result in productive long-term relationships.
Note: While early engagement is actively encouraged, contracting authorities must ensure that it doesn’t distort competition or violate the principles of non-discrimination and transparency (Public Contracts Regulations 2015: Regulation 40).
Transparency In Early Supplier Engagement
As we said above, transparency in procurement is one of the primary objectives of the Procurement Act 2023.
But, what does that mean?
It means that everyone – everyone! – can “view, search, and understand what the UK public sector wants to buy, how much it’s spending, and with whom.”
For suppliers, this means they can easily find upcoming public contracts in their field and understand exactly what it is they’re bidding for. It also explains the evaluation process so that suppliers can ensure they’re all given equal treatment and can object if the procurement rules are breached.
The idea is to provide SMEs with more opportunities to participate in the public sector, as well as ensure competitive pricing and increase innovation. Ideally, this should facilitate public sector buyer-supplier collaboration, emphasising value for money and social value.
Procurement Innovation In The Public Sector
As we mentioned, procurement reforms are designed to drive innovation and ultimately boost local and national growth. It’s with this in mind that contracting authorities have been given more leeway to design their own competitive flexible procurement procedures to suit the specific needs of each contract.
Government departments are encouraged to support innovative solutions to climate change, social health and welfare, unemployment and skills development. This is best achieved by engaging innovative businesses (early engagement with SMEs), ensuring transparency and access to information, and the flexible procurement procedures mentioned above.
Buyers are further encouraged to divide large contracts into lots that enable more SMEs to bid on government projects.
How To Carry Out Early Engagement
According to Crown Commercial Service (CCS), one of the most important things public procurement buyers and suppliers must do is keep detailed records of all communication. This is one of the key elements in public procurement transparency, especially when it comes to sharing information.
Everyone must be on the same page and no one should be able to allege they’ve been unfairly treated or that others have received preferential treatment.
CCS also states that there is no (reasonable) limit to the number of suppliers government buyers can engage with. In fact, buyers are encouraged to engage an array of suppliers that represent the relevant market or target audience.
Proportion is the keyword here. Aim to keep the number of suppliers proportionate to the value and complexity of the project. The simpler the contract the simpler the engagement. In some cases, a Google search and email will do.
Effective communication and stakeholder engagement
Effective communication and stakeholder engagement are critical for successful early engagement. Public sector organisations should engage with stakeholders to understand their needs and requirements. This can involve a range of activities, including market research, events, and in-person meetings.
Stakeholder engagement, especially feedback, helps public sector organisations ensure their procurement processes are effective and efficient. This collaborative approach helps to build strong relationships, foster innovation, and ultimately deliver better value for the public sector.
There are three primary methods of engagement:
- Face-to-face
- Questionnaires/surveys
- Conferences, workshops, webinars
What information must a contracting authority supply?
The more information contracting authorities can provide the better, but in general the following should be included in early marketing engagement (EME).
- The government department’s name, background, and contract details.
- What the contracting authority wants to achieve.
- Areas of feedback required.
- Supplier information required and the deadline to submit a response.
- Estimates for timescales, duration, and location.
Early Engagement And B2G Marketing
Cadence Marketing is a specialist in the B2G marketing sector. Backed by our partner, BiP Solutions, we have decades of experience in the public sector, including how to boost your win rate through early engagement.
One of our most effective EME services is email marketing, which is data-driven and tailored to your target market. Our market research gives you a good insight into contracting authorities’ challenges so you can create a strategy that incorporates early engagement and gives you a competitive advantage when contract opportunities arise.
Contact us to find out more about how early engagement can enhance your marketing strategy.
