All procurements regardless of their value or complexity follow a standard sequence of actions. This is known as the procurement cycle. In practice, you will complete some of the stages without being aware of having done so.
Lower value purchases example
This is particularly true of lower value, routine purchases. Think about the decision processes involved with restocking the stationery drawer. The user simply decides what and how many of the stationery items are needed and the items are purchased from the nominated stationery supplier perhaps using the departmental procurement card. The time spend on the decision process is minimal.
Higher value purchases example
If, however, it is the time to make an application for funds to upgrade the department's computers more consideration is given, especially if there will not be enough funds to replace all the current systems and some degree of prioritisation will be needed. More consideration will also be given to the specification, ability etc of the new systems than in the stationery example.
As the value, risk and/or profile of a requirement increases so too does the time spent at each stage of the procurement cycle. In major procurements, such as large building projects, a very formal process is followed that includes formal review stages to ensure that the best solution is selected and implemented.
Procurement Act 2023
The Procurement Act has heralded a change in emphasis for public procurement. It focuses on achieving value for money, increasing the transparency of public sector expenditure and strengthening both local communities and smaller businesses’ capabilities of providing services to the sector.
Steps have been defined and reduced, and the wider procurement cycle now sits in a procurement quadrant. These are referenced in guidance and documentation provided by central government.
The procurement quadrant comprises:
Plan
Understanding what contracts you have and require, what your institution is spending its money on, and knowing from whom you are best placed to obtain supplies, services and works.
Define
Determining how best to obtain the range of supplies, services and works that your institution requires, and understanding how to access the supply market to achieve your requirements.
Procure
The process of sourcing and evaluating quotations and tenders, plus selecting suitable suppliers to meet your needs.
Manage
The often-ignored process of managing your live contracts to ensure that you obtain from them, that which you are paying for. This creates the procurement virtuous circle, as the learning obtained from managing your contracts feeds into the planning and defining processes when contracts are coming to an end, and you start to consider their replacement.
Templates and guidance linked to each of these steps are available in the Procurement Toolkit. These will help you to successfully procure and manage the contracts that you need to put in place to ensure that your school, trust, or college can operate to the best of its ability, enabling you to focus on the education and wellbeing of your students.
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.12