New procurement rules are being rolled out in Stoke-on-Trent this Autumn making it easier for local companies to win business from the city council.
The new administration, which took power in May’s election, has been scrutinising the way the local authority traditionally awarded contracts. Senior councillors now want to prioritise local firms by making key changes to the way contracts are scored and advertised.
These changes include making the social value component of the scoring system worth more as well as breaking up larger contracts to give SMEs and small traders a better chance to compete.
There will also be more notice given for the procurement process providing firms with extra time to gear up to bid for new work.
Stoke-on-Trent City Council Leader Jane Ashworth said: “We do not want to be haemorrhaging money and it’s important that businesses in the city are aware we are a good place to invest and locate, with the right support structures in place.
“So, it’s been very important to us to re-organise our procurement priorities so that local businesses and local labour get a fair crack of the whip to secure contracts.
“This is so critical now as we are embarking on a multi-million-pound programme of improving and renovating council-owned properties, so there are a lot of jobs and opportunities out there.”
Latest figures show that in the last year around £4.5 million in council contracts were awarded to organisations based outside the city through procurement. This was partly due to the authority needing to procure work through partnerships with large organisations to benefit from their resources, which were not available locally.
Smaller firms in Stoke-on-Trent fared better. A total of £2.3 million was awarded to SMEs last year through procurement process and of that £1.68 million was awarded to companies of that size in the city.
However, the council leader believes that can be improved on even more with adjustments to the system.
Jane added: “The law is changing so that any tenders going out over £50,000 have to be advertised in advance with fair notice. What we promise to do is give that same advance notice for far lower value contracts, so that small local firms also get the heads up.
“This is important, but so is breaking down larger contracts into smaller bitesize chunks, which is vital so that smaller, local businesses are not put off and bid for the work they can specialise in.
“And it is important that the social value attached to every contract is scored much higher. In Manchester in some tenders the social value component is about 30 per cent of the score – in Stoke-on-Trent it is about five per cent.
“We haven’t settled on a new figure yet but we are committed to raising it much higher – helping to keeping the Stoke pound in Stoke.
“We are doing all this because it is what businesses told us they need – so we are going to make it happen.
“The aim is to roll this out imminently – this Autumn – and provide local businesses with a framework that can help them succeed.”
Good Morning,
This is interesting and positive news. Is there a format to register with the council as a prospective supplier? How will the project/opportunities be advertised?
We have recently won major contracts with Staffordshire County Council for the regeneration and tiling of the underpasses in Newcastle. We would love the opportunity to do the same and more within Stoke On Trent.
Kind Regards,
Eileen Flannigan
Absolutely fantastic news that local companies/contractors can potentially win local contracts so local taxpayers getting local work. This should also be reflected that local supply companies should be nominated to supply materials for these local contracts avoiding the need to bring procurement from outside the city and again local tax paying businesses.