Service Procurement Best Practices for UK Local Authorities and Public Sector Organisations

Service procurement is a central pillar in the effective functioning of the public sector. From nationwide public sector organisations to local councils, navigating the complexities of procurement is not merely a matter of compliance, but a critical exercise to deliver the best outcomes for communities.

With the evolving landscape—including the increased reliance on a contingent workforce—it's never been more vital for local authorities to adopt best practices that ensure transparency, value for money, and resilience.

Understanding local authority procurement

Local authority procurement processes must align with legal frameworks such as The Procurement Act 2023 – recently rolled out - and adhere to the principles of fairness, openness, and non-discrimination. Effective procurement is not just about buying—it’s about building long-term relationships, ensuring sustainability, and fostering innovation within local government operations.

Key challenges in local authority procurement

Budgetary constraints: Tight budgets demand rigorous cost management and strategic decision-making.

Changing workforce needs: With the rise of the contingent workforce, local authorities and public sector organisations must adapt their procurement strategies to achieve flexibility without sacrificing quality.

Regulation and compliance: Adhering to procurement law and demonstrating transparency are constant requirements.

Supplier diversity: Encouraging small and local businesses to participate in tenders can be challenging but is key to community development.

Lack of visibility over compliance: Limited oversight and monitoring can make it difficult for local authorities to ensure adherence to procurement law and guidance, increasing the risk of breaches and inefficiencies.

Best practices for public sector service procurement

1. Develop a comprehensive procurement strategy

Every public sector organisation should establish a clear procurement strategy aligned with its overall objectives, taking into account both short-term needs and long-term strategies. This includes defining what success looks like, identifying key categories of spend, and setting protocols for supplier engagement.

2. Embrace digital procurement solutions and tools

Seek out leading digital procurement solutions with UK local authority and public sector experience that offer a robust, automated platform that streamlines the sourcing and management of contingent workers and consultant delivering professional services for the public sector. Advanced technology can provides real-time visibility, compliance assurance, and cost control, enabling organisations, authorities, and councils to operate with greater efficiency and transparency.

3. Foster supplier collaboration and development

Building long-term relationships with suppliers can lead to more innovative and cost-effective solutions, with a diverse range of suppliers, including small and medium-sized enterprises (SMEs), social enterprises, and local providers. Partnering with a Managed Service Provider (MSP) can create a central point of engagement, encouraging transparent communication and ongoing collaboration between organisations and a wide range of suppliers, ensuring procurement processes are accessible and supportive.

4. Effective management of the contingent workforce

As the reliance on a contingent workforce grows, procurement teams must develop frameworks that allow for flexibility while maintaining high standards. This involves clear contract terms, compliance checks, and robust performance monitoring. This is another area where Managed Service Providers (MSPs) or Vendor Management Systems (VMS) can be effective and efficient, streamlining the engagement and oversight of temporary staff.

5. Prioritise sustainability and social value

Social value should be embedded in all local authority procurement activities. This means considering environmental impact, local job creation, community benefit, and ethical sourcing when evaluating suppliers. Public sector organisations might use weighted scoring systems to ensure such values are consistently applied.

6. Continuous training and monitoring

Procurement professionals within local authorities and public sector organisations should receive ongoing training to stay current with legislative changes, market trends, and best practice methodologies. Upskilling staff enables organisations, authorities, and local councils to navigate complex procurement challenges with confidence.

Effective local authority procurement is no longer just a back-office staffing function; it is a strategic enabler. By adopting forward-thinking approaches, embracing new technologies, and focusing on workforce flexibility, local authorities and public sector organisations can deliver exceptional services while maximising value for residents.

As public expectations rise and challenges evolve, these best practices equip local authorities to meet their mandates with agility, transparency, and integrity.

Ready to transform your service procurement strategy? Contact Comensura today to discover how our expertise and innovative solutions can help your UK public sector organisation achieve greater efficiency, transparency, and value.

Comensura has recently entered into a strategic partnership with NEPO, aiming to enhance procurement solutions and deliver greater value to public sector organisations across the UK. Find out more about the new NEPO Framework Agreement.