CPV Codes 101: Identifying and Resolving Procurement Challenges

Understanding CPV Codes

Common Procurement Vocabulary or CPV codes are a key part of public procurement in the UK and stem from the European Union. They help buyers and suppliers communicate clearly about products and services.

The idea is every possible type of tender or business opportunity has a code. Health and social work services for example is 85000000-9. Interesting suppliers register their interest in government contracts and highlight the codes which they are interested in. Procurement teams advertise using these appropriate codes - and bingo - the right opportunities to the right suppliers!

Or that's the intention. There are many classifications and buyers will want to ensure their specific opportunity is highlighted corrected so may include several. So therefore may also include Health services (85100000-0) and Social work services (85310000-5). This typically means you will be sent lots of opportunities which are right for your business, but also lots which aren't. You then stop opening those emails and alerts... and before you know it - you've missed a great opportunity for your business.

Tender Pipeline is our free software. Within the 'advanced options' on the left of the main search (in blue) you with see CPV. You can type your services in here to find your relevant CPV codes. E.g. start typing 'cleaning' and you will be presented with relevant CPV codes to choose. This will then show you live tenders based on this CPV code.

Another way to find relevant CPV codes for your business is simply to search using the keyword - e.g. cleaning. Then Find the cleaning tender you like the look of, click into it and see what CPV codes they were advertised under. They are the ones, which will be right for you. When registering with Find a Tender or Procontract, for example, which are key public sector procurement portals, you will then confidently be able to select the right ones for you!

We also offer tender alerts (not software driven but by our team, personal and bespoke for your business), searches, portal management as part of our:

• Search & Select Service
• Bid Mentor Service
• Bid Administration Service

The Structure of CPV Codes

CPV codes use a standardised format to classify goods, services, and works in public procurement. The system has a tree-like structure with different levels of detail.

The CPV Code Format

CPV codes have 9 digits followed by a check digit. The first two digits show the division, like "03" for farming products. The next two digits narrow it down further. For example, "0314" means fertilisers and nitrogen compounds.

As you add more digits, the code gets more specific. An 8-digit code pinpoints exact items or services. The 9th digit is for even more detail if needed.

The check digit at the end helps spot mistakes when typing codes.

Hierarchy and Classifications

CPV codes are set up in levels, like a family tree. The top level has 45 divisions. These cover broad areas like "Food" or "Construction work".

Each division branches into groups, then classes, and categories. This breakdown lets you find just what you need. It's easy to see how items relate to each other.

The system also has extra codes to add more details. These can describe things like the material an item is made from or how it's packaged.

You can use CPV codes to search for specific products or services. They help make sure everyone's on the same page in procurement deals.

CPV Code Example Structure

For example, let's look at the code for construction work:

You'll find over 9,000 CPV codes covering a wide range of goods and services. This system makes it easier to find relevant contract notices and business opportunities.

Using CPV codes is required in the EU since 1 February 2006. They're used to fill out competition notices, search for opportunities, and find contract notices in archives.

By learning to use CPV codes, you can better navigate the public procurement process. It helps you find the right opportunities.

Importance of Accurate CPV Code Selection

Choosing the right CPV codes is key for your procurement process. As a buyer or procurement manager, when you select the correct CPV codes, you increase your chances of connecting with the right suppliers. This can lead to better quality goods and services for your organisation and increased levels of competition.

Accurate code selection also helps you comply with procurement regulations. It ensures transparency and fairness in the bidding process, which is essential for public sector procurement.

Here are some benefits of accurate CPV code selection:

• Better matches between buyers and suppliers
• Improved procurement efficiency
• Enhanced competition among suppliers
• Easier comparison of bids
• Reduced risk of procurement errors

Remember, inaccurate code selection can lead to:

1. Missed opportunities with potential suppliers
2. Wasted time reviewing unsuitable bids
3. Potential legal issues due to non-compliance

To ensure you're using the right codes, take time to familiarise yourself with the CPV structure and use tools like Tender Pipeline to see what others in your sector do. Don't hesitate to contact us for any advice or support: hello@thorntonandlowe.com - 01204 238046.

Common Procurement Challenges With CPV

CPV codes can be tricky and choosing the wrong code is a common problem. With thousands of options, it's easy to pick one that doesn't quite fit your needs. This can lead to missed opportunities or incorrect bids.

Sometimes, the codes are too broad. You might struggle to find a specific code for niche products or services. This can make it hard to attract the right suppliers.

On the flip side, codes can be too narrow. You might need to use multiple codes to cover all aspects of a complex project. This can be time-consuming and confusing. Supplier engagement and development will help ensure a mutual understanding to make sure opportunities are not missed.

To tackle these challenges, you need to:

• Double-check your code selections - quickly see what others do via using Tender Pipeline
• Consider using multiple codes when necessary
• Provide clear descriptions alongside the codes
• Carryout effective pre-market engagement

Strategies for Effective CPV Code Use

Using CPV codes well can help you find the right tenders and follow procurement rules. Here are some key ways to make the most of CPV codes in your work.

Best Practices in CPV Identification

Start by learning the CPV structure. The first two digits show the main division, while later digits give more detail. For example, '45000000' is for construction work.

Use broad codes to cast a wide net, then narrow down. This helps you catch all relevant opportunities.

Keep a list of codes that match your products or services. Update it regularly as your business grows.

Check both main and supplementary codes. They work together to give a full picture of what's needed.

Don't rely on just one code. Use related codes to cover all bases and find hidden chances.

Ensuring CPV Compliance in Procurement Processes

Always double-check your chosen CPV codes. Make sure they truly fit what you're buying or selling.

Train your team on CPV use. Everyone should know how to pick the right codes and why it matters.

Set up a review system. Have someone else look over the codes before you submit anything.

Keep records of which codes you use and why. This can help if anyone asks questions later.

Main CPV Codes Updated 2024

CPV codes change over time to keep up with new products and services. You need to stay informed about these updates to use the codes correctly.

Main Categories : (1st Level)

The Procurement Act and CPV Code Changes

The Procurement Act 2023 will introduce some changes to how CPV codes are used in UK procurement, particularly for "light touch services". Light touch services will still be determined by CPV codes, but the Act includes a full list of services as opposed to just categories.

According to the Procurement Regulations, the services covered by the CPV codes set out in Table 2 of Schedule 1 are specified as light touch services. These "light touch services" are set out in Schedule 1 of the Procurement Regulations 2024, using CPV codes.

Light touch contracts are defined by CPV codes and are exempted from certain parts of the act. For healthcare procurement there will be further exemptions where relevant.

In summary, while CPV codes will still be used to categorise services, so largely business as usual from this perspective, other than clarification of those areas which fall under "light touch services", previously known as Part B services going back a little... Think health and social care, recruitment and legal services, for example.

The full legislation is available from the UK Government, or feel free to make contact and we can advise. Hello@thorntonandlowe.com - 01204 238046