A guide to procurement outsourcing for the public and third sector

With the Procurement Act 2023 taking effect from February 2025, public sector organisations and third sector bodies face heightened scrutiny over how they spend public money. For many charities, housing associations and publicly funded organisations, meeting legal procurement obligations with limited in-house expertise is increasingly challenging. This is where procurement outsourcing can offer a cost-effective and compliant solution.

In this article, we explore what procurement outsourcing is, how it works in the public and third sectors, and how Thornton & Lowe helps clients meet their compliance, transparency and value-for-money obligations.

What is procurement outsourcing?

Procurement outsourcing involves appointing a third-party specialist to manage some or all of your procurement activities. These can include:

• Tender writing and document preparation (SQs, ITTs)
• Supplier research and selection
• Evaluation criteria design and bid assessment
• Contract award and reporting
• Post-award supplier management

Public sector organisations often outsource non-core procurement tasks, or engage experts to support procurement for complex or high-value projects. This allows them to access specialist skills and ensure that all activity complies with relevant legislation such as the Procurement Act 2023 and the Social Value Act 2012.

Is procurement outsourcing right for your organisation?

Use the checklist below to determine if procurement outsourcing is suitable for your organisation:

• Do you struggle with internal procurement capacity?
• Are you unsure how to meet new procurement legislation?
• Do you need to demonstrate value for money to funders?
• Are you planning a large or complex procurement project?
• Do you lack experience with tender writing or evaluation?

If you answered yes to any of these, outsourcing may be the ideal solution.

Example in practice: Housing association framework support

Consider a housing association needing to procure maintenance services via a compliant framework. Rather than run an in-house procurement process, the organisation could partner with Thornton & Lowe to:

• Draft a robust specification and scope of works
• Select the appropriate Crown Commercial Service (CCS) framework
• Develop and issue compliant tender documents
• Evaluate bids and document the scoring process
• Manage supplier clarifications and final contract award

This ensures compliance with the Procurement Act, full auditability and improved value for money, while saving internal resource and minimising risk. See an example here: 

Grounds maintenance procurement consultancy project

Why charities and third sector bodies outsource procurement

Charities and voluntary organisations must often follow public procurement rules if they receive government funding or act as a contracting authority. Outsourcing procurement can help by:

• Ensuring compliance with the Procurement Act 2023
• Reducing internal workload and staffing costs
• Accessing procurement expertise on demand
• Meeting social value, sustainability and diversity goals
• Creating an auditable, transparent procurement trail

This is particularly valuable for organisations without a dedicated procurement officer, or for those managing one-off capital projects or grant-funded initiatives.

Benefits of outsourcing procurement

The table below highlights key benefits of outsourcing compared with in-house procurement:

How Thornton & Lowe supports procurement outsourcing

Thornton & Lowe is a trusted partner for public and third sector bodies across the UK. We provide a tailored procurement outsourcing service that includes:

• Full or partial tender management
• Specification development and market engagement
• SQ and ITT writing and formatting
• Supplier communication and bid evaluations
• Contract award and reporting

Our services are compliant with the latest procurement legislation, including the Procurement Act 2023, and are aligned with your organisational goals around value for money, transparency and impact.

Explore our tailored services:

• Outsourced Public Procurement Consultancy
• Charities Procurement & Value for Money Consultancy
• Housing Association Procurement Compliance

Risks and mitigations

While outsourcing offers many benefits, it is important to be aware of potential risks:

• Loss of control: Maintain oversight through service-level agreements and reporting.
• Lack of sector knowledge: Choose a provider like Thornton & Lowe with proven experience in public sector and third sector procurement.
• Data security: Ensure confidentiality agreements and secure data management protocols are in place.

With the right partner, these risks are easily mitigated.

FAQs

Does the Procurement Act 2023 apply to charities? Yes, if a charity is classed as a contracting authority or receives public funding for procurement, the Act applies.

Can we retain some procurement functions in-house? Absolutely. Thornton & Lowe can work alongside your team to support specific parts of the process.

Is procurement outsourcing cost-effective? Yes, especially when considering the savings from reduced internal resource and improved contract value.

How long does implementation take? Timelines vary depending on project complexity but can begin within days of engagement.

Do you provide ongoing procurement support? Yes. We offer both one-off project support and retained consultancy models.