National Procurement Policy Statement (NPPS)

Navigating the National Procurement Policy Statement (NPPS): A Strategic Guide for Buyers and Suppliers

Introduction: Understanding the NPPS and Its Strategic Importance

The National Procurement Policy Statement (NPPS) is a pivotal document shaping public procurement in the UK. With the Procurement Act 2023 introducing significant reforms, public sector buyers and suppliers must align with new strategic priorities, ensuring compliance while maximising opportunities.

The NPPS mandates contracting authorities to prioritise value for money, social value, economic growth, environmental sustainability, and supply chain resilience. This article explores how the NPPS integrates with key procurement frameworks, including the Government Playbook Series, the Green Book, and the Social Value Model (PPN 02/20), providing actionable insights for buyers and suppliers.

The Government Playbook Series: Best Practice in Public Procurement

The Government Playbook Series sets procurement best practices across various sectors. Contracting authorities and suppliers must understand and apply these principles to ensure effective and compliant procurement processes.

Key Playbooks Relevant to NPPS:

• Sourcing Playbook: Emphasises a public interest test to determine whether outsourcing delivers better value than in-house services. Aligns with NPPS’s drive for value for money and efficiency.
• Construction Playbook: Requires early supplier engagement and outcome-based specifications to improve project delivery. Supports NPPS’s focus on driving innovation and strengthening supply chains.
• Digital, Data & Technology Playbook: Stresses cybersecurity and digital innovation, ensuring public procurement leverages technology to enhance service delivery and efficiency.

Example: A local authority procuring a digital case management system must follow the Digital Playbook’s principles, including early market engagement, iterative development, and cybersecurity standards (Cyber Essentials certification). This ensures compliance with NPPS goals of innovation and resilience.

Value for Money: The Green Book’s Role in Procurement Decision-Making

The Green Book provides guidance on appraisal and evaluation in central government, ensuring procurement decisions are based on sound economic analysis.

Key Green Book Principles for NPPS Compliance:

• Optimising cost-effectiveness over the contract lifecycle.
• Balancing economic, social, and environmental outcomes in decision-making.
• Applying rigorous impact assessments to ensure procurement choices achieve long-term public benefit.

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Example: When procuring a fleet of electric buses, a government department must conduct a whole-life cost assessment, considering factors like fuel efficiency, maintenance, and environmental benefits. This aligns with NPPS and Green Book guidance on sustainable investment.

Social Value in Procurement: Applying PPN 02/20

The Social Value Model (PPN 02/20) integrates into the NPPS, requiring procurement to deliver broader public benefits beyond cost efficiency.

Core Social Value Themes in NPPS:

• Tackling Economic Inequality: Encouraging SME and VCSE participation.
• Fighting Climate Change: Prioritising low-carbon solutions and sustainable supply chains.
• Promoting Wellbeing and Workforce Development: Ensuring fair wages, inclusive recruitment, and skills training.

Example: A public health contract includes a requirement for suppliers to provide apprenticeships and skills training for underrepresented groups. This demonstrates social value impact, aligning with NPPS and PPN 02/20.

What This Means for Public Sector Suppliers

Suppliers must proactively adapt their bidding strategies to remain competitive. Key considerations include:

• Demonstrating clear social value outcomes aligned with NPPS and PPN 02/20.
• Strengthening sustainability credentials to support net zero goals.
• Investing in workforce skills and diversity initiatives.
• Engaging with early procurement discussions to shape contract requirements.

Example: A facilities management company competing for a government contract integrates a social value commitment, including local recruitment, upskilling staff, and carbon footprint reduction initiatives. This enhances their bid’s competitiveness under NPPS evaluation criteria.

What This Means for Public Sector Buyers

Public sector buyers must embed NPPS principles into their procurement strategies. Key actions include:

• Conducting early market engagement to ensure fair competition and supplier readiness.
• Applying whole-life cost assessments rather than focusing solely on upfront price.
• Using Government Playbook guidelines to structure procurement processes.
• Incorporating robust social value metrics into evaluation criteria.

Example: A central government department implementing NPPS must ensure that all tenders include supplier commitments on job creation, environmental impact, and community engagement.

Aligning with NPPS for Long-Term Success

At Thornton & Lowe, we help public sector buyers and government suppliers deal with the changes in public procurement under the National Procurement Policy Statement (NPPS).

• For Buyers:
  We offer support with compliance, advice, and outsourced procurement consultancy services. We also provide options appraisals, supplier engagement, and supplier development programmes to ensure you get good value for money, social benefit, and sustainability.
• For Government Suppliers:
  We help suppliers find routes to market, make the most of existing frameworks, and manage changes in procurement. Our team works with you to improve your bidding process so you can win contracts and grow your business. This forms part of our bid & tender writing services.

By using guidance from the Government Playbook Series, the Green Book, and the Social Value Model, we ensure that both buyers and suppliers are prepared for NPPS changes. Adjusting your procurement and bidding strategies to meet NPPS priorities is essential for winning contracts and making a positive impact.

For expert advice on how to adapt your procurement strategies to NPPS reforms, contact our team today.