Councils to procure with Best Value
Local government procurement changes moved a step closer last week
after the Local Government Act gained Royal Assent.
When it comes into effect next year it will bring about an end of
compulsory competitive tendering, replacing it with a new duty of
best value. But local councils will still be able to weight tenders
from their direct labour organisations to take account of wind-up
costs, when evaluating them against contractors' bids.
In the autumn chief executives and senior officials are to
spearhead a Local Authorities' Task Force to bring better value.
They will be expected to demonstrate in year on year improvements
in their performance and demonstrate efficiency savings.
The public sector spends over £16 billion on construction,
double that of central government which is already undertaking
procurement initiatives.