Academies and public sector procurement priorities

Academy Trusts have to follow Procurement Policy Note 05/21: National Procurement Policy Statement which was issued in June 2021 and which took immediate effect.

PPN 05/21 in fact applies to all contracting authorities in the public sector, including academies which need to understand its implications when undertaking procurements.

The statement establishes priorities for public sector procurement covering:

• Social Value;
• Commercial and procurement delivery; and
• Skills and capability for all.

Social Value

Although the statement makes clear that value for money in procurement means achieving an effective combination of quality and effectiveness for the least expense, it does not necessarily mean that academies should choose the lowest price tender when taking account of social value outcomes.

Academies need to consider the following priorities in their procurement process:

• Creating new businesses, new jobs and new skills - helping new or small businesses to grow, increasing employment opportunities, and offering training opportunities
• Tackling climate change and reducing waste - contributing to the government's net zero target, reducing waste, and seeking sustainable procurement
• Improving supplier diversity, innovation and resilience - creating a more diverse supply chain, increasing innovation, and sustainable delivery and productivity.

Whilst the above have to be taken into account, other factors may also be relevant such as local priorities.

Commercial and procurement delivery

Academies should consider whether they have the right policies and processes in place to manage the key stages of commercial delivery identified in the statement, where they are relevant to their procurement portfolio.

Skills and capability for procurement

Academies should consider their organisational capability and capacity, with regard to the procurement skills and resources required to deliver value for money.

The details are set out in the statement.

Further information

For more guidance and information for academies, please check out our Education Knowledge Hub and our Charity & Not for Profit Knowledge Hub.