1. The importance of Procurement for Wales and Welsh Business
Its very big business: every year the public sector - local councils, the NHS, colleges and universities, the Welsh Government - spend about £4.5 billion on buying goods and services: everything from food, stationery, IT equipment through to construction.
Every extra 1% of that expenditure that is won by Wales-based business equates to 2,000 jobs.
In Wales we have taken the amount of that business won by Wales-based companies from about 30% to nearly 50%.

2. Procurement market
UK public procurement market worth £175 billion p.a.
Wales: £4.5 billion p.a. - equivalent to 10% of Wales GVA
Reduced public spending - harder for companies failing to win.
BUT no evidence Wales-based suppliers not getting contracts.
Of 3,400 suppliers winning work worth between £150k - £5m nearly 60% SMEs and 51% Wales-based (1,500 SMEs.)
BUT for work over £10m only 3 of 11 suppliers Wales-based in Wales and two were SMEs. (mainly construction)

3. European Union Procurement
20% public expenditure on goods & services covered by EU directives.
In 2009, over 15,000 invitations to tender published in line with EU directives, with estimated total value of Ä 420 billion.
EU: % of procurement contracts (3.5% of total value) awarded to companies in other Member States.
EU: % of contracts were awarded to cross-border procurement through affiliates, e.g. subsidiary of multi-national
UK: UK 1.5% of direct contracts to other Member States suppliers
UK 16.5% of (indirect) contracts went to companies with headquarters in other Member states.

4. European Union Procurement
UK companies successful in gaining 17% of direct cross-border awards from other European Member States.
German companies win 26% of such contracts.
75% of Irish direct cross-border awards go to UK companies

5. ‘Barriers to Procurement’ Report
Complexity of the public sector procurement process
Difficulty experienced in completing PQQ (Pre Qualification Questionnaire
Lack of transparency in the evaluation and feedback process;
Use of certain risk criteria can make it unduly onerous for small business compared to the value or risk of the contract;
Having access to, and use of ‘approved lists’.
Fears that the ‘pooling’ of public contracts to create consortia contracts and framework agreements can ‘lock out’ small businesses

6. Report’s recommendations
Standardising procurement processes:
A standard PQQ be produced, based on best practice and written in plain English, which must be adopted by all public bodies in Wales.
Greater Transparency:
All public sector contracts over £25,000 must be advertised on the Sell2Wales website
Updated guidance should be produced, based on best practice and case studies, on PQQ procedures and contracts should be structured in order to open up opportunities for smaller businesses.
Approved lists should not be used in Wales
SMEs must be made fully aware of the public procurement processes in order to overcome real or perceived barriers.

7. Recommendations Training & Education:
All public sector bodies to review key procurement performance indicators (‘KPIs’) , to shift emphasis from achieving cash savings and rebalance to include wider range of KPI criteria such as contribution to economic development and working with local business.
Public sector procurement staff must receive training to deliver on these measures and to adopt best practice across Wales. This training should be delivered consistently across Wales to ensure uniformity of understanding and practice.

8. Welsh Government policy
‘Programme for Government’ commitment to implement the recommendations of the ‘Barriers to Procurement Opportunities’ report in the current fourth term of the National Assembly.
Use procurement more imaginatively to create opportunities for job and wealth creation, training and community regeneration, e.g. ‘Can Do’ Toolkit.
Improve the supply of suitably qualified procurement professionals in Wales.

9. Winning in Tendering Aims of the project
To develop and improve the public tendering experience of small organisations in Wales and Ireland
What is the ‘Winning in Tendering’ project?
Strong multinational project team with multi-disciplinary skills and experience
Experts in procurement process and procurement law, with a deep understanding of the needs of smaller organisations and of public procurers.
Part-funded by the European Regional Development fund through the Ireland Wales Interreg Programme