Best value has given a new significance to challenging and competitive procurement. This paper describes the role that competition can play throughout the whole procurement process: starting with the fundamental decision, what services are needed; through to considering the best way of delivering services; and concluding with the decision on who will provide the service. Procurement, in this broad sense, is therefore critical to service improvement and much more than just the decision to purchase goods, works or services from a particular supplier.
This paper has been written to help local authorities to become more effective at procurement, particularly the procurement of services. At many authorities this is the least developed aspect of procurement: yet it is at the heart of best value. The Commission's AC Knowledge series aims to share the lessons emerging from its inspection, audit and research work, to help authorities to learn from each other's experiences and to inform national policy debates. At the same time, the paper aims to raise awareness of the role that auditors and inspectors play in relation to procurement, and to encourage authorities to engage with their auditors and inspectors early in the procurement process.
The paper is aimed at a wide range of decision-makers in local authorities. It should be particularly useful to those involved in fundamental service reviews (sometimes called best value reviews, or BVRs), as well as to line managers of the services under review and executive members and senior officers who are responsible for the design and implementation of corporate procurement strategy. But the importance of procurement within the best value framework is such that the main messages should be grasped by members and officers at all levels.