STORMONT: NEW CONTRACT PROCUREMENT RULES FOCUS ON LOCAL BUSINESSES

Changes to how Stormont awards public procurement contracts have been hailed as a

huge opportunity by business groups and the voluntary sector. Procurement is the

process of businesses bidding to win government contracts. The voluntary sector could

now find it easier to tender for contracts, while the Department of Finance said the

move will protect supply chains. Stormont departments must now place a focus on

local manufacturing. Every year the Northern Ireland Executive spends 3bn buying

goods, services and construction from the private and third sectors. Previously, the

Department of Finance announced that the living wage would be included as a

condition of contract for tenders. There is now a new focus on local supply chains

which could benefit the economy, according to Mary Meehan, deputy chief executive at

Manufacturing NI.

"e; The pandemic has exposed the vulnerabilities and the risk of disruption within supply

chains right across industry and in the public sector, " she told BBC News NI. "e; This new resilience policy is really a framework to help public sector bodies to support those local supply chains and help reduce the risk of disruption. & quote; Finance Minister Conor Murphy has announced a

further policy change, which he said should make it easier for voluntary, community and social enterprise organisations to secure public contracts. "We want people to engage more with local organisations," he said. "e; It reduces the carbon footprint in terms of goods coming in

and out and it means more employment is created locally. "One of the key things we are saying is anyone engaging in government contracts will have to have a percentage of social element in that contract."

"I think that gives bigger opportunities for social enterprises to partner up with private sector businesses to do more good for society." Tenders are scored on the basis of cost and quality, but from June, they must include a minimum of 10% of total award criteria to social value.

' We are busier'

Social enterprise Access Employment Limited works with people with mixed abilities and creates employment opportunities within local communities. Chief executive David Hunter told BBC Radio Ulster' Good Morning Ulster that the changes will remove barriers when it comes

to tendering for projects.

"At the moment it is quite difficult to access government procurement contracts but what today's announcement will do is give us access to private sector companies in terms of working in collaboration with them to get involved in supply contracts, & quote; he said. "We might not be the main supplier but we can be part of the supply chain and that is good news for us as it means we are busier."

"Many of the workforce here have some form of disability and previously they would have been excluded from the labour market." "What we have been able to do is provide jobs for those people and give meaningful employment." Organisations said they recognised it is not possible for the third sector to bid for large-scale projects but it is hoped there will be more awareness of what contributions they can make as part of bids by the private sector. Social Enterprise Northern Ireland said this awareness

was important to help support the local economy and to make better use of public money.

Source:

BBC World, 7 February 2022

https://www.bbc.com/news/uk-northern-ireland-60279985

Q.1 Propose and justify five key components of corporate governance that should be considered for the

Stormont's operations.

Q2. Giving examples, suggest four methods in which buyers in the ministries of Stormont may assess the

ethical practices of suppliers before requesting quotations or inviting for tenders.

Q3. Suggest a procurement structure and its implications that Stormont may adopt to balance sourcing needs of the Northern Ireland.

Q4. Propose and justify five critical key performance indicators that could implemented by a procurement professional operating in the third sector of Northern Ireland.