{"id":3709,"date":"2022-06-10T10:51:38","date_gmt":"2022-06-10T09:51:38","guid":{"rendered":"https:\/\/blogs.gov.scot\/public-procurement\/?p=3709"},"modified":"2022-06-10T10:51:38","modified_gmt":"2022-06-10T09:51:38","slug":"pro-competitive-procurement-will-help-you-meet-ambitious-targets","status":"publish","type":"post","link":"https:\/\/blogs.gov.scot\/public-procurement\/2022\/06\/10\/pro-competitive-procurement-will-help-you-meet-ambitious-targets\/","title":{"rendered":"Pro-competitive procurement will help you meet ambitious targets"},"content":{"rendered":"

Cheating or competing? It is your business to know the difference. To highlight this important procurement subject we welcome a guest blog from the Competition & Markets Authority (CMA)<\/a> \u2013 written by Sean McNabb, Director, CMA Cartels Enforcement.<\/p>\n

The CMA is \u00a0rolling out a programme of engagement with public procurers. This programme aims to share learnings from real life cartel cases, drawing out advice on common bid-rigging red flags.<\/p>\n

The CMA\u2019s freely available resources will help you to better spot and report suspect activity in your procurement projects. Read on to find out more.<\/p>\n

\"SeanSean McNabb, Director, CMA Cartels Enforcement:<\/strong><\/h3>\n

Every penny spent in public procurement counts, and now more than ever it must represent true value for money.<\/p>\n

Smart public procurement has the power to drive economic recovery. It can support ambitious net zero goals and help navigate the economic pressures that we are all facing.<\/p>\n

Fairness in procurement<\/strong><\/h3>\n

In his foreword to the latest Scottish Government Procurement Strategy<\/a>, Director of Scottish Procurement and Property, Nick Ford, talks about a \u2018Fairer Scotland\u2019 with \u2018Fair Work\u2019 as a fundamental foundation to success.\u00a0 The concept of fairness in procurement is equally integral to the work we at the Competition & Markets Authority (CMA) do.\u00a0 Ensuring fair competition and open dynamic markets is at the heart of our operations and it is our job to root out and punish businesses who don\u2019t play fair. Businesses who look to undermine competition for personal gain, for example by rigging bids for contracts in public procurement. This can increase prices by 20% or more.\u00a0 Indeed, we prioritise cases where we find evidence of harm to public sector contracts. \u00a0Our priority is to protect consumers from the ill effects of anti-competitive practices, whether this is through inflated costs or poorer quality goods and services.<\/p>\n

Scotland is in a positive position of having significant collective spending power that, to coin Nick\u2019s terminology, \u00a0has the capability to \u2018deliver sustainable and inclusive economic growth.\u2019<\/p>\n

However, from my experience as an investigator into cartel conduct, where there is money to be had, illegal opportunism can creep in.\u00a0 This risk is especially high now as many suppliers are under economic strain for a number of reasons. These could include the fallout from the pandemic, ongoing supply chain challenges post EU Exit and economic pressures emerging from the crisis in Ukraine.\u00a0 When businesses are under stress and desperate to protect margins \u2013 they may be tempted to cut corners and break competition rules.<\/p>\n

Bid-Rigging<\/strong><\/h3>\n

Bid-rigging, where suppliers get together to decide amongst themselves what they will bid and who will win a contract, remains a key risk in public procurement. \u00a0As said, it can increase prices by at least 20% and sometimes more and those involved will often go to great lengths to hide wrongdoing.\u00a0 However, there are some common red flags you should be alert to.<\/p>\n

We are now rolling out a programme of engagement with public procurers. This programme aims to share learnings from previous cartel cases, drawing out advice on common bid rigging red flags. Participants will be able to better spot and report suspect activity within procurement projects.<\/p>\n

At the CMA we have taken a number of cases that have affected public bodies across the UK. We have been particularly active in the construction sector \u2013 issuing a total of \u00a367 million in fines across 5 separate cartel cases. \u00a0A number of directors have been disqualified and there have been two criminal convictions.<\/p>\n

Visit the CMA\u2019s <\/strong>Cheating or Competing campaign page<\/strong><\/a> to access freely available support, including:<\/strong><\/h3>\n