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57-550: In 1963, the Soviet government held a request for proposal among the aircraft design bureaus. The Sukhoi design, with its high cruise speed of 3,200 km/h (2,000 mph) was favored over the designs submitted by Yakovlev and Tupolev and after a preliminary design review in June 1964, the building of a prototype was authorized. Development of the T-4 required massive research efforts to develop

114-415: A business proposal by an organisation interested in the procurement of a service or product from potential suppliers. It is usually part of a complex sales process, and made through a bidding process. Unlike invitations to tender , which award contracts based upon the price and quality of the tender, RFPs allow suppliers more flexibility in proposing an original service or product in alignment with

171-920: A "Collaborative Procurement Programme" in 2007, managing over £18 billion of expenditure falling within eight categories of goods and services frequently purchased across the public sector, namely energy, vehicle fleet, travel, office solutions, information and communications technology, professional services, food and construction. A further category, facilities management , was added at a later date. The National Audit Office (NAO) argues that collaborative procurement begins with standardising specifications , which allows public bodies to aggregate demand and compare unit costs . Lower prices should result either from economies of scale , or from using pricing information to challenge suppliers. Collaboration should result in fewer tendering exercises, leading to lower administrative costs, and allow public bodies to concentrate on more specialised purchases that are unique to them. In

228-636: A "commitment to promote small business procurement", in particular by aiming to award 25% of government contracts (by value) to small and medium sized enterprises . At the same time a policy presumption was made that individual ICT contracts and projects "should be less than £100m lifetime costs". The government promoted and welcomed reform during the period from 2010 onwards, especially the development and implementation of European Commission 's proposals to modernise procurement legislation published in 2011. A "strategic supplier summit" held in February 2011 promoted

285-451: A 2010 review of the use of framework agreements and other forms of collaboration, they noted that there was a "wide variation" among public bodies in the extent to which they were being used. The Public Contracts (Amendment) Regulations 2009 came into effect on 20 December 2009, implementing the EU's Remedies Directive published on 20 December 2007. These regulations introduced the possibility of

342-504: A 2012 Action Note that "it is not against EU procurement law to talk to potential suppliers before starting the formal procurement process", and confirming in 2016 that "pre-procurement engagement ... is now expressly permitted". Since 2011 the UK Government has operated a policy regarding the choice of procurement routes (for example, using the Open or Restricted procedures) and for recording

399-656: A central steering group charged with developing and sharing best practice, but the Public Accounts Committee recommended additional central controls, fearing that the controls then in place were not adequate "to prevent and deter inappropriate use". Of particular concern was the extensive use of cards by staff of the Ministry of Defence , who accounted for just under 75% of all card expenditure but where controls were felt to be weaker than those in place in other departments. The Committee also suggested that lodge cards offered

456-530: A change which was expected to be "particularly advantageous to SMEs in managing their cash flow ". This was a reversal of previous government contracting practice in model contract documents, where assignment of debts was allowed only with the prior consent of the relevant public body. Government suppliers who act as prime contractors for major contracts should also engage with SME's in their supply chains to ensure opportunities are available and fairly awarded. The government noted in 2013 that it did not yet have

513-629: A collaborative food group to review this area of procurement, leading to the launch of the Public Sector Food Procurement Initiative (PSFPI) in August 2003. The PSFPI set out to "encourage public bodies to procure food in a manner that considers the principles of sustainable development ". Its initial aims were to: A more extensive set of objectives was adopted in 2017 to reflect initial learning and revised government priorities. A Select Committee report published in 2021 noted that

570-412: A company's needs. Similar requests include a request for quotation (RFQ) and a request for information (RFI), where a customer needs more information from vendors before submitting an RFP. An RFI is typically followed by an RFP or RFQ. When an RFP is made after negotiations with prospective contractors, the submitted tender is known as a BAFO (best and final offer). A request for proposal requires

627-459: A competitive dialogue request if further pre-market engagement would better support the process of defining the nature or function of the goods or services required. The 2014 Directive and 2015 Regulations introduced some minor variations to the wording on how a CD must be conducted, for example provision for tenders to be "optimised" after they had been submitted was changed so that they could be "fine-tuned", while restriction on changes being made to

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684-665: A contract being declared "ineffective" if it has been awarded by a contracting authority "in serious breach of the procurement rules", along with civil financial penalties and contract shortening, two alternative remedies available to the courts. In August 2010, David Cameron , then recently elected as prime minister, invited businessman Sir Philip Green to carry out a review of UK government spending and procurement. Green's summary report, Efficiency Review by Sir Philip Green , published in October 2010, alleged significant failings in government procurement processes. The government published

741-422: A contractor has failed to comply with such laws in its contract performance, confirming that a contract clause to this effect would be compliant with the requirement in law for "appropriate measures to ensure that in the performance of public contracts economic operators comply with applicable obligations in the fields of environmental, social and labour law" (Directive 2014/24/EU, Article 18(2). The OGC introduced

798-538: A final selection decision is based. Federal government requests for final proposal revisions must advise offerors that the final proposal revisions shall be in writing and that the Government intends to make award without obtaining further revisions. The term "request for proposals" is sometimes used in relation to government procurement in the United Kingdom , for example a request for proposals to raise and manage

855-515: A full understanding of the role played by SMEs in the supply chains for their purchasing, especially their contribution to supplying the Ministry of Defence and the Department for Work and Pensions . The UK public sector relies heavily on the use of framework agreements : the NAO found that 93% of the public bodies they surveyed had used a framework agreement during the financial year 2008–09. However, in

912-550: A key aspect of the economic, social and environmental well-being supported by public sector contracting. CCS operated a Mystery Shopper scheme from February 2011 to November 2018, whose remit was to provide a route for suppliers to raise concerns about public procurement practice in England, The service was rebranded as the "Public Procurement Review Service" in November 2018, responding to feedback from suppliers and public bodies that

969-508: A lower-risk alternative to the standard card. Lodge cards can be used for purchasing travel but not for other use, and allow for one centrally-held card to be used in conjunction with a centralised booking system. Publication of a "procurement pipeline" provides notice of current and planned procurement activity to be undertaken by a purchasing organisation so that prospective suppliers can be made aware of business opportunities for which they may bid . The 2011 Autumn Statement incorporated

1026-497: A recommendation to central government departments and non-departmental public bodies in March 2010 suggesting inclusion within contracts of a clause under which the public body concerned could require the supplier to submit detailed management information . Government policy as announced in the March 2013 budget is to use the procurement process to promote tax compliance . Regulation 57 of

1083-585: A series of supply-side measures which the government was undertaking "to rebalance and strengthen the economy in the medium term", which included extension of the existing pipelines in the construction and ICT fields to cover the publication of plans setting out the procurement needs for other categories by April 2012, "to give suppliers the confidence to invest for the future and compete on a level playing field". Other more specialist procurement pipelines include: Northern Ireland's procurement pipeline arrangements are supported by an industry liaison group, chaired by

1140-479: A survey stated that the 2006 directives had led to more efficient and effective procurement practice, but 54% felt that "the simplicity of the procurement process" had deteriorated. The 2006 directives had created greater legal uncertainty within the local government procurement community. Several responses highlighted the need for better guidance and support from the EU and from the Office of Government Commerce (OGC), which

1197-497: Is a presumption in favour of contractual information being made publicly available (except in matters of commercial confidentiality such as pricing, intellectual property and business plans). The 2015 guidance made provision for a "safety valve" allowing suppliers to raise concerns if they felt that contractual information was being requested which did not add value, represented poor contract management practice or otherwise seemed unreasonable. The Scottish Government has also referred to

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1254-955: Is governed by the Public Contracts Regulations 2015, Part 3 of the Small Business, Enterprise and Employment Act 2015 , and (in Scotland ) the Public Contracts (Scotland) Regulations of 2015 and 2016. These regulations implement EU law , which applied in the UK prior to Brexit , and also contain rules known as the "Lord Young Rules" promoting access for small and medium enterprise (SMEs) to public sector contracts, based on Lord Young 's Review Growing Your Business , published in 2013. The Defence and Security Public Contracts Regulations 2011, also derived from EU law, apply to defence procurement. Health commissioners in England are exempt from

1311-554: Is now about £40 billion a year and, in addition, purchasing authorities in the national health service internal market spend more than £20 billion. These policies have brought immense benefits to the country. Their full potential has still to be realised. The more procurement there is, the more important it becomes that Government Departments should make a first-class job of it. Peter Gershon , in his 1999 Review of Civil Procurement in Central Government , referred to and followed

1368-554: The Government Procurement Card (GPC), was introduced in 1997 and can be used by central government departments, local government and other public bodies. Cards are issued by Barclays Bank , HSBC , Lloyds and National Westminster Bank . The House of Commons Committee of Public Accounts noted in a report issued in 2012 that at that time, all seventeen central government departments were operating their own procurement card programmes. The Cabinet Office has established

1425-576: The UK Government 's proposed Broadband Investment Fund was issued in June 2016. The collective term RFX is often used to embrace a request for proposal (RFP), or any of the terms listed below. Government procurement in the United Kingdom At around £290 billion every year, public sector procurement accounts for around a third of all public expenditure in the UK. EU-based laws continue to apply to government procurement : procurement

1482-415: The "101" completed all the test flights and flew the last test flight before the project was canceled on 22 January 1974. The rest of the prototypes were scrapped. Data from General characteristics Performance Aircraft of comparable role, configuration, and era Related lists Request for proposal A request for proposal ( RFP ) is a form of reverse auction that solicits

1539-476: The "basic features" of a tender was changed to a reference to its "essential features". Noting that the public sector spent over £2 billion per year on the purchase of food and catering services (England and Wales) and that more than 30,000 public sector organisations were involved in food procurement, including schools and social services providers, the OGC and the Department for Children, Schools and Families launched

1596-427: The "best example" of where different government departments had separate contracts in place with different suppliers, so that overall government scale could not be levered effectively. Green suggested that an "urgent review" could lead to savings of 30-40% in this category of expenditure. "Poor negotiation " was further identified as a cause of inflexibility in contracts. The coalition government of 2010 also made

1653-423: The "mystery shopper" title did not properly reflect the role of the service. The Public Contracts Regulations 2015 provide that public sector buyers must pay prime contractors within 30 days and must ensure that any subcontracts through the supply chain include a similar provision. In 2014–15 at least 33 NHS trusts paid fewer than half of their trade invoices on time, up from 23 in 2015–16 and 11 in 2014–15. Under

1710-492: The "particularly complex" threshold, where pre-market engagement with suppliers would be more appropriate. The government therefore adopted a presumption against competitive dialogue, implemented from May 2012 through a requirement that within central government, departments wishing to use this procedure required approval from their Accounting Officer, or a Commercial Director in cases where the authority has been delegated. Guidance states that Accounting Officers should not sign off

1767-463: The 2019-2020 coronavirus pandemic were published in March 2020 and remained in effect until 31 October 2020, allowing public bodies to make advance payments and retention payments for contracts which have been interrupted by the measures taken to reduce the spread of the coronavirus. Since 1 January 2021, the social value model in use among central government public bodies has included COVID-19 recovery, employment and social and community support as

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1824-600: The Better Payment Practice Code, they should pay at least 95% of non-NHS invoices within 30 days. Within the context of local government , many local authorities have adopted the National Procurement Concordat for Small and Medium-Sized Enterprises to encourage SMEs to engage in procurement and supply for local public services. Examples include the City of Wakefield 's Concordat agreed in 2005, and

1881-592: The Cabinet Office is the minister with overall responsibility for procurement policy, which is delivered through the Crown Commercial Service , an executive agency sponsored by the Cabinet Office. The Crown Commercial Service (CCS) publishes Procurement Policy Notes from time to time, which advise procurement staff in the public sector of government policy developments and best practice in relation to procurement. Procurement Policy Notes on responding to

1938-668: The Concordat agreed by East Suffolk Council in 2019. The UK government requires all government departments and their related organisations to ensure that they meet the minimum mandatory Government Buying Standards (GBS) when buying goods and services. Organisations in the wider public sector are also encouraged to specify the minimum mandatory standards in their tenders. As of 2023 , many aspects of government policy pertaining to procurement have been brought together in The Sourcing Playbook . The competitive dialogue (CD) procedure

1995-469: The Department of Finance and Personnel's Central Procurement Directorate (CPD). Guidance issued in 2015 and 2016 confirmed that rules and good practice provisions intended to ensure that business opportunities were available for small and medium sized enterprises were not intended to offer small businesses any preferential treatment. In November 2016 an advisory panel of 24 entrepreneurs and business figures

2052-587: The Exchequer , published a Government procurement strategy White Paper in 1995 called Setting New Standards: A Strategy for Government Procurement (Cm 2840). In his statement to the House of Commons , Clarke observed that With the development of the Government's policies for private finance , market testing, contracting out and internal markets, Departments are doing more of their business than ever before through procurement as against in-house provision. The annual spend

2109-660: The Lord Young Rules when procuring clinical services and these rules do not apply in Wales (i.e. to wholly or mainly devolved functions). Before the United Kingdom joined the European Communities in 1973 there was no significant legislation governing public procurement. New legislation, the Procurement Act 2023 , received royal assent on 26 October 2023, with implementation planned for 24 February 2025. In 2021,

2166-564: The Public Contract Regulations provides for contracting authorities to exclude a supplier if they are aware that it is in breach of its obligations relating to the payment of taxes or social security contributions, and where the breach has been established by a judicial or administrative decision having final and binding effect. Suppliers bidding for contracts over £5,000,000 in expected value are required to self-certify their status regarding tax compliance. A revised policy statement

2223-457: The T-4 project, which was officially scrapped on 19 December 1975. The aircraft's droop nose lowered to provide visibility during takeoff and landing. A periscope was used for forward viewing when the nose was retracted, and could be employed at speeds of up to 600 km/h (370 mph). Drogue parachutes were used in addition to conventional wheel brakes. The first T-4, designated "101", first flew on 22   August 1972. The test pilot

2280-446: The UK Government. This policy is intended to prevent public sector organisations, including local councils, from adopting their own boycotts, including boycotting Israeli suppliers in particular. Then- Labour Party leader Jeremy Corbyn criticsed the introduction of the policy as "an attack on local democracy". The government encourages departments to consult with potential suppliers before commencing formal procurement, noting in

2337-490: The White Paper's definition of procurement as inclusive of "conventionally funded projects" and also those supported by "more innovative types" of funding such as PFI. Gershon noted in his findings that previous governments had decentralised procurement and delegated expenditure decisions to Departments without creating a framework for controlling how they spent public funds. The Office of Government Commerce (OGC) set up

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2394-851: The bidder to produce an original business proposal based on the buyer's needs. Depending on the RFP document's specification, a bidder may be required to decide upon project expectations, timetable, product design, and vendors. Other requested information may include basic corporate information and history, technical capability, product information. In United States government procurement , Federal Acquisition Regulation 15.203 covers requests for proposals, stating Requests for proposals (RFPs) are used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. The FAR allows for evaluation of proposals, further discussions with bidders and invitation for submission of written final proposal revisions (FPRs), upon which

2451-543: The government announced that it wanted to see small and medium-sized enterprises (SMEs) "compete more effectively for public sector contracts". A review of progress with this initiative published in 2013 found that "against a backdrop of falling procurement spend", there had been a slight increase in direct expenditure with SMEs between 2011/12 (£4.4bn) and 2012/13 (£4.5bn). The 2008 budget statement also announced that businesses supplying services to Government would be able to sell their public sector invoices to debt specialists,

2508-467: The government continued to expect that "food procurement should provide value for money while also ensuring 'high standards of production, animal welfare , traceability and sustainability to support our agricultural industry '. The government argues that Public procurement should never be used as a tool to boycott tenders from suppliers based in other countries, except where formal legal sanctions, embargoes and restrictions have been put in place by

2565-535: The government estimated the value of public sector expenditure on goods and services at around £290 billion per year, an increase of around £70 billion from a National Audit Office estimate for 2008–09. Both estimates suggest that one third of all public sector spending was devoted to the acquisition of goods and services. Central government expenditure on third party goods and services was estimated at £54 billion in 2009-10 and £45 billion in 2011–12. The UK Government's first major statement on procurement strategy

2622-548: The government's intention to introduce more openness in relation to "the contracts it signs, the goods and services it purchases and the way it purchases them". The Cabinet Office was responsible for leading on UK engagement with the EU. In research undertaken by the Local Government Association (LGA) in 2010 to inform the LGA's views on the proposed modernisation legislation, 36% of local government officers responding to

2679-431: The light of the economic downturn of 2008 onwards, sometimes referred to as the " Great Recession ", the UK government adopted a series of ten "procurement for growth" principles, intended to ensure that UK government procurement would "take account of supply chain opportunities for UK companies in policy and delivery planning" and "analyse markets to assess where growth is achievable". In the March 2008 budget statement ,

2736-451: The rationale supporting such choices. A "Procurement Route Decision Tree" was put in place to support this policy. The decision tree was updated on 30 July 2015 to accommodate the revision to procurement routes available under the Public Contracts Regulations 2015. Government departments use procurement cards to support prompt payment objectives; these can be used to pay for goods and services of any value. A dedicated form of payment card,

2793-452: The review identifying its main finding as "the Government is failing to leverage both its credit rating and its scale". Green argued that the report gave "a fair reflection" of government waste and inefficiency in practice, for which "very poor data and process" were seen as the main causes. Cameron welcomed the report, saying "I think it's a good report, it will save a lot of money and it's important we do it." Landline telephones offered

2850-655: The suppliers available to public sector purchasers via their commercial agreements were micro -, small and medium sized enterprises. UK procurement policy in line with its EU background allows for social and environmental considerations to be taken into account in procurement decision-making. Government guidance on this topic has noted that tenders which are "abnormally low" may hide practices of " social dumping " and must be rejected if it has been proved that low costs reflect non-compliance with environmental, social or labour laws. The government has also recommended that public bodies make provision in contracts for later termination if

2907-459: The technologies necessary, including the manufacturing technologies to machine and weld the materials necessary to withstand sustained Mach 3 flight. Nearly 600 patents or inventions are attributed to the program. The first flying prototype was finally completed in the autumn of 1971. Work continued on an additional three airframes (one for static testing) through 1975. In 1974, the Ministry of Aviation Industry (Soviet Union) ordered work suspended on

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2964-673: Was Vladimir Ilyushin , son of famed aircraft designer Sergei Ilyushin , and the navigator was Nikolai Alfyorov. Testing continued to 19   January 1974. The T-4 flew only ten times for a total of 10 hours and 20 minutes.. One T-4 survives. Aircraft "101" is on display at the Central Air Force Museum in Monino near Moscow . The serial numbers of the prototypes were "101" to "106". Only "101" and "102" were built, while other additional prototypes "103" and "104" were under construction, and "105" and "106" only existed on draft charts. Only

3021-403: Was formed to advise the government on purchasing goods and services from SMEs, and a campaign was launched to demonstrate that "government is open for business", with a target of increasing government spending with SMEs to 33% of all third-party public expenditure by 2020. As of May 2023 the advisory panel includes 20 business leaders. In 2024, Crown Commercial Services stated that 72% of

3078-442: Was introduced into EU procurement law by the 2004 Directive "on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts" as a procedure available to Member States "in the case of particularly complex contracts". In 2011, Francis Maude , then Minister for the Cabinet Office , raised concerns that public procurers were using this procedure in cases which did not meet

3135-735: Was issued in February 2014 in order to clarify certain definitions. A case raised by Turning Point Ltd. against Norfolk County Council in 2012 confirmed that it is legitimate and fair to include a requirement in a tender barring caveats and qualified bids. A short form of terms and conditions for the acquisition of low value goods and services was published by the Cabinet Office in April 2014, allowing government departments to adopt consistent, appropriate and proportionate terms which did not over-burden suppliers. General transparency principles applicable to government procurement were published in March 2015, and updated in February 2017, stating that there

3192-616: Was published in 1984. In local government, a policy of compulsory competitive tendering (CCT) was first applied to construction, maintenance and highways work under Part III of the Local Government, Planning and Land Act 1980 . CCT was then extended to "blue-collar" services such as refuse collection by the Local Government Act 1988, sports and leisure management in 1989, and to "white-collar" services such as housing management in 1994/95. Kenneth Clarke , then Chancellor of

3249-523: Was then responsible for procurement policy. In February 2011 the UK Government stated its view that "the public procurement regime needs to be radically simplified to reduce red tape and improve value for money ". Part 3 of the Small Business, Enterprise and Employment Act 2015 allows the Minister for the Cabinet Office or relevant Secretary of State to impose further regulations on public bodies regarding how they undertake procurement. The Minister for

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