Public sector procurement influences far more than the purchase of goods and services. It shapes which companies gain access to government, how public money supports innovation and how effectively departments use their collective buying power.

A closed-door roundtable at Parliament, hosted by HCLTech and The Entrepreneurs Network, considered whether procurement reform is changing who wins government work. 

Opening remarks came from Sam Ulyatt, Chief Executive, Crown Commercial Service, Caroline Gorski, Director, Digital Commercial Centre of Excellence and Dr. Ravinder Singh, Head of Digital and Systems Team, Government Commercial Function.

The discussion suggested that the direction of travel is positive, although the transition remains at an early stage.

Existing frameworks are still moving into the newer procurement regime, and participants acknowledged that its available flexibilities are not yet being used to their full extent. Greater familiarity with those options will influence how significant the eventual change becomes. 

Use procurement as a strategic capability

Government purchasing is highly fragmented. Different organizations often procure similar technologies separately, negotiate at different times and approach suppliers with different requirements.

That fragmentation has consequences for cost and for the supplier experience. The UK government has substantial collective buying power, but it captures less of that advantage when demand is divided across individual organizations.

The roundtable discussion around cloud infrastructure illustrated the potential of a more coordinated model. Presenting public sector demand collectively strengthens the negotiating position and creates an opportunity to address wider requirements around security, skills, infrastructure and investment alongside price.

The same thinking applies to common technology purchases more broadly. Commercial and digital teams need to work together to understand the underlying requirement, identify opportunities for consolidation and determine where shared purchasing creates better outcomes.

Procurement becomes more strategic when these decisions are linked to wider economic and public service priorities.

Access to a framework does not guarantee opportunity

Greater supplier diversity was another central theme.

The discussion highlighted a gap between smaller businesses gaining places on government frameworks and subsequently winning contracts. That distinction is important. Formal access to a procurement vehicle creates the opportunity to compete, but it does not automatically change established buying behavior. 

Smaller suppliers often bring specialist technology, agility and new approaches to public sector problems. Government benefits when those capabilities have a realistic route into departments and a successful implementation in one organization has a pathway to wider adoption.

Confidence remains part of the equation. Buyers managing mission-critical services naturally gravitate toward familiar suppliers, particularly where the consequences of failure are significant. Broadening competition requires commercial structures that give newer suppliers opportunities to establish credibility and demonstrate their capabilities without lowering standards.

Create the market government wants to buy from

Procurement also plays a role in shaping future supply.

The discussion explored how purchasing models could support stronger domestic supply chains and give UK-based technology companies more space to compete over time. In areas where the current supplier market is concentrated, this requires deliberate market development rather than expecting competition to emerge independently.

Flexible procurement routes provide one tool. Early engagement with suppliers provides another.

“For companies like us, it’s about engagement. If you can engage with people to understand the problems on the ground, what you’re trying to achieve and where you’re trying to get to, that’s where you can bring your experience to bear,” said Paul Montgomery, Vice President - Head of Public Services, Aerospace and Defense Europe, HCLTech, during the roundtable.

Suppliers deliver stronger responses when they understand the problem an organization is trying to solve, its current environment and the outcomes it needs to achieve. Procurement based predominantly on a written specification can favor companies that already know how government buys, while limiting the ability of less familiar suppliers to demonstrate relevant experience.

Greater engagement allows buyers to understand what the market is capable of before requirements become fixed.

Reform also requires cultural change

Legislation alone will not determine how procurement operates in practice.

“Transparency is becoming key, so everybody knows the basis on which they’re entering into procurements. The flexibility of the Procurement Act 2023 is also helping companies like us,” said Montgomery.

Internal silos, duplicated contracts and reluctance to share existing capabilities can undermine the benefits of a more flexible procurement system. The roundtable surfaced examples of organizations repeatedly buying technologies or licenses that already exist elsewhere in government because access and ownership remain fragmented.

Commercial reform is closely connected to wider digital transformation. Shared services, better visibility of existing assets and multidisciplinary decision-making all help the UK government use procurement more effectively.

Transparency and flexibility were viewed positively in the discussion, particularly where they give suppliers greater clarity over how opportunities are structured and evaluated. They also create more room for government to engage around the problem itself rather than relying solely on a prescribed response process.

The next phase will depend on how those freedoms are used. 

• Coordinated demand strengthens the UK government as a buyer
• Better market engagement widens the range of expertise available to it
• More deliberate support for emerging suppliers gives innovative businesses a clearer route to scale

Together, those changes give procurement a much wider role in public sector transformation, linking commercial decisions with competition, innovation and the quality of services government can deliver.