Procurement policy
Contract regulations
The Royal Borough of Kensington and Chelsea has internal rules for buying goods and services, called contract regulations.
These rules are part of the council’s constitution and guide processes in the award of contracts using public fund, including:
- ensuring transparency
- value for money and maximising public benefit
- accountability
- suitable competition, including the removal of barriers to small and medium-sized enterprises
The council has published these contract regulations in line with its obligations under the Local Government Act 1972.
In setting out how the council will contract, it is essential the council complies with the relevant Public Procurement Legislation.
Social value
In January 2013 the Public Services (Social Value) Act 2012 (the ‘Social Value Act’) became law. It requires the council to explore ways to improve economic, social and environmental well-being in the borough through the procurement of goods, works and services, subject to public procurement regulations.
Every year, the council spends around £300m through procurement and commissioning to provide essential contracts. This gives officers an opportunity to provide additional benefits for our residents, businesses, and visitors.
The council is committed to its responsibilities and obligations under the Social Value Act. Since 2019, we have been proud to be an accredited Living Wage provider, but we would like to take this even further. Through contracts, the council can exercise its spending power. Social value is one of the most important tools the organisation has to deliver the strategic vision and priorities set out in the current Council Plan (2023-27).
The council believes it can generate added social benefit through its commissioning and procurement activity by using local resources to their fullest potential. We would like our suppliers to help us do this through contract procurement and delivery.
To support these ambitions and those of the Council Plan, we must grow and adapt, and so too must our procurement principles, policies, and practices. The Social Value Policy will form part of the council’s wider Procurement and Contract Management Strategy and Social Investment Strategy (2023). This will provide a framework to help officers ensure every pound spent by the council leads to better outcomes as well as securing value for our communities and our residents.
Public procurement notes
The Cabinet Office provided guidelines called Procurement Policy Notes (PPN). These notes explain how public procurement should meet national priorities.
The National Procurement Policy Statement
The National Procurement Policy Statement (NPPS) is a statutory statement issued by the government. It sets and communicates the wider policy objectives the government expects public procurement to contribute to.