Unlocking More Value in Public Procurement: Negotiating Citizen Benefits

Unlocking More Value in Public Procurement: Negotiating Citizen Benefits Public sector procurement has traditionally focused on cost savings and efficiency, but it […]

26 February 2025 3 min read

Unlocking More Value in Public Procurement: Negotiating Citizen Benefits

Public sector procurement has traditionally focused on cost savings and efficiency, but it has the potential to deliver much more. Instead of just securing the best price, procurement teams could negotiate added value for citizens, ensuring that local communities benefit directly from large contracts.

For example, when a Local Authority reprocures a network contract worth £200,000 annually, why not negotiate discounted broadband services for residents as part of the deal? Many major suppliers have the capacity and flexibility to offer these benefits without significantly increasing costs—procurement teams just need to ask the right questions.

Beyond Cost Savings: How Procurement Can Deliver Citizen Benefits

The idea is simple: if a Council is spending millions on essential services like IT infrastructure, energy, or telecommunications, shouldn’t citizens also see direct benefits? When negotiating public contracts, procurement teams should explore opportunities such as:

  • Discounted broadband services for residents, particularly in low-income areas.
  • Free or subsidised digital skills training as part of an IT services contract.
  • Public Wi-Fi access improvements when renewing telecom contracts.
  • Energy efficiency upgrades for local households as part of an energy deal.
  • Transport discounts when securing mobility or infrastructure contracts.

These added-value benefits can significantly improve public services, reduce digital exclusion, and enhance overall citizen well-being—all while keeping public procurement cost-effective and strategic.

Real-World Example: A Smarter Approach to Procurement

Let’s take a practical scenario:

A Local Authority is renewing its network and broadband services contract, with an annual spend of £200,000. Instead of just securing the most competitive rate, procurement officers could:

✔️ Negotiate a 10% broadband discount for residents in the Council’s area.
✔️ Secure free broadband access for community centres, libraries, and schools.
✔️ Ensure the supplier funds digital literacy programmes for elderly and disadvantaged residents.
✔️ Include public Wi-Fi improvements in key locations as part of the contract.
✔️ Make onboarding new customers the supplier’s responsibility, reducing the administrative burden on the Local Authority.
✔️ Require the supplier to partner with a local SME to deliver elements of the programme, supporting regional businesses.

By simply embedding these discussions into the procurement process, Local Authorities can transform a routine procurement into a deal that delivers wider social benefits—at no extra cost to the public purse.

Why This Approach Matters

1. Driving Social Value Without Extra Costs

Many suppliers already offer CSR (Corporate Social Responsibility) initiatives—they just need a push to include these benefits in contracts. By leveraging public sector spending power, Local Authorities can ensure real value is delivered back to citizens.

2. Reducing Digital Exclusion

With more services moving online, access to affordable, high-quality internet is no longer a luxury—it’s a necessity. Ensuring broadband discounts as part of network contracts can help low-income households stay connected and improve digital inclusion.

3. Maximising Public Spend Efficiency

Instead of focusing solely on cost savings, procurement teams can ensure long-term value for money by securing both financial and social benefits—delivering greater outcomes from the same contracts.

4. Encouraging Supplier Responsibility & SME Involvement

The responsibility of onboarding new customers should rest entirely with the supplier, ensuring that the Local Authority doesn’t take on additional administrative burdens. Furthermore, the supplier could be required to partner with a local SME to help deliver the citizen benefit programme, ensuring that procurement supports regional economic growth.

A Simple Shift in Procurement Thinking

The best part? This approach doesn’t require complex policy changes—just a shift in mindset. Procurement teams already hold significant influence over contract terms, and by negotiating citizen-focused benefits, they can transform procurement into a tool for community improvement.

Instead of seeing procurement as just a cost-saving exercise, Local Authorities should use their purchasing power strategically, ensuring suppliers provide wider public benefits as standard practice.

What Do You Think?

Should Local Authorities negotiate citizen benefits in major contracts? Could public procurement become a more powerful tool for improving local communities?

Let’s start the conversation.

#ProcurementAct #PublicProcurement #SocialValue #BestValue #Innovation

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