<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/bea84392-04cc-4c85-b49e-7f3b17a48db2/Ellipse_1_(3).svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/bea84392-04cc-4c85-b49e-7f3b17a48db2/Ellipse_1_(3).svg" width="40px" /> Joint procurement refers to multiple London boroughs collaborating on a specific procurement. This could include early-stage market testing and engagement at the beginning of a procurement, or jointly tendering or contracting with a supplier, during the execution of a procurement.
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'Joint procurement' in this section refers to a broad range of activities throughout the execution phase of a single procurement. This is because we encourage cross-borough collaboration beyond simply jointly contracting or entering into shared services agreements. Boroughs can realise significant commercial value and service innovation by coming together and working collaboratively on many of the features involved in the execution of a procurement.
This is how it is described in the EU Directives - Rec (71) Directive 2014/24:
'Joint procurement can take many different forms, ranging from coordinated procurement through the preparation of common technical specifications for works, supplies or services that will be procured by a number of contracting authorities, each conducting a separate procurement procedure, to situations where the contracting authorities concerned jointly conduct one procurement procedure either by acting together or by entrusting one contracting authority with the management of the procurement procedure on behalf of all contracting authorities'.
In previous sections, we have outlined how collaborating on strategic planning, knowledge sharing, market engagement and design can deliver greater commercial outcomes and innovation for London boroughs. The benefits of jointly executing on a procurement opportunity at the later stage are similar. If done properly, joint procurement can eliminate knowledge asymmetries, reduce transaction costs, leverage economies of scale, and develop shared solutions to common challenges.
We encourage the use of common procurement wherever it is possible, and wherever it would deliver a commercial or service benefit.
However, joint procurement can also pose significant cultural, commercial and governance challenges. In general, joint procurement will be more straightforward when:
Joint procurement covers a broad range of activities. As we have outlined previously (for instance, in Preparation and Design) every phase throughout the lifecycle of a specific procurement can include some level of collaboration. At the execution phase, borough 'partners' that have agreed to jointly procure (see guidance on Aggregating Purchasing Demand) will next need to execute on a number of key steps.
Create a collaborative commissioning strategy
Each partner will have different experiences and understandings of the product or service being procured. Before approaching the market, it is important to create a shared commissioning strategy that presents a cohesive group approach.
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