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What is it?
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<img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/7530d79e-3646-454c-9d73-959b26503f5f/Ellipse_2_(2).svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/7530d79e-3646-454c-9d73-959b26503f5f/Ellipse_2_(2).svg" width="40px" /> The Light Touch Regime is a separate set of rules for service contracts in certain sectors, social, health and education services. These contracts are deemed to be of 'lower interest to cross-border' competition, so the regulations covering their procurement tends to be more flexible, and less stringent.
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Interviews with boroughs found that use of the Light Touch Regime (LTR) is fairly common, especially in adult social care.
Given its widespread use amongst boroughs, this page will not provide a step-by-step guide of how to use it. Instead, it aims to serve as a reminder that LTR can be a powerful tool for innovation, and should be used by boroughs for technology contracts in the relevant service areas.
For non-procurement specialists, or those looking for a reminder of how and when to use the LTR, CCS has a clear and useful outline below:
Why does it matter?
The LTR matters because it allows significant flexibility for London boroughs, which can be used to deliver innovation and great outcomes for technology procurement.
The flexibility allowed in the LTR is significant, and this provides real scope for commercial innovation. First, the thresholds for LTR procurements are higher - £589,148 - which allows more space for unregulated commercial innovation (note that the thresholds for the 'Lord Young Reforms' always refer to standard thresholds, rather than LTR thresholds, even in LTR contracts).
The only real must-haves in LTR procurements relate to:
- Compliance with the Treaty principles of transparency and equal treatment.
- Clear publishing and advertising, including through a Contract Notice or PIN, and a follow-up award notice.
- Fair and appropriate timelines for suppliers.
- The process and award-criteria being clearly linked to the subject-matter of the contract.
This allows flexibility with respect to almost all other features of the procurement, including:
- Design of the procurement structure and process.
- Evaluation criteria, including specialised or non-mainstream criteria.
- Using the procurement to stimulate innovation or other strategic priorities.
How should you do it?
In addition to the rules governing LTR, we recommend considering the following steps to delivering innovation through the procurement:
- Getting users involved in the design and evaluation process. The LTR gives boroughs scope to involve real service users in the evaluation process, including in the development of criteria. In fact, it encourages it. Consider approaching a procurement like a classic 'user research / user testing problem' in a technology development project. Work with real users (in interviews, workshops, observations) to develop an understanding of solutions and make sure they continue to be involved throughout, including the testing or evaluating of products and services in the competition.
- Thinking about accessibility, design and UX in the evaluation criteria. The development of the evaluation criteria can be even more flexible, giving large scope to move away from price/quality. Think about 'softer', but important, characteristics of a technology product or service: it's accessibility, design, look and feel. As long as these criteria are clearly published, and clearly relate to the subject-matter, you are in the clear.
- Running competitions optimised for technology suppliers. The competition process itself can be flexible, as long as timelines are appropriate. Consider how you can ask suppliers to submit artefacts and deliverables that are more useful than standard tender documentation: product demos, wireframes, code snippets, process flow diagrams, pitch decks, or videos.
- Introducing negotiation and workshops into the tendering process. There is scope for constructive negotiation and even workshops. Think about how you can run 'two-stage' procurements (either PQQ-SQQ / competitive dialogue) to allow suppliers to submit proposals and demos, and then negotiate product features, requirements and commercials during the next stage,