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Estates and facilities teams working in the NHS and the public sector face a complex array of procurement challenges, from capability and capacity constraints to financial efficiency and achieving net zero. Olivia Matei, Procurement and Framework Coordinator at Lexica says need routes are needed
The UK public health decarbonisation market has been sized in the billions. However, the potential procurement benefits will remain unrealised without a step change in the support offered to public sector organisations to make successful funding applications or find private sector funding alternatives. The public sector needs more than just a route to market – it needs new ways of financing and delivering on net zero.
This means engaging more deeply in procuring clean technology; for instance, finding sustainable and energy-efficient solutions such as LED lighting and solar PV and going beyond mere target setting to meet climate targets that effectively serve the NHS and the public sector.
Over £100 million of green technology transactions have been processed for UK public bodies since 2021 and procurement frameworks have enabled access to fundamental clean technology upgrades. These include implementing smart LED lighting systems that adjust brightness based on the time of the day and occupancy levels, as well as the installation of building upgrades for energy efficiency. Engaging early with procurement frameworks is a key action for estates and facilities teams in which to focus, as this will significantly reduce the time and effort required to identify, evaluate, and implement green technologies.
COMPLEX PROJECTS
The public sector and the NHS deal with increasingly complex projects. Whether £20 million solar farm installations through to national LED deployments, these are complex projects that require specialised skills and funding. This is where procurement frameworks can provide much needed structure for sourcing green technologies and act as a springboard to accelerate delivery. In one example, public bodies could move from piloting LED rollout to scaling-up through a direct award.
Estate and facilities managers can also seek support with contract development and agreement to ensure the project meets the requirements set within the direct award parameters which are defined as part of the framework. This will help a project to be processed promptly as well as deliver savings. According to the London Borough of Waltham Forest for instance, “the energy saving LED lightbulbs use less electricity than traditional incandescent light bulbs, with the improvements expected to shave off around seven per cent off the Council’s annual energy bills”.
CAPABILITY, CAPACITY AND EFFICIENCY
Looking beyond strategic procurement, addressing the current challenges of capability, capacity and efficiency will require workforce development, skills building and careful fiscal management. For example, through framework procurement we can unite supply chain experts with NHS client teams to jointly execute clean technology projects. Only through a well thought-out and collaborative approach can we ensure the continued delivery of high-quality healthcare services while advancing sustainability objectives.
Clean technology procurement is different from procuring stationery or purchasing digital and telecoms solutions. With informed procurement support from clean technology experts, our public health system can be focused on doing what it does best – delivering high-quality healthcare services. Working together in this way, we can procure effectively for net zero.
NET ZERO
The transition to net zero in the public sector also presents an opportunity for innovation and collaboration between various stakeholders. By fostering partnerships between public bodies, private sector companies, and research institutions, we can accelerate the development and implementation of novel clean technologies. These collaborations could lead to the creation of pilot projects that test cutting-edge solutions in real world settings, such as energy-positive buildings or advanced waste-to-energy systems.
Moreover, such initiatives could serve as valuable case studies, providing insights and best practices that can be scaled across the entire public sector. This approach not only supports the UK’s decarbonisation goals but also positions the country as a global leader in sustainable public infrastructure, potentially opening new export opportunities for UK green tech firms.
Following the Budget on October 30th and the new Procurement Act, which is set to come into force in February 2025, it is a time of change for the public sector, its capital works programme and procurement processes. Amid the change, we must not take our eye off the prize. Namely that in the UK, the public sector provides the size and scale of energy and climate projects that are needed to boost British supply chains to make every UK home net zero. Better hospital, school and local authority buildings will mean better outcomes for us all.
