Draft Wales Procurement Policy Statement

We are seeking views on the draft WPPS and draft Integrated Impact Assessment (IIA). The WPPS sets the strategic direction for public procurement in Wales and proposes a single overarching priority: strengthening the Welsh economy through public procurement.

Public procurement in Wales represents more than £11 billion of expenditure each year and plays an important role in delivering wider economic, social, environmental and cultural outcomes. The draft WPPS seeks to ensure public procurement supports Welsh Government priorities, including those set out in the Programme for Government, while helping maximise the value generated through public expenditure in Wales.

This consultation seeks views not only on the proposed priority, but also on the intended outcomes, procurement levers and delivery framework set out in the draft WPPS. We want to know whether these proposals are clear, practical and capable of delivering greater value for Wales.

The draft WPPS is being consulted on before it is finalised. We will consider the responses received, review the draft WPPS and the draft IIA, and publish a summary of responses and next steps, including setting out any amendments that may be necessary to the WPPS following consultation. The final WPPS will then be laid before the Senedd before coming into effect.

Public procurement in Wales represents more than £11 billion of expenditure each year. Procurement is not only a mechanism for purchasing goods, services and works. It helps ensure public money is spent transparently, fairly and effectively, secures value for money, supports healthy and competitive markets, and provides opportunities for businesses to access public contracts. Procurement can also be used strategically to strengthen supply chains, stimulate innovation, support economic growth and contribute to wider economic, social, environmental and cultural outcomes for Wales. It is therefore one of the Welsh Government's most significant practical levers for delivering government priorities.

The WPPS sets out the Welsh Government's strategic priorities and direction for public procurement in Wales. Section 14 of the Procurement Act 2023 places the WPPS on a statutory footing by enabling Welsh Ministers to publish a procurement statement for Wales and requiring Welsh contracting authorities to have regard to it when exercising relevant procurement functions. This strengthens the role of the WPPS as an expression of Welsh Government priorities and provides a clear strategic framework for procurement activity across Wales.

The current WPPS was published in 2021. A new WPPS is required to supersede the 2021 publication to reflect the new procurement landscape and the statutory framework established by the Procurement Act 2023, the Social Partnership and Public Procurement (Wales) Act 2023 and the Health Service Procurement (Wales) Act 2024. It will bring together existing procurement legislation, policy and priorities within a single strategic framework.

The proposed WPPS is centred on a single overarching priority: strengthening the Welsh economy through public procurement. It seeks to support a stronger, more inclusive and more resilient Welsh economy by ensuring more value from public spending is retained in Wales and that businesses, workers and communities benefit from public sector investment.

To inform development of the draft WPPS, Welsh Government officials engaged with a range of internal policy and delivery teams whose portfolios intersect with public procurement. This included officials responsible for fair work, procurement delivery, procurement policy and legislation, environmental policy, social value, health and social care, and other relevant policy areas. Their input has helped shape the proposed strategic direction and alignment with wider Welsh Government priorities.

This consultation provides an opportunity for stakeholders to give their views on the proposed WPPS and help inform the final statement. It also fulfils the requirement under the Procurement Act 2023 for Welsh Ministers to consult before publishing a procurement statement for Wales. The consultation seeks views from contracting authorities, suppliers, business representatives, voluntary, community and social enterprises, trade unions, social partners and other interested stakeholders on whether the proposed priority and expectations are clear, practical and capable of delivering greater value for Wales. Responses received will help inform the final WPPS prior to being laid before the Senedd.

The full draft WPPS is published alongside this consultation.

It focuses on a single overarching priority:

Strengthening the Welsh economy through public procurement.

This means using procurement to build a stronger, more inclusive and more resilient Welsh economy, where more value is retained in Wales and more businesses, workers and communities benefit from public spending.

While the proposed WPPS focuses on strengthening the Welsh economy as its primary strategic objective, it recognises that economic outcomes are closely linked to wider social, environmental and cultural outcomes. Fair work, sustainability, community resilience, the Welsh language and well-being outcomes remain important cross-cutting considerations throughout the procurement lifecycle.

The proposed overarching priority would be delivered through 7 intended outcomes:

• Welsh jobs and skills - Create new, well-paid jobs, apprenticeships and training opportunities by requiring suppliers to deliver them as part of the contract.
• Small and medium-sized enterprises (SMEs) growth and strengthening Welsh supply chains - Increase the value retained in the Welsh economy, support community wealth building, embed greater resilience and capacity within local supply chains and remove barriers to tendering so more SMEs can compete for and win public contracts.
• Community wealth building - Improve fair access to public procurement for SMEs and voluntary, community and social enterprises (VCSEs), helping to strengthen local supply chains, retain value in Welsh communities and support the delivery of social, economic and community well-being.
• Fair work - Promote fair work by encouraging secure and rewarding employment, effective worker voice, equality and safe and inclusive working practices that contribute to well-being and improved public service delivery.
• Innovation - Support Welsh innovation by encouraging the development, testing and use of new and improved products, services and ways of delivering public services.
• Foundational economy sectors - Support our foundational economy where Welsh supplier capacity is realistic, such as food and timber production and processing, construction, maintenance, facilities management, social care and professional services.
• Understanding the impact of public spending - Evidence how public spending is contributing to stronger communities, cultural well-being, the Welsh language and improved outcomes for Wales.

The draft WPPS includes a Delivery Framework setting out a range of procurement approaches that may assist Welsh Contracting Authorities in delivering the proposed priority. The framework provides examples of procurement levers that can be applied throughout the procurement lifecycle to support economic, social, environmental and cultural outcomes. These examples are intended to support implementation of the WPPS and are not exhaustive.

The Delivery Framework is intended to help contracting authorities consider how procurement can be used strategically to maximise the value generated from public expenditure. It encourages consideration of wider outcomes from the earliest stages of procurement planning through to contract management and evaluation, while allowing flexibility to reflect local circumstances and requirements.

The WPPS includes examples of approaches that may support delivery of the proposed priority, such as early market engagement, removing unnecessary barriers to participation, creating opportunities for SMEs and VCSEs, supporting fair work, encouraging innovation, strengthening Welsh supply chains, and considering how procurement can contribute to skills, employment and community benefits. It also highlights the importance of considering sustainability, whole-life value and longer-term outcomes when making procurement decisions.

The Welsh Government intends to support implementation of the final WPPS through guidance and tools to help contracting authorities apply its objectives consistently and effectively across the procurement lifecycle.

We have prepared a draft IIA to support this consultation. It considers how the proposed WPPS may strengthen the Welsh economy through public procurement, including potential impacts on jobs and skills, fair work, innovation, Welsh businesses and supply chains, community well-being, sustainability and the Welsh language.

The assessment also considers a range of factors relating to equality, health, children's rights, rural communities, socio-economic disadvantage and sustainable development.

We welcome views on the draft IIA and whether there are any additional risks you consider it should address before it is published with the final WPPS.

About you

1. Which of the following best describes you or the organisation on whose behalf you are responding?

• Member of the public
• Welsh contracting authority or other public sector body
• SME or microbusiness
• Large business
• Voluntary, community or social enterprise
• Co-operative or mutual
• Trade union or workforce representative
• Business representative body
• Academic or research organisation
• Other (please specify):

2. Which of the following best describes the location of you or the organisation on whose behalf you are responding? (select all those that apply)

• Isle of Anglesey
• Gwynedd
• Conwy and Denbighshire
• South West Wales (Carmarthenshire, Pembrokeshire, Ceredigion)
• Central Valleys (Merthyr Tydfil, Rhondda Cynon Taf)
• Gwent Valleys (Torfaen, Blaenau Gwent, Caerphilly)
• Bridgend and Neath Port Talbot
• Swansea
• Monmouthshire and Newport
• Cardiff and Vale of Glamorgan
• Flintshire and Wrexham
• Powys
• Outside of Wales

3. Which sector best describes your organisation?

• Agriculture, forestry and fishing
• Food and drink manufacturing
• Manufacturing and advanced manufacturing
• Construction and the built environment 
• Energy and utilities 
• Mining, quarrying and raw materials
• Transport, logistics and warehousing 
• Retail and wholesale 
• Hospitality and tourism 
• Information and communications technology (ICT)
• Financial, insurance and professional services 
• Legal and accountancy services
• Property and real estate 
• Business and administrative services 
• Creative Industries 
• Life sciences and healthcare 
• Education, training and skills 
• Health and social care
• Environmental services and circular economy 
• Public administration and public services
• Arts, culture, sport and recreation 
• Personal and other services
• Other (please specify):

Welsh jobs and skills

Outcome: Create new, well-paid jobs, apprenticeships and training opportunities by requiring suppliers to deliver them as part of the contract

Procurement levers (where the WCA believes it is possible or appropriate):

• Include requirements in specifications that support apprenticeships, training and workforce development.
• Embed Fair Work and well-being outcomes where relevant and proportionate.
• Encourage investment in local skills, employability and progression opportunities.
• Monitor delivery of employment and skills commitments through key performance indicators (KPIs) and contract management.

4. To what extent do you agree or disagree that the proposed outcome for Welsh jobs and skills provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree

Please explain your answer, including what would make it easier for public procurement to support Welsh jobs, skills development, apprenticeships, and workforce progression:

SME growth and strengthening Welsh supply chains

Outcome: Create new, well-paid jobs, apprenticeships and training opportunities by requiring suppliers to deliver them as part of the contract

Procurement levers (where the WCA believes it is possible or appropriate):

• Publish procurement pipelines giving as much foresight as possible so that SMEs have ample time to form consortia, scale up, or adjust operations in order to bid successfully.
  Undertake proportionate pre-market engagement to inform procurement design and widen SME participation.
• Engage with Business Wales to identify innovative SMEs and start-ups during market engagement.
• Ensure that the services of Business Wales are included in Invitation to Tender’s, Invitation to Quote’s.
• Use lotting strategies and proportionate requirements to improve accessibility for SMEs and VCSEs.
  Facilitate collaborative and consortium bidding where appropriate.
• Use strategic demand aggregation to strengthen Welsh supply chains and market resilience.
• Ensure fair and prompt payment throughout supply chains to improve cashflow, strengthen business resilience and support the sustainable growth of SMEs, VCSE’s operating in Wales.
• Use below-threshold flexibilities to reserve suitable contracts for SMEs, VCSEs based in your locality.
• Embed well-being outcomes that support jobs, skills and supply chain development.
• Include low-carbon delivery criteria in tenders to enable SMEs and VCSEs to compete on the strength of their proximity, responsiveness and environmental performance where applicable.
• Provide constructive feedback to suppliers following a procurement exercise to encourage continuous improvement.

Additionally, all WCAs (irrespective of whether they are within scope of the Social Partnership & Public Procurement (Wales) Act 2023) should apply the principles of socially responsible procurement throughout the procurement lifecycle, using procurement to improve economic, social, environmental and cultural well-being, strengthen supply chains and promote fair work. This will have the effect of creating opportunities for Welsh firms as they will often have strengths in these areas and can differentiate themselves from larger suppliers when tendering.

5. To what extent do you agree or disagree that the proposed outcome for SME growth and strengthening Welsh supply chains provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including what would make it easier for SMEs to compete for and win public contracts:

Community wealth building

Outcome: Improve fair access to public procurement for SMEs and voluntary, community and social enterprises (VCSEs), helping to strengthen local supply chains, retain value in Welsh communities and support the delivery of social, economic and community well-being

Procurement levers (where the WCA believes it is possible or appropriate):

• Undertake early and proportionate market engagement to understand the capacity, capability and barriers faced by SMEs and voluntary, community and social enterprise organisations.
• Design procurements in a way that is proportionate to the requirement, including financial thresholds, insurance levels, accreditation requirements and evidence requests.
• Break larger contracts into smaller lots, or design frameworks in a way that gives smaller, specialist and smaller suppliers a fair chance to bid.
• Publish pipelines and provide clear, accessible tender information so suppliers have time to prepare and understand future opportunities.
• Support consortium bidding, subcontracting and supply chain opportunities where this would improve fair access and wider participation.
• Include relevant and proportionate well-being outcomes that recognise the contribution smaller and community-based suppliers can deliver.

6. To what extent do you agree or disagree that the proposed outcome for community wealth building provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including how public procurement could better support SMEs, co-operatives, social enterprises and VCSE organisations:

Fair work

Outcome: Promote fair work by encouraging secure and rewarding employment, effective worker voice, equality, and safe and inclusive working practices that contribute to well-being and improved public service delivery

Procurement levers (where the WCA believes it is possible or appropriate):

• Consider fair work outcomes at the planning stage and identify where they are relevant and proportionate to the subject matter of the contract.
• Use specifications, award criteria and contract conditions, to encourage secure employment, fair reward, workforce development, equality and safe working practices.
• Encourage suppliers to demonstrate how they engage with their workforce and support effective worker voice, including through recognised trade unions or other appropriate workforce representatives.
• Apply relevant Welsh Procurement Policy Notes and the Public Services Outsourcing and Workforce Code, including ethical employment practices and social public workforce clauses / works clauses where applicable.
• Use contract management to monitor delivery of fair work commitments, including employment standards, workforce development, health and safety, equalities and supply chain practices.
• Use the Socially Responsible Procurement Annual report, where applicable, to demonstrate how procurement activity has contributed to fair work, well-being and improved public service delivery.

7. To what extent do you agree or disagree that the proposed outcome for fair work provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including what would make it easier for public procurement to support and promote fair work outcomes:

Innovation

Outcome: Support Welsh innovation by encouraging the development, testing and use of new and improved products, services and ways of delivering public services

Procurement levers (where the WCA believes it is possible or appropriate):

• Use early market engagement to understand Welsh business capability, emerging ideas and opportunities to improve public services through new or improved products, services and processes.
• Focus specifications on the outcomes to be achieved, rather than prescribing a fixed solution, so suppliers can propose innovative and practical ways to meet public service needs.
• Consider pilots, trials or demonstrator projects where appropriate to test new solutions, manage risk and build confidence before wider use.
• Encourage suppliers to bring forward new or improved products, services or processes that support better outcomes for people, communities, businesses and the environment in Wales.
• Use contract management and lessons learned to assess whether innovative approaches have improved service delivery, productivity, efficiency or outcomes.
• Use procurement to support digital transformation programmes that improve productivity, accessibility, service quality and user experience across the Welsh public sector.
• Encourage suppliers to bring forward innovative digital solutions, data-driven approaches and modern service delivery models that improve outcomes and efficiency.

8. To what extent do you agree or disagree that the proposed outcome for innovation provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including any solutions to encourage innovative businesses to participate in public procurement:

Foundational economy sectors

Outcome: Support our foundational economy where Welsh supplier capacity is realistic, such as food and timber production and processing, construction, maintenance, facilities management, social care and professional services

Procurement levers (where the WCA believes it is possible or appropriate):

• Ensure procurement practitioners complete the training (New Foundational Economy online learning resource – Cynnal Cymru – Sustain Wales) and align procurement strategies with Foundational Economy priorities.
• Consider how relevant food procurements can support the aims of the Wales Community Food Strategy, including resilient local food supply chains, sustainable production and healthier, more accessible food. 
• Strengthen Welsh supply chains by providing greater market certainty through pipeline visibility and long-term planning.
• Encourage procurement approaches that strengthen domestic supply chains and build local market capability.
  Promote collaboration, innovation and resilience across key sectors.
• Encourage consideration of Welsh-grown and Welsh-processed timber, food and steel in procurement specifications and market engagement.

9. To what extent do you agree or disagree that the proposed outcome for foundational economy sectors provides a clear and practical direction for public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including what would make it easier for public procurement to support and strengthen foundational economy sectors in Wales:

Understanding the impact of public spending

Outcome: Evidence how public spending is contributing to stronger communities, cultural well-being, the Welsh language and improved outcomes for Wales

Procurement levers (where the WCA believes it is possible or appropriate):

• Use the Welsh Themes, Outcomes and Measures system (TOMS) at the planning stage to select relevant and proportionate measures that reflect social value and community needs that maybe delivered through the contract.
• Build selected TOMs measures into specifications, award criteria, contract conditions and contract management arrangements where lawful, relevant and proportionate.
• Require suppliers to provide regular TOMs reporting during contract delivery to monitor whether social value commitments are being delivered, identify underperformance and support timely corrective action.
• Use TOMs data to measure its impact to inform future procurement decisions and include in the Socially Responsible Procurement Annual report where applicable.
• Provide an end of project case study project completion showing what has been delivered and performance against contract.

10. To what extent do you agree or disagree that the proposed approach to understanding and evidencing the impact of public spending provides a clear and practical direction?

Please explain your answer, including anything else you think should be measured:

Priorities and delivery

11. Priorities: from the list below what would you say are the 3 most important outcomes for your own geographical area?

Please select up to 3.

• More well-paid jobs, apprenticeships and skills opportunities
• Growth in SMEs and stronger Welsh supply chains
• Greater community wealth and more value retained locally
• More secure, fair work
• Greater access to innovative products, services and public service delivery
• Stronger foundational economy sectors
• Better evidence of the local impact of public spending

Any other comments:

12. Delivery barriers: for respondents from contracting authorities: what do you consider to be the main barriers to delivering the WPPS?

Please select all that apply.

• Skills or capability
• Staff capacity
• Cost or financial constraints
• Availability or quality of data
• Market or supplier capacity
• Legal or commercial uncertainty
• Contract-management capability
• Inconsistent approaches between public bodies
• Don’t know
• Other (please specify):

Please tell us about any particular barriers that should be addressed:

13. Implementation support: what guidance, tools, training or other support would help contracting authorities and suppliers implement the WPPS effectively?

Please provide details:

Access to public procurement

14. SME and VCSE access: if you are an SME, microbusiness, co-operative, social enterprise and VCSEs participating in public procurement please tell us which factors currently create the greatest barriers to bidding for public contracts?

Select all those that apply:

• Limited advance notice of opportunities
• Size of contracts
• Financial thresholds
• Insurance requirements
• Accreditation requirements
• Length or complexity of tender documentation
• Timescales for preparing bids
• Limited opportunities for consortium or collaborative bidding
• Digital procurement processes
• Payment terms or cashflow
• Lack of feedback following unsuccessful bids
• Other (please specify):

What changes would make the greatest difference?

Measuring success

15. Reporting SME and VCSE spend: to what extent do you agree or disagree that main contractors should be required to report the value of contract spend passed through their supply chains to SMEs, microbusinesses, VCSEs, co-operatives and social enterprises, using the Community Benefits Toolkit or another appropriate reporting mechanism?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer, including what would make it easier for main contractors to report supply chain spend through the Community Benefits Toolkit or another appropriate reporting mechanism:

16. Measuring outcomes: which measures would provide the most meaningful evidence of whether the WPPS is delivering its intended outcomes?

Please select up to 5:

• Spend with SMEs and microbusinesses
• Spend with VCSEs, co-operatives and social enterprises
• Spend with suppliers operating in Wales
• Jobs, apprenticeships and training opportunities
• Prompt-payment performance
• Fair work outcomes
• Supply-chain resilience
• Social value and community benefits
• Innovation delivered through procurement
• Environmental and decarbonisation outcomes
• Welsh language outcomes
• Other (please specify):

17. Themes, outcomes and measures and procurement data: to what extent do you agree or disagree that the proposed use of the Themes, Outcomes and Measures (TOMS) approach and procurement data will provide useful evidence of the impact of public procurement?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain:

Overall views

18. Overall strategic direction: to what extent do you agree or disagree that the draft WPPS provides a clear strategic direction for public procurement in Wales?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer:

19. Overarching priority: to what extent do you agree or disagree with the proposed overarching priority: ‘Strengthening the Welsh economy through public procurement’?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer:

20. Delivery framework: overall, to what extent does the proposed procurement approach provide a practical framework for delivering the WPPS priority and intended outcomes?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer:

21. Overall support: overall, to what extent do you support the proposed WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please explain your answer:

Integrated impact assessment (IIA)

22. Equality: do you agree that the draft equality impact assessment identifies the principal impacts associated with the WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please tell us about any additional positive or negative impacts, risks or unintended consequences that should be considered:

23. Children’s rights impact assessment: do you agree that the draft children’s rights assessment identifies the principal impacts associated with the WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please tell us about any additional positive or negative impacts, risks or unintended consequences that should be considered:

24. Health impact assessment: Do you agree that the draft health impact assessment identifies the principal impacts associated with the WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please tell us about any additional positive or negative impacts, risks or unintended consequences that should be considered:

25. Welsh language impact assessment: Do you agree that the draft Welsh language impact assessment identifies the principal impacts associated with the WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please tell us about any additional positive or negative impacts, risks or unintended consequences that should be considered:

26. Impacts: Do you agree that the draft data protection, biodiversity, rural proofing, sustainable land management, carbon impact, duty of quality (health) and socio economic impact assessments identify the principal impacts associated with the draft WPPS?

• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
• Don't know

Please tell us about any additional positive or negative impacts, risks or unintended consequences that should be considered (Data protection, Biodiversity, Rural proofing, Sustainable land management, Carbon impact, Duty of quality (health), Socio economic):

Welsh Language

27. Effects on the Welsh language: what, in your opinion, would be the likely effects of the draft WPPS on the Welsh language, particularly on opportunities to use the Welsh language and on treating the Welsh language no less favourably than English? How could positive effects be increased or adverse effects mitigated?

28. Changes to the draft WPPS: could the draft WPPS be changed so that it has positive, or more positive, effects on opportunities to use Welsh and treating Welsh no less favourably than English, or reduces any negative effects?

29. Other Welsh language comments: if you have any other comments relating to the Welsh language that you have not covered in Questions 23 and 24, please provide them here.

Submit your comments by 28 January 2027, in any of the following ways.

• Complete our online form
• Download, complete our response formand email to DraftWPPS.Consultation@gov.wales
• Download, complete our response form and post it to:

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