Draft Wales Procurement Policy Statement (WPPS)

Public procurement is one of the most powerful tools we have to shape the Wales we want to see.

Every year, around one third of all Welsh public money is spent on procuring the goods, services and works that keep our communities running, from schools and hospitals to transport, housing, care, digital services and major infrastructure. That spending must do more than purchase what is needed today - it must help build the economy, services and opportunities Wales needs for the future.

The Wales Procurement Policy Statement (WPPS) sets out a clear strategic vision for how public procurement can support that ambition. It places procurement at the heart of delivery not as a back-office process, but as a vital lever for economic development, stronger public services, fair work, resilient and sustainable supply chains and better outcomes for people and communities across Wales.

Our ambition is to use Welsh public spending to deliver greater value for Wales. That means supporting stronger local and regional supply chains, helping Welsh businesses compete, creating opportunities for small and medium-sized enterprises, and ensuring that more of the value generated through public contracts is retained in Wales. It also means using procurement to drive innovation, improve well-being and contribute to a stronger, fairer and more sustainable economy.

Sustainability is a cross-cutting expectation of this WPPS. Welsh contracting authorities (WCAs) should use procurement to support net zero, reduce waste, apply circular economy principles, consider whole-life costs and carbon impacts, and protect the natural environment for future generations.

This WPPS supports the Programme for Government by translating wider ministerial commitments into clear procurement expectations for WCAs providing them with the strategic direction and practical framework to make that happen. By taking an outcome-led approach, public bodies can plan earlier, engage markets more effectively, manage contracts more actively and make procurement decisions that deliver lasting benefits beyond the immediate purchase.

Those WCAs that are required to have regard to the WPPS must do so when exercising their public procurement functions in relation to expenditure derived from Welsh public funds. They should apply their judgement in determining how the principles of the WPPS are relevant to their procurement activity. This flexibility is important, but so too is our shared responsibility to ensure public procurement consistently supports Welsh Government priorities and delivers the maximum possible benefit from every pound spent.

Procurement has the ability to shape markets, strengthen Welsh businesses, support jobs and skills, and improve outcomes for people. Used well, it is not simply a spending function — it is a nation-building tool.

Through this WPPS, we are setting a clear expectation that Welsh public procurement should be progressive, purposeful and focused on delivering value for Wales. Together, we can use it to build a stronger, sustainable Welsh economy, more resilient communities and a more prosperous future for all.

The following contracting authorities must have regard to the WPPS:

• devolved Welsh authorities, except when carrying out procurements under a reserved procurement arrangement or transferred Northern Ireland procurement arrangement, and 
• non-devolved Welsh authorities when carrying out procurements under a devolved Welsh procurement arrangement.

This does not apply to:

• private utilities, or
• procurements for the award of a contract under a framework agreement or a dynamic market. 

Some WCAs are not legally required to have regard to the WPPS. However, the Welsh Government strongly encourages them to do so.

Section 111 of the Procurement Act 2023 defines “devolved Welsh authority”. Section 114 defines “devolved Welsh procurement arrangements”, “reserved procurement arrangement” and “transferred Northern Ireland procurement arrangement”.

The “have regard” duty does not require a particular outcome, but WCAs must be able to show they have consciously considered the WPPS, given it proper weight, and done so before making relevant procurement decisions.

In practice, this means building WPPS consideration into procurement planning, decision-making records and approval processes, rather than treating it as a tick-box exercise.

Failure to do so could make decisions vulnerable to legal challenge, delay and reputational risk. Therefore, it is advisable to keep a clear audit trail showing how the WPPS was considered when taking procurement decisions and why the final approaches were taken.

WCAs are reminded that they must not take any action in accordance with this WPPS which would conflict with any obligation relating to existing relevant legislation or public procurement requirements.

Nothing in this WPPS should conflict with the UK government’s international trade obligations, or with their obligations to procure goods, works and services in an open, fair and transparent manner whilst guarding against fraud and corruption.

To support effective implementation of this WPPS, the Welsh Government will provide learning materials, guidance and practical resources to help procurement practitioners understand and apply its requirements with confidence. These resources will support consistent interpretation, proportionate application and good practice across the procurement lifecycle, including planning, market engagement, tendering, contract management, reporting and the delivery of wider well-being outcomes.

The potential considerations and intended outcomes refer to concepts under the Well‑being of Future Generations (Wales) Act 2015 (the “Act”). Most, but not all WCAs are included in the Act. The Act places a duty on those WCAs to carry out sustainable development. The Welsh Government therefore recognises that not all WCAs are required to set and publish well-being priorities or to work to achieve the seven well-being goals, but it encourages each WCA to consider how its procurement activity can contribute to sustainable development. For further information on the Act, please visit: The Well-being of Future Generations.

Socially responsible procurement duties and the WPPS

For WCAs required to prepare annual reports under the Social Partnership & Public Procurement (Wales) Act 2023, the WPPS provides a clear basis for explaining how socially responsible procurement is contributing to Welsh Government priorities. Reporting should be more than a compliance exercise: it should show how WCAs are using procurement deliberately and strategically to deliver fair work, social value, sustainable outcomes and wider benefits for Wales.

Cross-cutting commitment 

Procurement should be used to improve the social, economic, environmental, cultural and health well-being of Wales, reduce inequalities, support prevention and early intervention, strengthen Welsh-speaking communities, promote the Welsh language, and deliver long-term value for current and future generations.

Measuring success

Legislation requires that the right processes are followed, but success is measured by achieving and managing delivery of the right procurement outcomes and benefits throughout the life of a contract.

WCAs should be able to demonstrate, through supplier reporting and annual reporting where applicable, how procurement activity has delivered tangible benefits for Wales, including stronger and more sustainable supply chains, fair work, social value, environmental improvement, better community outcomes, reduced inequalities, cultural well-being, the Welsh language, improved health and well-being outcomes and value for money.

Robust contract management is essential to turn those commitments into measurable outcomes, ensuring supplier performance is monitored, reported and addressed throughout the life of the contract.

Success would include evidence of:

• Increased economic value from procurement
• Greater retained value in Wales
• Stronger and more sustainable Welsh supply chains
• Improved economic outcomes
• Improved supplier and market engagement, and
• Better well-being and environmental outcomes.

Success will also be measured by the consistent use of the Welsh Themes, Outcomes and Measures system (TOMS) to identify, measure and report outcomes across relevant procurements and contract management.

Strengthen the Welsh economy

This priority reflects the Programme for Government’s emphasis on building a stronger, fairer and more resilient Welsh economy.

Procurement should be used as a strategic lever to achieve the following 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.
• SME 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 local small and medium-sized enterprises (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.

Delivery Framework

This section provides guidance to support WCAs in delivering the Welsh Government’s priority, understanding the intended outcomes, and identifying procurement levers that can be used to achieve them.

The procurement levers do not constitute an exhaustive list of what WCAs may wish to consider when running a procurement exercise or managing a contract. The Welsh Government procurement policies can be found at GOV.WALES.

The following are examples of procurement approaches that can help create the conditions for Welsh firms to tender for and win public contracts successfully:

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

• 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.

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

• 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.

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

• 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.

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

• 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.

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

• 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.

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

• 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.

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

• 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.