North East tech firms urge closer procurement ties

Dynamo North East has called for closer collaboration between public sector commissioners and regional technology businesses on procurement. The appeal is set out in a new report based on a leadership forum in the North East.

Reimagining Procurement and Social Value draws on discussions involving representatives from the technology, public, private and voluntary sectors. It identifies three recommendations: stronger engagement between commissioners and the regional technology sector, more support for testing and adopting technology-led innovation, and better evidence on procurement and social value.

The findings reflect concern among regional technology leaders that public procurement does not yet do enough to support smaller firms or create opportunities to trial new products and services. The report also examines barriers facing smaller businesses and considers how procurement decisions can deliver social value for local communities.

Dr David Dunn, chief executive officer of Dynamo North East, said: "Public sector spend is a huge untapped opportunity to both drive innovation in public service delivery and support the growth of our regional tech sector.

"One of the powerful messages that came through in this Dynamo Leadership Forum was the desire from both sides to learn more about each other. For the public sector to better share the challenges it wants to overcome, and for the tech sector to share new ideas and innovations.

"Hopefully this report helps keep that conversation going and leads to more opportunities for North East businesses."

Barriers for SMEs

A central theme in the report is the difficulty smaller businesses can face in accessing public sector contracts. Technology companies in the region want earlier and more direct contact with public buyers, arguing that engagement before formal tendering could help commissioners understand what local suppliers can offer and help suppliers prepare for upcoming opportunities.

The report links this to wider concerns about market access in the public sector. For regional firms, procurement processes can be difficult to navigate, particularly when requirements are complex or businesses have no clear route to discuss possible solutions with buyers before specifications are fixed.

NEPO, the public buying organisation governed by the 12 North East local authorities, said engagement between buyers and businesses is an important part of creating a stronger supplier market.

Keith Lamb, social value and supplier coordinator at NEPO, said: "Creating opportunities for meaningful engagement between buyers and regional businesses is essential to developing a strong and competitive supplier market. The Procurement Act places greater emphasis on reducing barriers for SMEs, and early engagement plays a key role in achieving this.

"Continuing that dialogue helps businesses better understand public sector opportunities, while giving commissioners greater insight into the capabilities, innovation and local expertise available across the North East. By working together earlier in the procurement journey, we can create a more accessible, competitive and resilient marketplace that delivers value for our communities."

Testing ideas

Another recommendation focuses on creating more scope to test new technology. Forum participants said procurement frameworks should do more to support trialling and adoption where new tools or services could improve public service delivery.

That reflects a longstanding tension in public procurement, where commissioners must balance compliance and value for money with the risks attached to unproven approaches. Regional technology leaders argue that without routes for testing, smaller companies can struggle to demonstrate their offer in real-world settings, limiting their ability to compete with larger, established suppliers.

The report's focus on social value broadens the debate beyond contract price. Procurement can also be used to support wider community benefits, and the report explores how those benefits might be better evidenced and measured.

This emphasis on evidence forms the third recommendation. Participants said stronger data and clearer assessment of outcomes would help public bodies understand whether procurement approaches are delivering benefits for local businesses, public services and communities.

Regional focus

Dynamo North East is a not-for-profit membership body for the region's technology sector, bringing together businesses, public sector organisations, education providers and strategic partners. Its report suggests procurement reform in the North East should focus not only on process, but also on how commissioners and suppliers work together before contracts are awarded.

The involvement of stakeholders from across sectors indicates that the debate extends beyond technology companies alone. Public bodies, voluntary organisations and private sector participants all took part in the leadership forum that informed the report, pointing to a broader regional discussion about how spending decisions can support local economic activity while meeting service needs.

For North East technology businesses, the issue is also one of visibility. Better contact with commissioners could give firms a clearer sense of the problems public organisations want to solve, while giving buyers more direct exposure to local products, services and expertise.

The report's recommendations stop short of prescribing specific procurement models, but set out a case for earlier engagement, more room for innovation and stronger evidence on social value.