Should we see the requirements set out in public procurement contracts as the first signs of new expectations for private companies?

Sana Lirin-Hales

Co-founder, Head of Consulting – La Nouvelle Agence

Should we see the requirements set out in public procurement contracts as the first signs of new expectations for private companies?
Illustration — La Nouvelle Agence

Aurélie Schmit, Partner and Head of PR & Public Procurement Projects, guides us through this scenario and shares some best practices that will be useful to everyone.

Calls for tenders for public procurement are based on highly technical specifications, where nothing is left to chance. And recently, the selection criteria have been reassessed once again to bring them into line with societal changes and the demand for integrity from both citizens and regulatory bodies. If this trend continues, it is highly likely that it will eventually spill over into the private sector, prompting companies to enhance their ability to be selected. After all, tender process or not, a company’s fate remains dependent on being chosen by consumers, public opinion or potential partners. Here are a few examples of strategic factors that could now carry greater weight in the decision-making process:

Social and environmental commitments

Public contracting authorities now place increasing importance on companies’ compliance with social and environmental responsibility criteria, as these account for between 5 and 30 per cent of the final score. Since the Climate and Resilience Act came into force on 2 May 2022 – and in particular Article 35 thereof – financial criteria can no longer be the sole determining factor in the award of a contract. This now also applies to private organisations; incorporating CSR into your strategy is therefore no longer merely an advantage, but an absolute necessity if you are to be considered. This may involve highlighting projects that have reduced environmental impact (e.g. reducing CO₂ emissions, implementing a circular economy) or initiatives promoting social inclusion (e.g. employing people facing social exclusion or with disabilities).

The importance of a network of partners

Building a strong network is a key step towards success in public procurement. The same applies to businesses seeking to open up new opportunities and achieve growth: micro-enterprises, SMEs or organisations lacking experience in specific areas can thus strengthen their capabilities and broaden their scope of expertise. Whether it is a matter of pooling skills to put forward a more comprehensive tender, increasing one’s delivery capacity to bid for larger contracts, or meeting specific technical requirements, collaboration – provided it is coherent and well-thought-out – will always enhance innovation and the quality of service provided.

The central role of references

References and experience are essential in convincing public procurers that a company has the capacity to deliver the proposed project. This requirement for recommendations and/or the demonstration of a track record on similar projects is also becoming increasingly important for private companies, including in their dealings with end consumers. To achieve this, and drawing inspiration from public procurement, companies are encouraged to highlight similar projects by describing the scope of work and the results achieved, in order to showcase their expertise and know-how in an engaging manner. Testimonials from satisfied customers will become increasingly crucial, as potential buyers place great value on social proof as a source of reassurance.
In this regard, letters of recommendation and client testimonials regarding completed projects serve to bolster credibility and demonstrate that the company already has a track record of success in similar contexts. On a day-to-day basis, this approach can feed into a brand’s communication channels to strengthen its brand equity.

Ultimately, to be selected – whether in a private tender or in the normal course of business – it will be essential not only to tell your story but, above all, to back it up with evidence. This evidence is more subtle and substantial than mere price leadership, as today’s players are primarily assessed on their contribution to the world, their social impact and their ability to prove their credentials by belonging to reputable networks and showcasing the successes they have achieved along the way.