The government is developing a first-of-its-kind digital marketplace for reviewing technology suppliers and accessing pre-approved technology deals, set at national prices.
Known as the National Digital Exchange (NDX) the new system will unlock £1.2 billion in savings, reduce the time spent on procurement and provide new tools for public servants to rate suppliers.
The platform will feature an AI engine which matches public sector buyers with suppliers in hours, rather than months, as was the case historically
Improving legacy procurement practices
This development follows the State of Digital Government review, released in January, which revealed that the government's procurement practices have not adapted to a market shift towards in-house hardware provision and technological development.
It found that pockets of digital and data procurement expertise exist across departments, but that buying is typically conducted by generalists. It estimates that 250 more digital specialists are required to meet procurement needs.
In local government, 320 councils were found to be independently negotiating technology contracts despite typically using similar tools to do so, reducing bargaining power.
Minister for AI and Digital Government, Feryal Clark said: "We’ve all heard the stories - months of red tape, tech that doesn’t deliver, and money wasted. That’s not good enough for the people we serve."
She added: "The National Digital Exchange aims to change that. It will make it faster, fairer, and focused on what works - with real reviews, upfront pricing and smart AI to match buyers with the right suppliers in hours."
Procurement for the future
The platform is designed to operate like an app store, where government officials will be able to review suppliers promoting cross-governmental knowledge of which tools have delivered and where performance has been weaker.
Designed to open up the market to more UK tech firms, the platform is set to boost small business involvement in government contracts by 40% in three years.
Developing alongside the platform is a new "digital playbook" guiding officials towards best practice in technology procurement, ensuring long term consequences and social value are considered.
Lucy Baldwin
