The Crown Commercial Service has eased tensions with the wholesale industry by clarifying its plans for the single supplier model for public sector food procurement.
Wholesalers had previously expressed concerns about the proposals drawn up by the CCS, which were thought to propose a tender for one single operator to supply food and drink products to the entire public sector.
The initial plans were widely criticised over fears that regional wholesalers currently supplying public institutions could be frozen out.
However, in a new document uploaded to the CCS website, the government clarified that the scheme would not replace any previous agreement.
It also said that the policy would only constitute an estimated £100m spend over a four-year period.
This spending estimate, which the government does not expect to exceed, will represent just 5% of the total annual £2.1bn public sector food spend.
In addition, the document revealed that the new scheme would only be implemented on a trial basis, with regular reviews taking place across its lifespan.
“In essence the first iteration of this agreement will serve as an exploratory venture,” said the CCS in the document.
“Once we have reviewed and conducted lessons learnt we will decide how or even if the agreement is re-let.”
The government had previously focused on the potential cost-saving benefits of the scheme. However, it has also now sought to downplay this element of the policy.
“The value aspect of this agreement is not a key driver for CCS,” it said. “The overriding objectives are to offer customers another alternative in the marketplace that is easy to use, provides a simplified route to market.”
Dunsters Farm commercial director Tom Mathew said: “The news that this seems to be more of a trial and less of commited course of action is extremely welcome.
”Although I still have some concerns about the overarching structure of the agreement, it’s an extremely positive thing for the industry that there has been some clarification, co-operation and engagement on this issue.”
A government spokeswomen said: “Crown Commercial Service’s Buying Better Food agreement will support the wider public sector to access local, seasonal produce in a sustainable and efficient way.
“We are still in the development and engagement phase of this agreement, and are seeking feedback from suppliers.”
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