Advanced Commercial Judgement in Procurement
Strategy and MAT
From MEAT to MAT
The Procurement Act 2023 marks a significant shift in how public sector organisations evaluate tenders. It moves away from awarding contracts based on the 'Most Economically Advantageous Tender' (MEAT) to selecting the 'Most Advantageous Tender' (MAT). While MEAT often led to a heavy focus on the lowest price, MAT encourages a broader view of value.
While the shift from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender) might seem subtle on paper, its implications for public sector procurement are profound.
This change empowers contracting authorities to use their commercial judgement. Instead of being anchored to price and quality metrics alone, you can now formally consider a wider range of factors that contribute to the public good. It's a move from a rigid, cost-driven formula to a more flexible, outcome-focused assessment.
Maximising Public Benefit
At the heart of the MAT philosophy is Section 12 of the Act, which mandates that contracting authorities must aim to maximise the 'public benefit'. This isn't just a suggestion; it's a legal requirement. Public benefit is defined as improving the economic, social, and environmental well-being of the United Kingdom. This means your procurement strategy can, and should, contribute to national strategic priorities.
This requires you to think like a strategist, not just a compliance officer. The question is no longer just 'What is the cheapest compliant bid?' but 'Which bid delivers the best overall value for the community and the country?'
To guide this, the government has issued the National Procurement Policy Statement (NPPS). This document outlines the key outcomes that procurement should help achieve. These include creating new businesses, jobs, and skills; tackling climate change and reducing waste; and improving public services. Your procurement decisions are a direct tool for implementing this national policy.
The Golden Thread
To apply MAT effectively, there must be a 'golden thread' running from your organisation's strategic objectives all the way through to your tender specifications and evaluation criteria. This ensures that what you buy is directly linked to the value you are trying to create. The business case for a procurement shouldn't be a document that just sits on a shelf; it should be the foundation for every decision that follows.
This clear linkage is crucial. If your objective is to support local employment, your tender specifications can include requirements for local supply chain engagement or apprenticeships. These are no longer 'nice-to-haves' but are legitimate and important award criteria under MAT. Your use of commercial judgement is key to defining 'advantageous' in a way that aligns with your specific strategic goals, rather than just ticking a box for compliance.
| Evaluation Model | Price Weighting | Quality Weighting | Social/Environmental Weighting |
|---|---|---|---|
| MEAT (Typical) | 60% - 80% | 20% - 40% | 0% - 10% (often minimal) |
| MAT (Example) | 30% - 50% | 30% - 50% | 15% - 25% (explicitly valued) |
This table illustrates the potential shift in focus. Under MAT, you have the flexibility to give significant weight to factors beyond the immediate price tag. For instance, a bid might be more expensive upfront but offer long-term savings through higher energy efficiency, or it might create more local jobs. These are now quantifiable and essential parts of the value equation.
The transition to MAT is a fundamental change in mindset. It demands that procurement professionals act as strategic partners within their organisations, using their commercial expertise to translate high-level policy into tangible public benefit.