The End of Outsourcing by Default

Why the new procurement reforms offer positive opportunities for Facilities Management – by Martyn Freeman, CEO of Q3 Services

Public sector procurement in the UK is entering a new era.

With the introduction of the National Procurement Policy Statement (NPPS) in 2025, alongside the Procurement Act 2023, the Government has made its expectations clear: public procurement must deliver more than the lowest price. It must deliver national value.

For Facilities Management, this marks a decisive shift away from outsourcing as the default option and towards a more deliberate, outcomes‑driven approach. At Q3 Services, we welcome this change. Not because it makes procurement easier, but because it makes it better.

From Cost to Contribution: A Fundamental Change in Direction

The NPPS places a statutory obligation on public bodies to consider how procurement decisions support wider government priorities including economic growth, resilience, social value, and sustainability.

Crucially, departments must now test whether services could be delivered more effectively in‑house before outsourcing major contracts. Outsourcing must be justified in the public interest, not assumed by default.

In my opinion, this is a healthy reset.

For too long, FM procurement has been overly shaped by price competition and scale. The new framework recognises that value is not just what a service costs, but what it contributes to service quality, local economies, workforce stability, and long‑term resilience.

What the New Framework Signals for FM Providers

1. Outsourcing Must Add Something the Public Sector Can’t Replicate

The introduction of a public interest test fundamentally changes the role of outsourced FM.

Public bodies now need clear evidence that an external provider brings specialist capability, innovation, or delivery models that cannot be easily delivered internally. Cost alone is no longer a sufficient rationale.

At Q3, our approach has always been about enhancing, not replacing, internal teams. We focus on areas where specialist expertise, data‑led insight, and integrated service models improve outcomes across estates, whether that’s compliance, performance, user experience, or continuous improvement.

The NPPS will rightly reward that mindset.

2. Procurement as a Tool to “Back Britain”

The new policy framework places a strong emphasis on domestic resilience and local impact. Public procurement is now explicitly positioned as a lever to support British jobs, skills, and supply chains. For FM, this really matters.

Facilities services are delivered by people, in workplaces, every day. Cleaning teams, engineers, security staff, and supervisors are embedded in local communities. When procurement values local employment, fair work, and UK‑based supply chains, it naturally aligns with how high‑quality FM is delivered.

At Q3, we see this as long‑overdue recognition that good FM is local, relational, and people‑centred, not simply transactional.

3. A Level Playing Field for Specialist SMEs

The Procurement Act reforms also aim to remove unnecessary barriers for SMEs, using simplified digital processes and a “tell-us-once” approach to bidding. This is good news for the smaller players in the FM sector.

Innovation in facilities management often comes from specialist providers, particularly British SMEs operating in areas such as sustainability, compliance, workplace technology, and energy management. By making procurement more accessible, the Government is encouraging a more diverse and capable supplier ecosystem.

Q3 actively supports this direction by building agile supply chains that prioritise expertise, reliability, and ethical delivery over sheer scale.

Social Value: From Promises to Proof

One of the clearest messages from the NPPS is that social value must now be delivered, measured, and reported, not just referenced in bids.

For larger contracts, annual reporting is mandatory. This moves social value from aspiration to accountability.

For Q3, this isn’t a challenge; it’s confirmation of the right approach. We believe social value should be designed into services, not bolted on at tender stage. Local employment, skills development, carbon reduction, and fair treatment of people are all outcomes that directly improve service quality and long‑term value for clients.

A Better Question for a Better System

The Procurement Act 2023 and the National Procurement Policy Statement are not anti‑outsourcing. They are anti‑lazy outsourcing.

They challenge clients and providers alike to ask a more intelligent question:

Not “Can this be done cheaper?”
But “Does this deliver better outcomes for people, places, and the public purse?”

At Q3 Services, we support this approach wholeheartedly. We believe it creates the conditions for stronger partnerships, better services, and a more resilient FM sector. One that genuinely serves the national interest.

We welcome the conversation this reform has started, and we look forward to working with public sector partners who see facilities management not as a commodity, but as a strategic contributor to public value.