Government Commercial Function issues guidance for public bodies on procuring innovative solutions

The GCF said the principles and policies set out in the Playbook should be applied by central government departments and their arm’s-length bodies on a ‘comply or explain’ basis.

“The wider public sector should also take this guidance into account, applying it proportionately to the scale, scope, and complexity of their projects," it added.

The Playbook covers:

• What is meant by innovation
• Key messages
• Types of Innovation Funding
• Preparation and Planning
• Procurement Routes
• Adopting an Agile Approach
• The Contract
• Annex A: Innovation procurement: Key process steps and involved parties
• Annex B: Innovation Procurement Case Studies
• Annex C: Innovation Route Map

The key messages are: identify opportunities; leadership and sponsorship are essential; adopt a proportionate and agile approach; embrace risk and iterative learning; engage the market early and continuously; appropriate ownership of intellectual property; and balance risk and reward holistically.

The final key message relates to compliance with procurement law, with the Playbook noting that the guidance is “not intended to cover the application or requirements of the Procurement Act 2023 in detail, which will turn on the particular facts of the innovation project being undertaken and its structure. Early engagement with commercial and legal teams to consider such issues is strongly recommended.”

Writing in the foreword, National Technology Adviser Dr David Smith said the Playbook is intended to be “a practical guide for commercial leads and programme delivery teams who want to get better solutions for the country and use procurement to unlock innovation, and to do so while staying firmly grounded in value for money, good governance and deliverable outcomes”.

Dr Smith wrote: “Across public services, commercial and programme leaders should be able to pursue innovation with confidence: setting clear outcomes, building proportionate controls, and taking well‑judged, well‑governed risks that stand up to scrutiny. Avoiding all risk has a cost too—missed opportunities, over‑reliance on a small number of dominant suppliers and losing great firms and solutions to other countries.”

He added: “This playbook is designed to help you turn that ambition into action on real programmes. It offers a clear route from defining the challenge through to delivery—showing how to frame problems so the market can bring forward better options, and how early market engagement can broaden participation, including from SMEs and new entrants.

"It sets out practical ways to use proportionate governance, agile methods and multidisciplinary teams, so projects can adapt as learning emerges without losing control of scope, cost and risk.

"And it explains how the new Competitive Flexible Procedure under the Procurement Act can support iterative testing, prototyping, phased development and scaled commercial contracts—giving you the freedom to refine requirements as solutions mature, while maintaining a strong audit trail and clear decision points."