Lotting has long been promoted as a way to improve access for SMEs and VCSEs. Under the Procurement Act 2023, that objective remains important, but councils need to approach it carefully.
The question is not simply whether to use lots, but how to structure them in a way that supports competition without creating unnecessary delivery risk.
Why this matters now
Authorities are under continued pressure to widen participation and demonstrate social value.
Lotting can help achieve that, but only if it is designed with a clear understanding of the market and the contract requirements.
The practical considerations
Smaller lots may attract more bidders, but they can also increase the complexity of contract management.
Authorities need to consider how multiple suppliers will be coordinated, how performance will be monitored and how risks will be managed across different providers.
What good lotting looks like
Effective lotting reflects both market capacity and service needs.
It should create genuine opportunities for suppliers without fragmenting delivery in a way that undermines outcomes.
What councils should do now
Review upcoming procurements and consider whether lotting would improve competition.
Engage with the market to understand supplier capability and interest.
Ensure that contract management arrangements are robust enough to handle multiple suppliers where lots are used.
Councils looking for practical tools and guidance on structuring procurements can use the Prestige Commercial Consulting support hub.
The takeaway
Lotting can be a powerful tool, but it is not a simple solution.
Councils that design lots carefully will support participation and maintain delivery confidence. Those that apply it without planning may create more problems than they solve.