The Procurement Act 2023, effective from 24th February 2025, marks a significant overhaul of public sector procurement in the United Kingdom. This legislation aims to streamline procurement processes, enhance transparency, and create a more accessible environment for suppliers, particularly small and medium-sized enterprises (SMEs), start-ups, and social enterprises.
Key Reforms Introduced by the Procurement Act 2023
The Act introduces a new ‘competitive flexible’ procedure designed to simplify bidding, negotiation, and collaboration with the public sector. This change aims to reduce bureaucratic hurdles, making it easier for suppliers to participate in public procurement opportunities.
Previously, suppliers could be excluded from commercial frameworks for extended periods, limiting their access to public contracts. The new legislation opens up these frameworks, allowing more suppliers to compete and ensuring that they are not unjustly excluded from potential opportunities.
One of the Act’s primary objectives is to level the playing field for smaller businesses and voluntary, community, and social enterprises (VCSEs). By removing bureaucratic barriers, these entities can now compete more effectively for public contracts. Additionally, the Act strengthens provisions for prompt payment throughout the supply chain, mandating 30-day payment terms on a broader range of public sector contracts.
To foster continuous improvement and transparency, public bodies are now required to provide consistent feedback to suppliers. This includes detailed bid assessments for final tenders, enabling suppliers to understand their evaluation and identify areas for enhancement in future bids.
The Act launches the ‘Find a Tender’ service, a central digital platform that simplifies the contract bidding process. Suppliers can register and store their business details, facilitating their participation in multiple bids and increasing the visibility of procurement opportunities.
A significant innovation of the Act is the creation of the Procurement Review Unit. The PRU oversees public procurement, engaging with contracting authorities and suppliers to elevate standards across sectors. Building upon the existing Public Procurement Review Service (PPRS), the PRU addresses concerns related to procurement procedures and late payments.
The construction sector stands to benefit considerably from the reforms introduced by the Procurement Act 2023. The Act encourages main contractors to consider the ‘Most Advantageous Tender’ (MAT) rather than solely focusing on the ‘Most Economically Advantageous Tender’ (MEAT). This shift allows for factors such as project timelines and local engagement to be prioritized over mere cost considerations.
Furthermore, the Act introduces a debarment list to prevent underperforming subcontractors from securing future contracts, promoting higher standards and accountability within the industry.
To align with the Procurement Act 2023, suppliers should:
- Familiarise Themselves with the Act: Understand the new procedures and requirements to ensure compliance and leverage new opportunities.
- Register on the ‘Find a Tender’ Platform: This will streamline the bidding process and increase visibility to public sector contracts.
- Engage with the Procurement Review Unit: Address any concerns or seek guidance to navigate the new procurement environment effectively.
The Procurement Act 2023 represents a pivotal shift in public sector procurement, fostering a more inclusive, transparent, and efficient system. By embracing these reforms, suppliers and contractors can position themselves to thrive in the evolving landscape of public procurement in the UK.
