The Procurement Act 2023 is set to bring significant changes to how public sector contracts are awarded in the UK. With new rules, streamlined processes and fresh opportunities, it’s essential for all suppliers — whether large corporations, small businesses, or individual contractors — to understand these changes and adjust their approach accordingly.
The Cabinet Office announced on 12 September 2024 that the Act will now come into force on 24 February 2025, following a four-month delay from the original date of 28 October 2024. This extension provides additional time to finalise the new National Procurement Policy Statement (NPPS).
Understanding the Procurement Act 2023
The Procurement Act 2023 aims to modernise public procurement in the UK by replacing outdated regulations with a more efficient, transparent and accessible system. This overhaul is designed to simplify processes, promote fairness and increase access for a wider range of suppliers.
Key Changes Introduced by the Act
The new legislation brings several important updates that suppliers should be aware of:
Simplified Procedures: The Act introduces easier and more straightforward procurement processes, making it simpler for suppliers to participate in public tenders.
Greater Transparency: It requires more openness throughout the procurement cycle, from early market engagement to the awarding of contracts. This transparency helps suppliers better understand opportunities and evaluation criteria.
Emphasis on Social Value: The Act highlights the importance of social value in procurement decisions. Public sector buyers will now consider factors like environmental impact, community benefits and ethical practices in addition to price and quality.
Stronger Protections for Suppliers: New measures are in place to ensure that suppliers are paid promptly and treated fairly throughout the procurement process.
Core Principles of the Procurement Act 2023
The Act is built on three fundamental principles:
Transparency: Ensures that procurement processes are open and clear, allowing all suppliers a fair chance to compete.
Fair Treatment: Guarantees that all suppliers are treated equally, regardless of their size or experience.
Value for Money: Focuses on achieving the best overall value by considering price, quality, social value and other relevant factors.
Benefits for Suppliers
The Procurement Act 2023 offers several advantages for suppliers looking to secure public sector contracts:
More Opportunities: Simplified processes and increased transparency open the door for a broader range of suppliers to compete.
Fair Competition: The emphasis on fair treatment ensures that all suppliers, regardless of their size, have an equal chance to win contracts.
Clear Guidelines: The Act provides more straightforward rules, helping suppliers prepare more competitive bids.
Enhanced Security: Stronger protections give suppliers greater confidence when dealing with public sector contracts.
Benefits for Public Sector Organisations
Public sector organisations also benefit significantly from the new Act:
Better Use of Public Funds: The focus on value for money ensures that funds are spent wisely to achieve the best outcomes.
Broader Supplier Base: Simplified processes attract a wider range of suppliers, promoting competition and innovation.
Efficient Procedures: Streamlined processes save time and resources for both buyers and suppliers.
Increased Public Confidence: Greater transparency and fairness build trust in the procurement system.
How to Comply with the Procurement Act 2023
Certification and Standardisation
The Procurement Act 2023, together with new guidelines such as PPN 03/24, introduces more stringent requirements for suppliers. Achieving the right certifications is crucial to demonstrating compliance and securing public sector contracts.
The Common Assessment Standard
From June 2024, public sector buyers are required to use the Common Assessment Standard to assess their supply chains. This new standard replaces PAS 91 and simplifies the pre-qualification process for suppliers.
Key Advantages:
Mandatory Requirement: Certification under the Common Assessment Standard will become essential for bidding on public contracts.
Simplified Pre-Qualification: The standard makes the pre-qualification process faster and less resource-intensive.
Increased Credibility: Being certified demonstrates a commitment to quality, safety and ethical practices.
Broader Access to Contracts: Some opportunities may be available only to certified suppliers.
Key Documents for Public Tenders
When bidding for public contracts, suppliers must provide various documents, including:
Pre-Qualification Questionnaires (PQQs): Demonstrate your suitability for the contract.
Technical Specifications: Outline how you will meet the requirements.
Method Statements: Explain your approach to delivering the contract safely and efficiently.
Risk Assessments: Identify potential risks and how they will be managed.
Insurance Certificates: Provide proof of adequate coverage.
Financial Records: Share financial statements to demonstrate stability.
Legal Requirements to Consider
Public procurement is governed by several key legal frameworks:
Public Contracts Regulations 2015: Ensures fair competition and compliance in the awarding of public contracts.
Equality Act 2010: Prohibits discrimination and requires inclusive practices.
Data Protection Act 2018: Regulates how personal data is managed during the procurement process.
Compliance with these laws is essential to avoid penalties and maintain eligibility for public sector contracts.
Accreditations: A Competitive Advantage
Certifications such as CHAS Elite and Constructionline Gold can give suppliers a significant edge. These accreditations:
Demonstrate Health and Safety Compliance: Essential for many public sector contracts.
Enhance Credibility: Accredited suppliers are often viewed as more reliable and professional.
Simplify Pre-Qualification: Help streamline the bidding process by pre-verifying compliance.
Maximising Opportunities Under the Procurement Act 2023
To make the most of the opportunities available under the new Act:
Understand the Requirements: Familiarise yourself with the Act’s provisions and how they affect your business.
Get Certified: Pursue relevant certifications such as the Common Assessment Standard through CHAS.
Prepare Thorough Documentation: Ensure all required documents are accurate and up-to-date.
Stay Compliant: Adhere to all relevant legal frameworks.
Where to Find Public Tenders
Public sector tenders in the UK are advertised across various platforms, including:
Find a Tender Service (FTS): This is the official UK government portal for high-value public procurement opportunities. High value contracts are usually above £139,688, including VAT.
Contracts Finder: Specifically designed for lower-value contracts, worth over £12,000 (including VAT) with the government and its agencies.
Other Platforms: Some contracting authorities may also advertise on their own websites or through industry-specific platforms. Keeping an eye on these sources can help you spot niche opportunities.
Exclusions & Debarment
Suppliers may be excluded from procurement if they have committed serious misconduct or have poor performance. A new public debarment list will be established for serious cases, and national security risks will be considered in supplier assessments, including potential links to modern slavery.
Contract Management: Contract management includes ensuring timely supplier payments and publishing performance assessments. Transparency is a core principle, with mandatory publication of procurement notices to improve oversight and public accountability.
Remedies: Suppliers can seek remedies if contracting authorities breach the regime, with a new automatic suspension process for claims made during a standstill period. The court will apply a more suitable test for lifting such suspensions.
Oversight: A Procurement Review Unit will be established to ensure compliance with the new framework, allowing for investigation of contracting authorities' procurement practices.
Ready to Secure Public Sector Contracts?
The Procurement Act 2023 presents a valuable opportunity for suppliers to expand into the public sector. By complying with the new standards, achieving key certifications, and demonstrating a commitment to quality, safety and ethical practices, you can gain a significant advantage in securing public contracts.
Contact us today to learn more about how we can assist you in becoming accredited and navigating the requirements of the Procurement Act 2023.
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