The Procurement Act 2023 now in effect

The Procurement Act 2023: Key Reforms and Implications

The Procurement Act 2023, coming into effect on 24th February 2025, introduces a major reform of public sector procurement in the UK. Designed to streamline processes, enhance transparency, and improve accessibility, the legislation particularly benefits small and medium-sized enterprises (SMEs), start-ups, and social enterprises.

Key Changes Under the Procurement Act 2023

• Introduction of a 'Competitive Flexible' Procedure
  A new procurement approach replaces rigid frameworks, simplifying bidding, negotiation, and collaboration with public sector buyers. This aims to reduce bureaucratic barriers and enable more suppliers to compete for contracts.

• Greater Access to Framework Agreements
  Previously, suppliers could face long-term exclusion from commercial frameworks, limiting their opportunities. The new Act opens up these frameworks, ensuring a fairer and more competitive environment.

• Support for SMEs and VCSEs
  The Act removes unnecessary obstacles, enabling small businesses and voluntary, community, and social enterprises (VCSEs) to compete more effectively. Additionally, 30-day payment terms are mandated across a broader range of public contracts, improving cash flow for smaller suppliers.

• Improved Feedback Mechanisms
  Public bodies must now provide structured feedback to suppliers, including detailed bid assessments for final tenders. This helps businesses identify areas for improvement and strengthen future bids.

• Launch of the ‘Find a Tender’ Service
  A new centralised digital platform simplifies the bidding process, allowing suppliers to register, store business details, and access procurement opportunities more efficiently.

• Creation of the Procurement Review Unit (PRU)
  Replacing the existing Public Procurement Review Service (PPRS), the PRU will oversee procurement processes, engage with suppliers, and address concerns such as late payments and procedural issues.

• Impact on the Construction Sector
  The Act encourages contractors to consider the ‘Most Advantageous Tender’ (MAT) rather than just the ‘Most Economically Advantageous Tender’ (MEAT). This broadens evaluation criteria beyond cost to include factors like project timelines and local engagement. Additionally, a debarment list will prevent underperforming subcontractors from securing future contracts, raising industry standards.

Preparing for the Procurement Act 2023

To align with the new framework, suppliers should:

✔ Understand the Act – Familiarise themselves with new procedures and compliance requirements.
✔ Register on ‘Find a Tender’ – Ensure visibility in public sector procurement opportunities.
✔ Engage with the PRU – Seek guidance and raise concerns where necessary.

The Procurement Act 2023 represents a significant transformation in public sector procurement, fostering greater inclusivity, transparency, and efficiency. By adapting to these reforms, businesses can position themselves for success in the evolving UK procurement landscape.

For more information on The Procurement Act 2023 now in effect talk to Nationwide Sureties