Overview
If your business supplies goods, works or services to organisations in the public and utility sectors, or hopes to do so, you need to know about the changes brought about by the Procurement Act 2023.
The new Procurement Act will benefit suppliers of all sizes, particularly start-ups, scale-ups and small businesses by:
- Creating a central digital platform for suppliers to register and store their details so that they can be used for multiple bids and see all opportunities in one place
- Introducing a simplified bidding processes that will make it easier to bid, negotiate and work in partnership with the public sector
- Introducing more flexible commercial frameworks, so prospective suppliers are not shut out for long periods of time
- Removing bureaucratic barriers and levelling the playing field for smaller businesses so they can compete for more contracts
- Ensuring prompt payment for more businesses in public sector supply chains
- Introducing a stronger exclusions framework will take tougher action on underperforming suppliers.
These changes aim to drive innovation, deliver better outcomes and embed transparency right through the commercial lifecycle, so everyone can access procurement data and see how money is spent.
The Procurement Act 2023 is due to come into force on 24 February 2025*. Contracts awarded under existing legislation will continue to operate under that legislation. Changes won’t happen overnight.
*On 12 September 2024, a Written Ministerial Statement was published in Parliament announcing that the new regime will go live on 24 February 2025, a short delay of four months from the previous go-live date of 28 October 2024.
Guidance and Support
Cabinet Office guidance around the Procurement Act is divided into four stages, representing the procurement lifecycle:
- Plan: Having clear and transparent commercial pipelines and a good understanding of the market to plan for the procurement process.
- Define: Achieving flexible, efficient procurement process that encourage broad participation and are open and accessible to all.
- Procure: Evaluating bidder compliance with exclusion grounds and selecting suitable suppliers for the contract.
- Manage: Working with suppliers and managing the contract to ensure successful achievement of the contractual outcomes.
This short YouTube animation for suppliers summarises the new Procurement Act, next steps and timelines, outlines the support which will be made available, and provides suggestions for initial steps to help prepare.
The Transforming Public Procurement landing page provides further information about the new regime and the L&D, guidance and support that Cabinet Office is providing: Access further materials and resources about the new regime, as we move towards go-live.