Helping you to prepare for the Procurement Act
New tendering rules and process will be introduced in the UK on 24 Feb 2025 | Visit our Procurement Act Hub to learn about these changes, and what you can do to prepare.
The Procurement Act 2023 introduces a single set of regulations for all public procurement within the UK, significantly changing how the public sector purchases goods, works, and services.
Currently, public procurement is governed by four different pieces of legislation: Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concessions Contracts Regulations 2016, and Defence and Security Public Contracts Regulations 2011. These regulations were created pre-Brexit and designed to comply with EU standards rather than being tailored to the specific needs of the UK.
Set to take effect from 24 February 2025, the Procurement Act aims to:
As the implementation date approaches, it is essential businesses familiarise themselves with the Act and understand how it will impact their operations.
To ensure the Procurement Act delivers long lasting change, contracting authorities (government departments, local authorities, and other public bodies) must align their procurements to the objectives detailed below.
As a supplier, it is crucial you understand the significance of these objectives and incorporate them within your bid strategy. By addressing these themes within your submissions, you will help buyers accurately evaluate your bids, increasing your chances of success.
Procurements should be designed to efficiently source solutions which deliver the best mix of quality and value. This objective does not focus on choosing the cheapest option. Buyers will achieve value for money by giving adequate consideration to requirement conformity, whole life costing and social value when evaluating their option. In your bids, you should emphasise the value you will deliver to both the buyer and the communities they serve.
The societal, economic and environmental impact of procurements should be evaluated, and activities which positively benefit the public are to be prioritised. Buyers will be looking for solutions which will use sustainable practices and support local communities. In your bids, you should highlight how your business, directly or indirectly, can help buyers deliver more public benefits.
The public sector should adopt a ‘transparency by default’ approach to procurement. By making procurement information accessible, the public sector can make better procurement decisions, build trust with the public, and avoid corruption. You should expect access to more tendering information, helping you to better understand procurement requirements and decisions.
All procurement decisions should be made ethically and fairly. Contracting authorities have an obligation to ensure their procurement processes are free from corruption, misconduct, and fraud. This means all procurements will go through the appropriate channels and follow the processes outlined within the Procurement Act.
Contracting authorities must treat suppliers equally, unless there is a justified reason for different treatment. No unfair advantages or disadvantages will be given to suppliers, with equal access to information and opportunities for each procurement. You can rest assured that procurement decisions will be made without bias, and as long as you can deliver the requirements stated, you have a fair chance of success.
Contracting authorities should review procurements from the perspective of small and medium-sized enterprises (SMEs), and remove or reduce barriers to entry wherever possible. You can expect there to be an increase in tendering opportunities, either in the form of contracts with fewer requirements or through increased use of small lots within larger contracts.
The National Procurement Policy Statement (NPPS) is a strategic document which outlines the UK government’s procurement priorities, informing contracting authorities of how they should deliver projects and engage with suppliers. You can use the NPPS to your advantage by reviewing the procurement priorities, and ensuring your bids show buyers how you can help them fulfil these requirements. The current NPPS is under review, and we will provide a summary once it has been published.
The Procurement Act affects Contracting Authorities and, by extension, Suppliers who will be bidding into procurement exercises formed under the new rules.
The Procurement Act 2023 replaces the Public Contract Regulations 2015, and includes regulations for both Public Contracts (High-Value Tenders) and Below-Threshold Contracts (Low-Value Tenders).
The majority of regulations within the Procurement Act only apply to Public Contracts, which have values (£) above the UK Public Procurement Thresholds. Due to the larger cost, size and scope of these contracts, they receive a lot of scrutiny and are heavily regulated to ensure they are conducted ethically. The use of the Competitive Flexible Procedure and many of the new Notice Types are exclusive to Public Contracts.
Regulated Below-threshold Contracts are procurements which have values (£) below the UK Public Procurement Thresholds. Due to the smaller cost, size and scope of these contracts, they receive less scrutiny and have fewer regulations set against them, and are the focus of Part 6 of the Procurement Act. From a supplier’s perspective, you will find these tenders to be much simpler than those for Public Contracts, with fewer restrictions based on your financial capacity and technical ability. Below-threshold contracts are typically associated with the Open Procedure.
Unregulated Below-threshold Contracts are procurements which are not covered by the Procurement Act, and can be made with or without going through a tendering process. Contracts are not regulated if they are for central government authorities with values of £12,000 or less (including VAT), or wider public sector bodies with values of £30,000 or less (including VAT).
The current rules and processes you are familiar with will continue to be used right up to 24 February 2025. All tenders published before this date, and concluding after this date, will still be managed under Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concessions Contracts Regulations 2016, or Defence and Security Public Contracts Regulations 2011.
This is worth considering for Frameworks and Dynamic Purchasing Systems (DPS), which typically last for several years.
All notices published after this date will follow the new regulations under the Procurement Act.
While the Act will be introduced in 2025, it became a law in the year 2023.
The Procurement Bill was made into an Act of Parliament by King Charles III on 26 October 2023, after 17 months of review by both the House of Lords and House of Commons. Originally planned for implementation on 26 October 2024, the Act has been delayed until 24 February 2025.
To avoid confusion, we simply refer to it as the Procurement Act.
The Procurement Act will introduce new processes which put extra scrutiny on contracting authorities, while improving the overall tendering process for suppliers. You should familiarise yourself with these changes, understanding the effect they have on your business and how you can use them to your advantage.
Webinar: Preparing SMEs For The Tender Revolution – 26 November 2024, 1.00-1.45pm, FREE registration – Join our experts for a Procurement Act overview of the regulation changes, opportunities created, Central Digital Platform and new focus on accountability.
How the Procurement Act benefits suppliers – our guide to the positive changes introduced and opportunities created with the Procurement Act’s introduction.
Why you still need a tender alert service – our overview of the challenges the Procurement Act does not fix, and what you need to overcome them.
