The Procurement Act 2023 is set to revolutionise the UK’s public procurement framework, introducing a more transparent, efficient, and competitive process for suppliers and public sector buyers. Designed to simplify procurement, improve accessibility for smaller businesses, and enhance accountability, the Act will have a significant impact on organisations engaging in public contracts.
This article outlines key aspects of the Procurement Act and how organisations can prepare for its implementation.
Who Does the Procurement Act Apply To?
The Procurement Act applies to businesses supplying works, goods, or services to public sector bodies, including local authorities, central government departments, the NHS, educational institutions, housing associations, emergency services, and utility providers.
Key Measures in the Procurement Act
1. Transparency & Digital Procurement
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Find a Tender vs. Central Digital Platform: The Find a Tender platform currently hosts procurement transparency notices, but a more comprehensive Central Digital Platform (CDP) is under development. The CDP aims to centralise procurement opportunities, contract awards, and performance reporting across the public sector. However, as of now, there is no confirmed launch date, and full implementation is expected to be a long-term objective.
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Contract Reporting Obligations: Public sector buyers must publish contract details, including supplier selections, contract terms, and ongoing performance evaluations.
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KPI Integration: Contracts valued above £5 million must include clearly defined Key Performance Indicators (KPIs) to measure supplier efficiency and contractual compliance.
2. Competitive & Flexible Procurement Models
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Regulatory Simplification: The Act consolidates multiple procurement laws into a streamlined framework, reducing bureaucratic complexity and increasing accessibility, particularly for SMEs.
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Adaptive Procurement Mechanisms: Contracting authorities gain greater flexibility in designing procurement processes that align with project scope and complexity.
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Promotion of Open Competition: The Act actively discourages restrictive frameworks that could exclude suppliers from competing in public tenders for extended periods, ensuring broader participation.
3. Fairness & Supply Chain Protections
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Prompt Payment Standards: All contracting authorities must enforce 30-day payment terms across the supply chain, protecting smaller suppliers from liquidity challenges.
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Transparent Feedback Mechanisms: Standardised bid feedback must be provided, helping suppliers refine future tender applications and improve competitiveness.
4. Performance & Risk Mitigation Measures
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Debarment Review Service (DRS): A newly established DRS will assess high-risk suppliers, excluding those with histories of unethical practices, non-compliance, or fraud.
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Performance-Driven Exclusions: Suppliers failing to meet contractual standards may be restricted from future public procurement engagements, ensuring accountability in supplier performance.
When Does the Procurement Act Take Effect?
The Act took effect on 24th February 2025. A new Procurement Review Unit (PRU) will oversee compliance, with transitional arrangements in place for ongoing contracts. Certain elements, such as KPI-based assessments, will be phased in gradually.
For additional guidance, a summary of the Procurement Act 2023 is available on gov.uk.
Next Steps
Is your organisation prepared for the new procurement regulations? Quantum 360 is actively assisting public sector organisations with the implementation of the Procurement Act, offering ongoing guidance and support to ensure smooth compliance and operational efficiency.
If you have any questions or require assistance in navigating the new framework, contact Quantum 360 today to discuss how we can help your organisation stay ahead of these regulatory changes.
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