One month to go... The Procurement Act 2023 due for launch February 2025

The Procurement Act 2023 received Royal Assent in October 2023 and is set to go live on 24 February 2025 after a short delay from the originally anticipated October 2024 date. This delay was due to the new government revising the National Procurement Policy Statement (NPPS) to reflect their policy priorities for public procurement.

As we transition from the current procurement regulations to the Act, only new procurements launched after the go live date will follow the Act, with the government assuring that there will be no mixing of the two regimes.

The Act aims to improve and streamline public procurement and will apply to procurements issued by government departments, the NHS, local authorities, universities, schools, social housing organisations, police, and fire brigades, as well as utility companies.

Key Benefits of The Procurement Act 2023

There will be several advantages to the new procurement act and associated systems, with some of the key benefits below.

It simplifies the bidding processes to make it easier to bid, negotiate and work in partnership with the public sector.

It makes commercial frameworks more open, so prospective suppliers are not shut out for extended periods of time.

It offers 30-day payment terms on a broader range of public sector contracts.

It requires public bodies to provide consistent feedback for suppliers.

Greater transparency through a central digital platform

A central digital platform (CDP) will make it easier for suppliers to find and bid for contracts. It will:

Feature a simple registration approach

Store core business details that can be used for multiple bids

Enable organisations to manage and update core information quickly and share easily with contracting authorities

Public procurement opportunities will soon be more accessible, making it easier for suppliers to search for and set up alerts for tenders of interest at no cost. Onboarding and registration for contracting authorities will begin in late January 2025, with the timing for suppliers to be confirmed shortly, and the CDP is set to launch on 24 February 2025.

While contracting authorities will continue to use a range of procurement platforms, suppliers can draw all core business information from the CDP. However, tender-specific responses will still require interaction with different platforms.

Greater oversight

Under the new procurement act, public bodies must focus on delivering value for money, maximising public benefit, and maintaining integrity. They are required to treat all suppliers equally.

A new Procurement Review Unit (PRU) has been created to improve public sector procurement by ensuring compliance with the Procurement Act and protecting public procurement from high-risk suppliers.

The PRU will continue and enhance the existing Public Procurement Review Service (PPRS), where concerns regarding public procurement practices related to a specific procurement procedure and overdue payment issues can be addressed.

The PRU will be comprised of three services:

The existing PRU
A new Procurement Compliance Service (PCS)
A new Debarment Review Service (DRS)

Procurement frameworks

Frameworks are a familiar part of the current procurement landscape, providing a streamlined way for authorities to purchase goods, works, and services, especially for regular purchases that would otherwise require repetitive tender processes.

Frameworks allow authorities to procure from a list of pre-approved suppliers with pre-agreed terms and conditions and legal protections. Currently, once a framework is live, new suppliers can only be added when it expires and is re-tendered.

Typically, frameworks have a maximum term of four years – though those for defence and security and utilities can run for up to eight years. The new Act introduces the possibility of extending this term "if needed," but it's yet to be seen how this will work in practice.

One minor change in the Act is the "call off" process from a framework, with a preference for some competition among suppliers in the framework, and a direct award to an individual supplier only under specific conditions.

The Act offers both traditional "closed" frameworks and the exciting new "open" frameworks. Open frameworks are like a series of frameworks awarded in succession under similar terms, which can be reopened for new suppliers and lightly amended at set intervals.

Open frameworks give authorities a more flexible option for long-term arrangements that can be refreshed periodically. Suppliers should be on the lookout for this new framework type and make sure they understand all the details of the opportunities they're bidding for.

Dynamic markets

Dynamic markets are an exciting evolution of the DPSs that exist under the current public procurement regulations. While the current system has a lot of benefits, it is not commonly used.

Under the Act, DPSs are renamed dynamic markets but will operate in much the same way. One key change, however, is the removal of the restriction to commonly used off-the-shelf purchases.

By lifting this restriction, it's hoped that dynamic markets will appeal to a wider range of contracting authorities. Plus, the new dynamic markets will allow authorities to set conditions on membership – though these conditions must be fair and cannot be changed during the term.

Overall, these changes are designed to encourage more use of the streamlined and efficient system offered by a dynamic market.

The Procurement Act 2023 and workforce management

The Procurement Act 2023 signifies a transformative shift in workforce management for public bodies. By emphasising value for money, equality among suppliers, and heightened integrity, the Act encourages the adoption of more strategic and informed workforce planning.

Public bodies will need to ensure that their procurement strategies align with these principles, leading to the selection of suppliers that not only meet the immediate requirements but also contribute to long-term organizational goals.

The introduction of dynamic markets and open frameworks means that workforce management must now consider the potential for continuous improvement and adaptation, allowing for a more responsive and resilient approach to meeting the evolving needs of public service delivery.

For more information on proactive strategies aligned with the new public procurement regulations, get in touch with the team at Comensura today.