The Procurement Act 2023

The new Procurement Act will benefit suppliers of all sizes, particularly start-ups, scale-ups and small businesses. It will create a central digital platform for suppliers to register and store their details to be used for multiple bids and see all opportunities in one place. Simplified bidding processes will make it easier to bid, negotiate and work in partnership with the public sector.

Commercial frameworks will be more flexible, so prospective suppliers are kept from being shut out for long periods. The Act will remove bureaucratic barriers and level the playing field for smaller businesses so they can compete for more contracts.

 

There will be prompt payment for more businesses in public sector supply chains. And a more robust exclusions framework will take stricter action on underperforming suppliers. These changes will drive innovation, deliver better outcomes and embed transparency through the commercial lifecycle so everyone can access procurement data and see how money is spent.

 

The UK government has worked closely with businesses on the reforms, and industry leaders are very supportive. They're pleased the new system will be more straightforward and help suppliers work more collaboratively with procurers to reduce costs and deliver the services the public wants in the way they want them.

 

Small and medium-sized businesses welcome the changes, too. They know procurers will have to consider the barriers facing smaller businesses and that obstacles will be removed around providing accounts and insurance at the bidding stage.

 

The new regime is expected to go live in October 2024, with at least six months' advance notice. The existing rules will continue to apply to contracts already in progress, so the changes will take time.

 

While the Procurement Act doesn't bind suppliers directly, it will improve their business with the public and utility sectors. So, make sure you understand what it means for suppliers. It's not just about the rule book changing. There must be broader cultural and behavioural change to make the most significant difference.

A copy of the latest version of the legislation can be downloaded from the following link: The Procurement Act 2023.

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