The Procurement Act 2023
On 24th February, after a delay of a few months, the Procurement Act 2023 finally went live. This new act is designed to modernise and streamline the way public bodies purchase goods and services, ensuring greater efficiency, transparency, and value for money.
What is the Procurement Act 2023?
The Procurement Act 2023 is a comprehensive overhaul of the UK's public procurement regulations. It consolidates over 350 different procurement regulations into a single, unified regime. The act aims to make the procurement process quicker, simpler, and more transparent, while also ensuring compliance with international obligations. By placing value for money, public benefit, and integrity at the heart of procurement, the act seeks to deliver better outcomes for communities and public services.
Key Elements:
The act introduces a more flexible procurement process, including a new 'competitive flexible' procedure that simplifies bidding and negotiation. This is designed to make it easier for businesses, especially small and medium-sized enterprises (SMEs) and social enterprises, to compete for public contracts.
A central digital platform, Find a Tender, has been updated (it has been around for many years already) to streamline the procurement process. This platform allows suppliers to register and store their details, making it easier to bid for multiple contracts.
The act emphasises transparency, requiring public bodies to provide consistent feedback to suppliers and ensuring that procurement decisions are well-documented. A new Procurement Review Unit (PRU) has been established to oversee public procurement practices and address concerns.
The act strengthens the approach to excluding suppliers involved in unethical practices, such as modern slavery. This ensures that only reputable suppliers are awarded public contracts.
What It Means for Bidders
For bidders, the Procurement Act 2023 (in theory) brings several benefits and changes:
The simplified bidding process and the central digital platform make it easier for businesses to find and bid for public contracts. This is particularly beneficial for SMEs and social enterprises, which often face barriers in the procurement process.
The act includes provisions for prompt payment throughout the supply chain, ensuring that suppliers receive payments within 30 days. This is a significant improvement for smaller businesses that rely on timely payments to maintain cash flow.
Public bodies are now required to provide detailed feedback on bids, helping suppliers understand their strengths and areas for improvement. This can lead to better-prepared bids in the future.
Conclusion
The Procurement Act 2023 represents a major step forward in the UK's public procurement system. By simplifying processes, enhancing transparency, and supporting SMEs and social enterprises, the act aims to create a more efficient and fair procurement landscape. For bidders, these changes mean greater opportunities and a more straightforward path to securing public contracts. As the new regime takes effect, it promises to deliver significant benefits for both public bodies and suppliers alike.
For official information about the Act, please see https://www.gov.uk/government/collections/procurement-act-2023-guidance-documents.