New Procurement Act 2023

22 days ago

The Procurement Act 2023, a significant update to UK procurement law following the UK’s exit from the EU, will come into effect on 24 February 2025 (delayed from the original commencement date of 28 October 2024).

The Procurement Act 2023 introduces significant updates and reforms to procurement policies and practices. These changes aim to enhance transparency, efficiency, and value for money across all procurement activities.

This new legislation will replace the Public Contracts Regulations 2015 and Concessions Contracts Regulations 2016. Additional Secondary Legislation, called the Procurement (Wales) Regulations 2024, has also been introduced, emphasising devolved priorities and aligning with the overarching framework.

Key highlights of the new Procurement Act 2023 include:

  1. Enhanced Transparency Measures
    • Increased reporting and disclosure requirements. Examples include:

Ø  Publishing details of future potential procurements where the estimated Contract value is above £2m (the first procurement pipeline notice will need to be published by 26 May 2025).

Ø  Publishing ‘Transparency Notices’ before directly awarding a contract to a supplier (some exemptions apply), and an 8 working-day standstill period prior to entering into a contract will be required. This also applies to all direct awards (including exceptions requested under clause 12 in the Contract Procedure Rules) over £30k inclusive of VAT.

Ø  The Corporate Procurement Unit (CPU) will co-ordinate these but will be reliant on the supply of prompt and correct information from officers.

  1. Streamlined Procurement Processes
    • Simplified procedures for lower-value contracts to reduce administrative burden on suppliers.
    • Clearer guidelines for supplier selection and bid evaluation.
  2. Sustainability and Social Value Focus
    • Mandatory consideration of environmental and social impacts in procurement decisions.
    • Encouragement for participation from small and medium enterprises (SMEs).
  3. Strengthened Oversight and Accountability
    • Introduction of stricter compliance and audit mechanisms.
    • New penalties for non-compliance to reinforce adherence to procurement standards.

5.      Improved Contract Management

    • Greater emphasis on active contract management to ensure delivery of expected outcomes.
    • Clear provisions for contract modifications, dispute resolution, and performance monitoring.

Supporting the transition and implications for Procurement activities:

All new tenders to be advertised from 24 February 2025 onwards must align with the requirements of the new Procurement Act 2023*. Preparations are underway to ensure our compliance. This includes:

  • Updating internal policies and documentation to reflect the new rules. New Contract Procedure Rules are currently being prepared.
  • On-going training is available to officers on the changes.
  • Reviewing ongoing contracts and planned procurements to ensure alignment with new requirements.

*All Contracts/Frameworks entered into prior to 24 February 2025 will remain subject to the current regulations (Public Contracts Regulations 2015) and will not be affected by the changes introduced under the New Procurement Act 2023.

Further guidance:
Knowledge Drops (videos):
The Official Transforming Public Procurement Knowledge Drops - GOV.UK (www.gov.uk)

Welsh Government Guidance:
Procurement Act 2023: guidance documents | GOV.WALES

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