This legislation seeks to modernise the UK’s public procurement system, enhancing its efficiency and transparency.
The Procurement Act (the Act) aims to streamline procurement processes and benefit suppliers of all sizes.
According to Government guidance, the Act is specifically designed to support small businesses, start-ups, and social enterprises.
We covered the legislation just over a year ago here, but we thought it was worth giving an update as its implementation has been delayed, despite being given Royal assent some time ago.
The act will officially come into effect on 24 February 2025.
Here is a review of its key features:
- Simplified procedures and flexibility – The Act presents a more straightforward and adaptable procurement process, allowing for customised procedures that better address specific needs. This aims to lessen complexity and administrative burdens, especially for suppliers. It includes increased standardisation and streamlining of procurement processes, making it easier to bid, negotiate, and collaborate with the public sector.
- Enhanced transparency – The procurement lifecycle will see greater openness, including publishing contact details and performance. Storing core business information on a central digital platform allows for reuse in multiple bids, thereby boosting transparency and accountability.
- Enhanced oversight – The new Procurement Review Unit (PRU) will expand on the existing Public Procurement Review Service (PPRS), addressing concerns like late payments and specific procedures. Launching in February 2025 alongside the new procurement regime, the PRU will include the PPRS, a new procurement compliance service, and a debarment review service.
- Support for small businesses – The Act seeks to make public procurement accessible to small businesses and social enterprises, allowing them to compete for and secure more public contracts. Opportunities will be more visible, simplifying the search process and enabling free alerts for tender opportunities relevant to each small business.
- Central digital platform – A new central digital platform will simplify the registration process. Suppliers can store, manage, and update core business details swiftly, allowing them to easily register and find procurement opportunities.
- Debarment regime – A new system will exclude suppliers with poor compliance records or national security risks. A centralised list of these suppliers will help authorities identify and exclude them. Debarred suppliers can appeal the decision through a clear review process.
Initially, the Government aimed to establish a simpler, more adaptable commercial system after the UK left the European Union in 2020, to better suit the country’s needs while adhering to international obligations.
The Act introduces a significant change in procurement practices to ensure more effective use of public funds and to make the procurement process more accessible and accountable.
The Procurement Act will significantly impact the UK from early 2025. Government agencies must adopt new rules, and procurement officers’ roles will evolve, focusing more on strategic procurement, sustainability, digital tools, and training.
Suppliers and leaders will likely need to update procedures, train staff, and adopt new technologies to comply.
As we are just a month away from this legislation being introduced, stakeholders must be well-informed and proactive to ensure they are well-positioned to take advantage of the opportunities presented.
If you would like more information about the Procurement Act, or guidance on how it may affect you, please contact us today.