How the Procurement Act Has Impacted Bidding

The Procurement Act was one of the most significant reforms to the UK’s public procurement system in decades. Since coming into force in February 2025, the legislation has reshaped how government contracts are advertised, evaluated and awarded.  One year into this new system, procurement data and industry feedback reveal several key trends: an increase in transparency, the evolution of procurement processes and changes to tender and bid writing strategies.  

For businesses pursuing public sector contracts, understanding these changes is critical to strategic bidding and improving success rates.

This blog will walk you through the industry changes since the Procurement Act came into play and how SMEs and microbusinesses should be responding.  

A Centralised Procurement Data System

One of the more significant developments under this Act is the move towards a centralised procurement data environment.  Previously, procurement information in the UK was fragmented across multiple platforms and formats. This made it more difficult for suppliers, analysts and policymakers to build a complete picture of procurement activity.  This new framework introduces a structured notice system which can record activity throughout the entire procurement lifecycle. This includes early planning, market engagement, tender publication, contract awards and performance reporting.  

For suppliers, this is a major improvement - instead of piecing together procurement information from multiple sources and monitoring various sites for information and updates, businesses now have a clearer view of who is buying what, how much contracts are worth and which suppliers are winning work.  

This new level of transparency is helping organisations to develop more informed strategies when pursuing government contracts.  

Data is More Useful

In addition to the creation of a CDP, the quality of the data accessible has significantly improved. The new notice framework displays several pieces of information that were not previously readily available. These include:

• Unique identifiers for both buyers and suppliers

• Data on competition levels within tenders

• Indicators showing whether opportunities are suitable for SMEs

• Information about procurement timelines and contract stages

This increased detail makes it easier to assess the competitive landscape of the procurement market and how efficiently contracting authorities are running procurement processes.  For businesses competing in public sector tenders, these insights are particularly valuable. They allow suppliers to better understand market trends and behaviour, identify patterns in procurement activity and target new opportunities more strategically.

Earlier Access to Market Updates

The new regime encourages contracting authorities to engage with the market before launching formal competitions. This includes publishing notices that outline procurement pipelines and inviting suppliers to participate in early consultations.

There are three types of notice that are particularly important here:

• Pipeline notices – used to highlight future procurement activity for effective planning.

• Preliminary Market Engagement notices – allow buyers to consult suppliers before tenders have been designed.

• Planned Procurement notices – provide advance notice of upcoming opportunities.

The number of preliminary market engagement notices has steadily increased over the past year. Hundreds are now published per month, suggesting that contracting authorities are making greater use of these early engagement mechanisms.

These notices make bid planning and business strategy easier and more effective. Businesses that monitor these notices can gain insight into buyer needs before tenders are released, positioning themselves more effectively for upcoming competitions.

Shifting the Public Procurement Landscape for SMEs

Public procurement represents a massive portion of government spending. In the UK alone, public sector procurement accounts for hundreds of billions of pounds each year, making it one of the largest markets open to suppliers.  

The Procurement Act was introduced as an attempt to modernise the system, aiming to simplify procedures, increase transparency and make public contracts more accessible to suppliers, particularly SMEs and microbusinesses.

For all bidders, this reform is not just regulatory, it directly affects how organisations prepare tender responses, pricing strategies and compliance documentation.  

What this means for SMEs

While this change will affect all bidders, SMEs and microbusinesses are particularly impacted. One of the core objectives of this new legislation is to open the procurement market to a wider range of suppliers, particularly SMEs.  

Historically, public contracts have been dominated by large corporations with established framework positions. The Procurement Act aims to reduce barriers that once prevented smaller suppliers from entering the market.  

Although SMEs now have a greater opportunity to compete for government contracts and public sector tenders, this also means greater competition.  

As more suppliers enter the market, bidders must ensure their submissions clearly demonstrate:

• Value for money

• Technical capability

• Social value contributions

• Delivery credibility

High-quality tender responses are now more important than ever before and should be a core priority for all companies, whether SMEs or large corporations, when bidding for any opportunity.

Procurement Processes Are Becoming More Flexible

Another major change is the increased flexibility given to contracting authorities when designing procurement policies. Under previous legislation, procurement routes were more rigid – the new system allows authorities to tailor procurement processes to better suit their requirements.  

This can lead to:

• More dialogue with suppliers

• More iterative procurement processes

• More tailored evaluation frameworks

While this flexibility can benefit buyers, it also means bidders must carefully read procurement documentation and fully understand the structure of each opportunity.

Now authorities have more control over these processes, it’s more important than ever for bidders to tailor their responses to the authority’s requirements and specifications. Generic or rushed tender responses are more likely to lose marks under this new system.

Quality vs Price

Another merging pattern is the emphasis on quality in tender evaluations. Where previously, some buyers may have favoured the cheapest supplier, quality criteria now plays a larger role in determining a winning bid.  

This reflects a more general shift towards evaluating suppliers based on overall value, rather than simply lowest cost.

Evaluation criteria often includes factors such as:

• Technical capability

• Delivery methodology  

• Service quality

• Social value commitments

For suppliers, this means the quality of tender responses is becoming increasingly important. Business that clearly demonstrate their expertise, delivery approach and added value are more likely to achieve higher evaluation scores.

It is more important than ever to get your bid right. Writing a winning bid is a complex and thorough process that, without the correct expertise, can result in losing work. Consider using a professional bid writing service to help you maximise winning chances and ensure you’re demonstrating your full potential as a supplier.  

Contract Performance Monitoring is Evolving

The new procurement framework has also introduced stronger expectations around contract performance monitoring. Contracting authorities are encouraged to include key performance indicators (KPIs) within contracts and to publish performance data as part of the procurement lifecycle.  

However, early data suggests that performance reporting is still developing – only a small proportion of contracts currently include structured KPI information, but this may be something we see more of in the coming years.  

Where KPIs are used, they often focus on areas such as social value, service delivery, customer satisfaction and quality standards.  

As the system matures, performance monitoring is expected to become more consistent and better integrated into procurement reporting.

Final Thoughts

The first year of the Procurement Act highlights several important shifts in the UK procurement landscape. Public procurement is becoming increasingly:

• Transparent

• Data-driven

• Engaged with suppliers earlier in the procurement process

For the first time, suppliers and buyers have access to a centralised view of procurement activity, making the market more transparent and easier to analyse.  

While improvements are still being made (particularly around data quality and performance monitoring), the foundations of a more open and competitive procurement environment are now in place.  

For business pursuing public sector tenders, the key to success lies in understanding these changes and adapting bidding strategies accordingly.

If your organisation wants to increase its success rate in government tenders, an expert bud writing service can help you to produce clear, compelling and compliant submissions. Get in touch today by emailing Michael.baron@bidwritingservice.com or fill out the form below

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