A guide to the Procurement Act 2023

The Procurement Act 2023 - set to come into The Procurement Act 2023 – set to come into effect on 24th February 2025 (not October 2024, as originally intended) – is the start of a shift in how procurement processes are managed across both the public and private sector. As you can tell from its name, the Act has experienced a significant delay for a number of reasons – of which we’ll go into more detail later.

The aim of the Act is to counteract longstanding concerns and inefficiencies within the procurement industry, which includes, but is certainly not limited to, lack of competitiveness, issues with accountability, and bureaucratic delays. The hope is that the Procurement Act will make the entire procurement process simpler, more transparent, and more accessible for smaller businesses.

The Act will see the introduction of more streamlined processes, greater transparency from start to finish, and better payment terms – making it far more efficient and better value for money than previously.

Key changes in the Procurement Act 2023

There are several changes that bidders need to be aware of in anticipation for the 24th February:

Simplified procedures

Open procedure: This will be used for basic tenders that have no pre-qualifying stages. These tenders will be open to all businesses.

Rather than having several procedures with different rules and procedures, there will now only be two:

• Open procedure: This will be used for basic tenders that have no pre-qualifying stages. These tenders will be open to all businesses.
• Competitive flexible procedure: This is a multi-stage process, giving buyers flexibility in shortlisting, negotiations and supplier interactions. This will be used for more complex procurements, such as those that require shortlisting.

Enhanced transparency

There are several ways that the Act will enhance transparency for suppliers, including:

• Mandatory feedback: All Contracting Authorities will now be obligated to provide timely feedback.
• New notice types: With the aim of ensuring compliance, the new notice types include: Contract Award Notice, Planned Procurement Notice, and Supply Chain Planning Notice, amongst others.
• Early supplier engagement: Contracting Authorities will now be expected to share details of upcoming procurements through pipeline notices – this is a single notice providing details of all relevant contracts that an authority intends to award during the reporting period. This ensures that potential suppliers are given plenty of time to prepare and submit a bid.
• New conflict of interest processes: Appropriate actions must now be taken to ensure procurements are awarded fairly and without bias.

Improved payment terms

The Act will enforce a 30-day payment rule on a broader range of public sector contracts, which will also apply to subcontractors that are tied to the delivery of Public Contracts. Suppliers should consider this when bidding for tenders, and make sure they have appropriate payment systems in place.

New platform for tenders

From now on, a new system, the Central Digital Platform [CDP], will be used for the publication of tenders. Suppliers will be able to store their details on this platform for standardised tender responses, and will have access to open tenders.

New procurement priorities

The UK government has identified key priorities that need to be considered during the procurement process. Suppliers should be aware of these, in order to submit the best possible tender response. These new priorities are:

• Most Advantageous Tenders [MAT]: When selecting a successful supplier, there will be an increased focus on factors such as social value and sustainability, rather than just price and quality. MAT will now replace MEAT (Most Economically Advantageous Tender) as there were concerns that there was too much emphasis on cost.
• National Procurement Policy Statement [NPPS]: This policy outlines the key goals for public procurement to be used by suppliers when creating their tender response.

Digital transformation

The Act mandates the use of technology to increase efficiency and accessibility throughout the procurement stages. These new key technological requirements include:

• Digital bidding: All bids must now be submitted electronically. This will allow for real-time tracking and automated compliance checks, a much smoother process all around.
• Contract management: All contracts will also now be managed through digital platforms, allowing for automated alerts and reporting tools to monitor contract performance.

How will businesses be affected?

It’s hoped that the Procurement Act will bring a whole host of benefits, particularly to suppliers who are bidding on contracts, with the aim of increasing transparency and efficiency for all parties involved in the process. Below are just a few ways businesses stand to benefit:

• Better visibility: The new CDP will make it far easier for businesses to find opportunities that they want to bid for, as they will all be in one easy-to-access place online!
• Debarment list: There will now be a Debarment List, which will contain names of companies that have a history of poor performance or unethical behaviour. This gives buyers that extra peace of mind when choosing a supplier.
• Stricter monitoring: The Procurement Act will introduce a greater emphasis on ethical, social and environmental standards, and all suppliers will be expected to align their commitments and goals with them going forward.
• ‘Tell us once’: This new system means that suppliers only need to register their details once onto the CDP, making it far easier and quicker to apply for multiple contracts.

The Procurement Act and the public sector

The procurement process in the public sector will change in a number of ways, following the Act:

• Governance: There will be increased audit requirements to improve accountability, and public sector organisations are now required to maintain detailed procurement records. Procurement officials will also be required to justify their decisions through detailed documentation and reporting in order to prevent bias.
• Public trust: By making the procurement process more accessible to the public and eliminating unnecessary barriers for SMEs, everyone will have a fair chance to compete for public contracts. The Act also details stronger protection for whistleblowers, by encouraging the reporting of unethical or fraudulent practices.

Potential challenges of the Procurement Act 2023

Although the Procurement Act will bring a number of benefits to the industry, there’s also a few potential challenges and criticisms of its implementation:

• Increased costs: Businesses will be expected to invest in new digital procurement systems, which could prove a challenge to start-ups and SMEs. The additional regulations regarding reporting and auditing may require additional hiring due to extra admin.
• Technology barriers: The Procurement Act brings an increased reliance on digital platforms, which could raise cybersecurity concerns and require additional training and investment – an extra burden for SMEs or those whose spending is limited. The increased focus on technology could also be a barrier to some suppliers, such as those in rural areas with limited access to the internet.
• Suitability and fairness: While one of the main aims of the Procurement Act is to encourage fairness and inclusivity, smaller businesses may still be inadvertently excluded if they are less equipped to handle the requirements involved. Larger firms will have an advantage here, meaning reduced competition for contracts.
• Strict compliance: Following the strict requirements may be unachievable or at least a challenge for smaller businesses.
• Lack of training: There has been a significant lack of training and guidance, with regards to the Procurement Act, which could impact its long-term success.

The Procurement Act and the bid writing industry

Before bidding for any contract following the implementation of the Procurement Act, you need to have an understanding of the main changes it brings, in order to increase your chances of success. So when the time comes to prepare and submit your bid, you need to consider…

• The stricter evaluation criteria
• The varying submission requirement, with regards to format
• The increased focus on value and innovation
• Tighter deadlines, particularly under the Competitive Flexible Procedure

What should suppliers do next?

To prepare for the upcoming changes, there are things you should be doing to ensure you are ready once the Procurement Act comes into force:

• Register on the new digital platform.
• Research and understand the new transparency rules.
• Check your supply chain compliance; do they meet all payment, ethical and social responsibility standards?
• Attend webinars or training to help you understand the new procurement process.

How can BWS help?

As experts in all things bid writing, we’ve been staying up to date with the progress of the Procurement Act, and are fully prepared for its imminent implementation. We are ready to guide you through the entire procurement process, ensuring your bid is fully aligned with the latest requirements and expectations.
BWS can help you to:

• Score high: As experts, we know how to write a winning bid. We work in tandem with your internal team to create a bid that meets all the scoring specifications.
• Full compliance: With the new emphasis on transparency, digital tech and strict regulations, we ensure your bid meets all requirements.
• Showing value: With more of an emphasis being placed on social value, sustainability and innovation, we will ensure your bid effectively highlights the value you will add.
• Managing deadlines: Our efficient bid management process ensures accurate and high-quality submissions are drafted and submitted even within the shortest timeframes.

Frequently Asked Questions:

What is the Procurement Act 2023?

The Procurement Act 2023 is a piece of legislation in the UK that aims to simplify and modernise the procedures and rules for public procurement, which is how public sector bodies in the country purchase goods, services and works.

When does the Procurement Act 2023 come into force?

24th February 2025. It was originally intended to come into force in October 2024.

Which public authorities are excluded from the Procurement Act 2023?

The following public authorities are excluded from the Procurement Act 2023: The Security Service (MI5), The Secret Intelligence Service (MI6), The Government Communications Headquarters (GCHQ), The Advanced Research and Invention Agency, and Devolved Scottish authorities.

Who does the Procurement Act 2023 apply to?

The Procurement Act will apply to all public sector bodies – except those listed above – and other public entities involved in procurement. It will also affect suppliers who bid for public contracts.

Why was the Procurement Act 2023 delayed?

The Procurement Act was delayed from October 2024 to February 2025, due to the complexity of the legislation, as well as the need for extensive collaboration with stakeholders.

effect on 24th February 2025 (not October 2024, as originally intended) - is the start of a shift in how procurement processes are managed across both the public and private sector. As you can tell from its name, the Act has experienced a significant delay for a number of reasons - of which we'll go into more detail later.

The aim of the Act is to counteract longstanding concerns and inefficiencies within the procurement industry, which includes, but is certainly not limited to, lack of competitiveness, issues with accountability, and bureaucratic delays. The hope is that the Procurement Act will make the entire procurement process simpler, more transparent, and more accessible for smaller businesses.

The Act will see the introduction of more streamlined processes, greater transparency from start to finish, and better payment terms - making it far more efficient and better value for money than previously.

Key changes in the Procurement Act 2023

There are several changes that bidders need to be aware of in anticipation for the 24th February:

Simplified procedures

Open procedure: This will be used for basic tenders that have no pre-qualifying stages. These tenders will be open to all businesses.

Rather than having several procedures with different rules and procedures, there will now only be two:

• Open procedure: This will be used for basic tenders that have no pre-qualifying stages. These tenders will be open to all businesses.
• Competitive flexible procedure: This is a multi-stage process, giving buyers flexibility in shortlisting, negotiations and supplier interactions. This will be used for more complex procurements, such as those that require shortlisting.

Enhanced transparency

There are several ways that the Act will enhance transparency for suppliers, including:

• Mandatory feedback: All Contracting Authorities will now be obligated to provide timely feedback.
• New notice types: With the aim of ensuring compliance, the new notice types include: Contract Award Notice, Planned Procurement Notice, and Supply Chain Planning Notice, amongst others.
• Early supplier engagement: Contracting Authorities will now be expected to share details of upcoming procurements through pipeline notices - this is a single notice providing details of all relevant contracts that an authority intends to award during the reporting period. This ensures that potential suppliers are given plenty of time to prepare and submit a bid.
• New conflict of interest processes: Appropriate actions must now be taken to ensure procurements are awarded fairly and without bias.

Improved payment terms

The Act will enforce a 30-day payment rule on a broader range of public sector contracts, which will also apply to subcontractors that are tied to the delivery of Public Contracts. Suppliers should consider this when bidding for tenders, and make sure they have appropriate payment systems in place.

New platform for tenders

From now on, a new system, the Central Digital Platform [CDP], will be used for the publication of tenders. Suppliers will be able to store their details on this platform for standardised tender responses, and will have access to open tenders.

New procurement priorities

The UK government has identified key priorities that need to be considered during the procurement process. Suppliers should be aware of these, in order to submit the best possible tender response. These new priorities are:

• Most Advantageous Tenders [MAT]: When selecting a successful supplier, there will be an increased focus on factors such as social value and sustainability, rather than just price and quality. MAT will now replace MEAT (Most Economically Advantageous Tender) as there were concerns that there was too much emphasis on cost.
• National Procurement Policy Statement [NPPS]: This policy outlines the key goals for public procurement to be used by suppliers when creating their tender response.

Digital transformation

The Act mandates the use of technology to increase efficiency and accessibility throughout the procurement stages. These new key technological requirements include:

• Digital bidding: All bids must now be submitted electronically. This will allow for real-time tracking and automated compliance checks, a much smoother process all around.
• Contract management: All contracts will also now be managed through digital platforms, allowing for automated alerts and reporting tools to monitor contract performance.

How will businesses be affected?

It's hoped that the Procurement Act will bring a whole host of benefits, particularly to suppliers who are bidding on contracts, with the aim of increasing transparency and efficiency for all parties involved in the process. Below are just a few ways businesses stand to benefit:

• Better visibility: The new CDP will make it far easier for businesses to find opportunities that they want to bid for, as they will all be in one easy-to-access place online!
• Debarment list: There will now be a Debarment List, which will contain names of companies that have a history of poor performance or unethical behaviour. This gives buyers that extra peace of mind when choosing a supplier.
• Stricter monitoring: The Procurement Act will introduce a greater emphasis on ethical, social and environmental standards, and all suppliers will be expected to align their commitments and goals with them going forward.
• ‘Tell us once’: This new system means that suppliers only need to register their details once onto the CDP, making it far easier and quicker to apply for multiple contracts.

The Procurement Act and the public sector

The procurement process in the public sector will change in a number of ways, following the Act:

• Governance: There will be increased audit requirements to improve accountability, and public sector organisations are now required to maintain detailed procurement records. Procurement officials will also be required to justify their decisions through detailed documentation and reporting in order to prevent bias.
• Public trust: By making the procurement process more accessible to the public and eliminating unnecessary barriers for SMEs, everyone will have a fair chance to compete for public contracts. The Act also details stronger protection for whistleblowers, by encouraging the reporting of unethical or fraudulent practices.

Potential challenges of the Procurement Act 2023

Although the Procurement Act will bring a number of benefits to the industry, there's also a few potential challenges and criticisms of its implementation:

• Increased costs: Businesses will be expected to invest in new digital procurement systems, which could prove a challenge to start-ups and SMEs. The additional regulations regarding reporting and auditing may require additional hiring due to extra admin.
• Technology barriers: The Procurement Act brings an increased reliance on digital platforms, which could raise cybersecurity concerns and require additional training and investment - an extra burden for SMEs or those whose spending is limited. The increased focus on technology could also be a barrier to some suppliers, such as those in rural areas with limited access to the internet.
• Suitability and fairness: While one of the main aims of the Procurement Act is to encourage fairness and inclusivity, smaller businesses may still be inadvertently excluded if they are less equipped to handle the requirements involved. Larger firms will have an advantage here, meaning reduced competition for contracts.
• Strict compliance: Following the strict requirements may be unachievable or at least a challenge for smaller businesses.
• Lack of training: There has been a significant lack of training and guidance, with regards to the Procurement Act, which could impact its long-term success.

The Procurement Act and the bid writing industry

Before bidding for any contract following the implementation of the Procurement Act, you need to have an understanding of the main changes it brings, in order to increase your chances of success. So when the time comes to prepare and submit your bid, you need to consider...

• The stricter evaluation criteria
• The varying submission requirement, with regards to format
• The increased focus on value and innovation
• Tighter deadlines, particularly under the Competitive Flexible Procedure

What should suppliers do next?

To prepare for the upcoming changes, there are things you should be doing to ensure you are ready once the Procurement Act comes into force:

• Register on the new digital platform.
• Research and understand the new transparency rules.
• Check your supply chain compliance; do they meet all payment, ethical and social responsibility standards?
• Attend webinars or training to help you understand the new procurement process.

How can BWS help?

As experts in all things bid writing, we’ve been staying up to date with the progress of the Procurement Act, and are fully prepared for its imminent implementation. We are ready to guide you through the entire procurement process, ensuring your bid is fully aligned with the latest requirements and expectations.
BWS can help you to:

• Score high: As experts, we know how to write a winning bid. We work in tandem with your internal team to create a bid that meets all the scoring specifications.
• Full compliance: With the new emphasis on transparency, digital tech and strict regulations, we ensure your bid meets all requirements.
• Showing value: With more of an emphasis being placed on social value, sustainability and innovation, we will ensure your bid effectively highlights the value you will add.
• Managing deadlines: Our efficient bid management process ensures accurate and high-quality submissions are drafted and submitted even within the shortest timeframes.

Frequently Asked Questions:

What is the Procurement Act 2023?

The Procurement Act 2023 is a piece of legislation in the UK that aims to simplify and modernise the procedures and rules for public procurement, which is how public sector bodies in the country purchase goods, services and works.

When does the Procurement Act 2023 come into force?

24th February 2025. It was originally intended to come into force in October 2024.

Which public authorities are excluded from the Procurement Act 2023?

The following public authorities are excluded from the Procurement Act 2023: The Security Service (MI5), The Secret Intelligence Service (MI6), The Government Communications Headquarters (GCHQ), The Advanced Research and Invention Agency, and Devolved Scottish authorities.

Who does the Procurement Act 2023 apply to?

The Procurement Act will apply to all public sector bodies - except those listed above - and other public entities involved in procurement. It will also affect suppliers who bid for public contracts.

Why was the Procurement Act 2023 delayed?

The Procurement Act was delayed from October 2024 to February 2025, due to the complexity of the legislation, as well as the need for extensive collaboration with stakeholders.