The Procurement Act 2023 and the supporting Procurement Regulations 2024 come into force on 24thFebruary 2025.
The Act, along with the Procurement Regulations 2024 and the National Procurement Policy Statement provide a new regime for awarding public contracts in England, Wales and Northern Ireland ending the obligation for the UK to comply with EU Procurement Directives. The Scottish Government has opted not to join the rest of the UK having transposed EU Directives into their own statute book. However, the Act does apply to contracting authorities in Scotland which are either cross-border bodies or exercise wholly reserved functions.
The reforms open up public procurement to new entrants such as small businesses and social enterprises so that they can compete for and win more public contracts. The Act also embeds transparency throughout the commercial lifecycle.
The primary purpose of the Procurement Act 2023 is to overhaul and improve the public procurement process in the UK. The Act aims to ensure that public funds are used efficiently and effectively, delivering the best possible value for taxpayers. Vitally to companies in the finishes and interiors sector, it emphasises the need for procurement processes to deliver broader social, environmental, and economic benefits to society as a whole.
Some key points it covers includes:
- Principles and Objectives: The Act emphasizes value for money (not necessarily lowest cost), public benefit, transparency, and integrity in procurement processes.
- Simplification and Unification: It consolidates over 350 different procurement regulations into a single regime, making the system quicker, simpler, and more transparent.
- Competitive Tendering: The Act outlines procedures for competitive tendering, including preliminary steps, award criteria, and conditions of participation.
- Direct Awards: It provides guidelines for direct awards in special cases, such as protecting life or switching to direct awards.
- Exclusions and Modifications: The Act includes provisions for excluding suppliers based on various criteria, such as national security threats or improper behaviour.
- Frameworks and Dynamic Markets: It introduces frameworks and dynamic markets to facilitate competitive awards and streamline procurement processes.
- Transparency and Accountability: The Act aims to deliver world-leading standards of transparency in public procurement, ensuring that every pound spent goes further for communities and public services.
The Construction Products Association have produced an excellent introduction to the Act (made available to FIS members by virtue of our membership of the CPA). This is available here
Recognising Culture and behaviour, as well as law, must change if we are to make the most of the opportunity the new system presents. An important aspect of the Act is that Procurers now have more discretion about how to design and evaluate public procurements. Using the flexibilities the new system presents wisely is likely to be one of the keys to success.
To this end the Construction Leadership Council have produce a publication that sets out best practice, points out the potential un-intended consequences of certain approaches, and addresses common misperceptions that may be driving behaviour. It also offers very practical and detailed advice on market engagement, evaluation methodology and ensuring that contractors deliver. This has all been designed with the new procurement system in mind, and complements the formal technical guidance produced by the Cabinet Office.
Launching the Guide, the claim of the joint chairs of the CLC Working Group, Steve Bratt of the Electrical Contractors Association and Isabel Coman Director Engineering and Asset Strategy. TfL claim
“If there is a gap between the aspirations for your project, and the outcome of your procurement evaluation, this document is likely to tell you why, and what you might be able to do to fix it.”
If you have any questions on the Procurement Act, don’t hesitate to contact FIS CEO, Iain McIlwee or call the FIS office on 0121 707 0077.