The Procurement Act 2023: How Suppliers Can Adapt to the Upcoming Changes

 The landscape of public procurement is undergoing a significant transformation with the introduction of the Procurement Act 2023, set to take effect on February 24, 2025. As a supplier looking to work with the public sector, here's what you need to know about these important changes.

📖 Curious about how these changes can work in your favor? Read the full report for Information and Guidance for Suppliers and The Procurement Act 2023: A short guide for suppliers to navigate the new procurement landscape with confidence.

Why These Changes Matter

The new Act is specifically designed to make it easier for businesses of all sizes, particularly SMEs, start-ups, and social enterprises, to participate in public sector procurement. Whether you're currently supplying to government departments, the NHS, local authorities, schools, or other public sector organizations – or planning to do so in the future – these changes will affect how you engage with public procurement.

 Key Improvements for Suppliers

1. Enhanced Flexibility

• A new 'competitive flexible' procedure that simplifies bidding processes

• More open commercial frameworks preventing long-term supplier lockout

• Reduced bureaucratic barriers for smaller businesses

• Mandatory 30-day payment terms across a broader range of contracts

• Consistent feedback requirement for final tenders

2. Digital Transformation

The existing Find a Tender service will be enhanced to include:

• Simple registration process

• Centralized storage of business information

• Easy information sharing with contracting authorities

• Free access to contract opportunities

• Customizable tender alerts

3. Stronger Oversight

A new Procurement Review Unit (PRU) will launch in February 2025, comprising:

• Public Procurement Review Service (PPRS)

• Procurement Compliance Service (PCS)

• Debarment Review Service (DRS)

 Preparing for the Changes

Immediate Actions

1. Familiarize yourself with the Act through available resources:

   • Review summary documents and videos on the Transforming Public Procurement landing page

   • Sign up for regular updates

   • Watch the Knowledge Drop video series, especially those focused on SMEs and VCSEs

   • Access public sector buyer training materials

2. Engage with your existing public sector clients about:

   • Their future procurement pipelines

   • How they plan to use the new approaches

   • Potential opportunities under the new system

Registration Requirements

• No immediate action is needed for registration

• New registration will be required after February 24, 2025

• Help desk support will be available

• Required information will include:

  • Companies House number (if applicable)

  • Business contact details

  • Last two years of accounts

  • Information about connected persons/businesses

  • Details of any relevant convictions/offenses

 Looking Ahead

The transition to the new procurement regime represents a significant opportunity for suppliers to expand their public sector business. The focus on transparency, accessibility, and fairness should create a more level playing field, particularly benefiting smaller organizations.

Stay informed about upcoming changes by:

• Monitoring official updates

• Attending Get Ready for go-live webinars

• Reviewing new guidance as it becomes available

• Participating in training opportunities

The new system aims to create a more collaborative and efficient procurement environment, benefiting both suppliers and public sector organizations. By preparing now, you can position your organization to take full advantage of these improvements when they come into effect in February 2025.

Remember: The central digital platform will remain free to use, and comprehensive guidance will be provided closer to the implementation date. Focus on understanding the changes and preparing your organization for the new opportunities ahead.

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