NEWS

What does the Procurement Act 2023 mean for you and your business? Following 18 months of drafting, reviews and approvals, the Procurement Act 2023 attained Royal Assent on 26th October 2023 This act will replace the current public procurement procedures in the UK and is expected to go live from October 2024 with a six month notice period in advance of the final date. The Act The Act will introduce a new procurement regime that will rationalise the public contracts, concession contracts, utilities contracts and defence and security public contracts into one Act Following the implementation, the Act will govern all procurement activities undertaken by public bodies and utilities in England, Wales and Northern Ireland. Key Objectives There are several objectives that government are hoping to achieve through the Act: delivering value for money maximising public benefit sharing information for the purpose of allowing suppliers and others to understand the authority’s procurement policies and decisions and acting, and being seen to act, with integrity Public authorities must take into account barriers to SMEs and whether they can reduced or removed and must also treat suppliers the same (unless a difference is justified, and reasonable steps are taken not to advantage/disadvantage any supplier). Previous principles required contracting authorities to treat economic operators equally and without discrimination, and to act in a transparent and proportionate manner, which were flown down from European Directives. Key Changes Replacement of MEAT with MAT The current procurement regulations place an emphasis on best value for money and requires contracts to be awarded to the Most Economically Advantageous Tender (MEAT). However, the new Act changes the key focus to the Most Advantageous Tender (MAT). The aim of this simple change in language is to enable contracting authorities to give more weight to award criteria such as social value, and to implement the recommendations in the National Procurement Policy Statement. However, all award criteria should continue to be proportionate and related to the subject matter of the contract. Online Publishing Portal There is a proposal to replace Find a Tender Services (FTS) and Contracts Finder with a single online portal/platform where all notices and documentation will be published. This will include all Contracting Authority documents as well as supplier registration and SQ information. Debarment List There will be the introduction of a centralised debarment list of suppliers which will be subject to an exclusion ground. The debarment list will be maintained and managed by central government. Contracting authorities will be required to notify central government within 30 days of excluding a supplier from a procurement process. Procurement procedures The Act provides contracting authorities with greater flexibility when designing their procurement procedures. Contracting authorities can choose to adopt the following procedures: single stage open procedure; or any other such procedure that a contracting authority considers appropriate for the purposes of awarding the contract (a “competitive flexible procedure"). This type of procedure may include multiple stages which allow deselection and shortlisting and the refinement of award criteria. Application to the whole life cycle of a contract The Act regulates the whole life cycle of a public contract from pre-procurement market engagement through to contract award and contract management as well as implementation. There is an emphasis on transparency, together with obligations to publish notices throughout the life cycle of contract, and a greater focus on contract management and monitoring suppliers’ performance. The new notice requirements are extensive and will likely increase the administrative and management burden on contracting authorities. In Summary There is still a lot of work to do before the new Act comes into force next year. The next step will be finalising the secondary legislation which sets out the detail in relation to areas such as notices and definitions. These are undergoing a consultation process and it is expected that draft statutory instruments will be laid before parliament in early 2024. Next Steps for You Are you an SME who wants to be ready for the Procurement Act 2023? Are you wanting to be prepared for the changes to the way you will need to tender? Are you needing your workforce upskilled in the expectations of the Procurement Act 2023? Whether you are a large company or an SME you need to ensure your business is ready for the changes associated with the Procurement Act 2023. To discuss how we can help you do this, contact us NOW!!