Procurement Act 2023

Overview

Procurement Regulations are enshrined in the Public Contract Regulations 2015 (PCR2015) - the de-facto bible on all things relating to how Public Sector Procurement bodies are advised on presenting tenders to the market. It is a ‘tombe’ and is the source of data when considering how the rules affect suppliers considering submitting to a tender and unfortunately how they may wish to contest any contrary decision. If you want the official introductory text for the Regulations - then you’ve got to love the legalise speak:

“The Minister for the Cabinet Office is designated for the purposes of section 2(2) of the European Communities Act 1972(1) in relation to public procurement(2) and in relation to the combating of late payment in commercial transactions(3).

The Minister for the Cabinet Office makes these Regulations in exercise of the powers conferred by section 2(2) of, as read with paragraph 1A(4) of Schedule 2 to, that Act.

These Regulations make provision for a purpose mentioned in section 2(2) of that Act, and it appears to the Minister for the Cabinet Office that it is expedient for certain references to provisions of EU instruments to be construed as references to those provisions as amended from time to time.”

So what’s happened……….with a variety of changes since 2015, including pandemics etc, perhaps the most important impact to influence procurement strategy has been Brexit in 2018. The consequences regardless of political persuasion have resulted in a desire to build the UK as a commercial force to be reckoned with. The UK has been a powerhouse of innovation, regrettably, regulation and commercialism has diminished the value this has brought to the UK and Public Sector services. So as a ‘nation of shopkeepers’ and to reflect desires for UK economy to grow, lessons learned since the introduction of PCR2015 (nearly 10 years ago!) - changes have been afoot to review and support the UK growth strategy and simplify access to opportunities, especially for SME’s and those with innovative solutions.

Political hurdles abound - and there is still a necessity to provide services that benefit society through the procurement process and that’s where changes to the legislation have been updated - to come into operation in October 2024 - we are already seeing new procurements implementing the changes now! - E.g. changes to the Standstill Period - down from 10 days to 8 days!)

To review the changes please click here.

News

On 12 September 2024 a Written Ministerial Statement was published in Parliament announcing that the new regime will go live on 24 February 2025, a short delay of four months from the previous go-live date of 28 October 2024.

Existing legislation will apply until the new regime goes live, and will also continue to apply to procurements started under the old rules.

A new National Procurement Policy Statement (NPPS) will now be developed. It is important the new regime commences with a statutory NPPS aligned to the Government’s strategic priorities - creating a mission-led procurement regime which builds on the transformative powers within the Act, and which meets the challenge of applying the full potential of public procurement to deliver value for money, economic growth and social value.

Once completed, this new NPPS will replace the National Procurement Policy Statement which was laid in Parliament by the previous government on 13th May 2024 and which will now be withdrawn.