Procurement Act 2024 – What will it mean

The UK’s public procurement landscape is set for a significant transformation with the introduction of the Public Procurement Act 2023 on 28 October 2024. This new legislation brings change for public procurement regulations, promising to simplify and streamline the tendering process, enhance transparency, and encourage greater competition. Organisations engaging with public sector tenders need to understand the implications of these changes and adapt their strategies to maximise their chances of success.

Why are the changes happening?

Leaving the EU has provided the UK Government with the opportunity to reform its public procurement rules, which were previously bound by EU directives and legislation.

Alongside beliefs that the previous procurement processes were too rigid and exclusionary, the new act is aimed to match UK needs and provide a simplified tendering process.

Aims of the Procurement Act 2024

The Government has set out the aims for the changes, including:

• Straightforward Processes -The introduction of a simplified and more flexible commercial system to suit people’s needs while remaining compliant with international obligations.
• Accessibility – Commitment to opening up public procurement to new entrants such as small businesses (SMEs) and social enterprises, meaning they can compete for and win more public contracts.
• Clarity – Improving and embedding transparency throughout the commercial lifecycle so that the spending of taxpayers’ money is clear and can be properly scrutinised.

Key changes 

• Most Advantageous Tender (MAT): The success of tenders will be dependent on more than just price. Instead, Contracting Authorities will consider the wider advantages of your organisation, including social value and additional value, beyond a competitive price.
• Earlier Engagement: Under the Procurement Act, Contracting Authorities will be required to publish Pipeline Notices about upcoming tenders and opportunities available over the next 18-months.
• Central Digital Platform: A centralised digital platform will be created to improve the accessibility of the tendering process. Organisations will register for tendering through the system, and it will keep track of tender data for submissions. Contracting Authorities will also publish new tendering opportunities online via the platform. 
• Flexible Procedures: For smaller tenders, the Open Procedure will remain the same. Whilst, for larger tenders, a new Competitive Flexible Procedure will be introduced which uses a multi-stage process (e.g., Site Stage visit, presentation).
• Frameworks & Dynamic Markets: The introduction of Open Frameworks that are opened at least every 3-years to ensure companies are not “locked out” from joining. Dynamic Markets are similar to Dynamic Purchasing Systems and can be applied to at any time, with no limit on the number of companies who can join, whilst the new changes ensure the process is quick and simple. 
• Exclusion Frameworks: Contracting Authorities will commence assessments of conflict of interests to ensure a fair tendering process for all organisations applying. A stronger exclusion framework will take harsher action on underperforming suppliers and organisations not meeting the Contracting Authorities’ standards.

Positive impacts for organisations

• Centralised Systems – An improvement for transparency and access to information, with all public procurement opportunities in one place. For SMEs, this will support the identification of potential tender opportunities and quicken the tendering submission process.
• Further Opportunities – Improved communication about procurement plans, engagement events and tender opportunities results in more available opportunities to bid for.
• Frameworks – These changes will be more flexible, so prospective suppliers are not shut out for long periods of time.
• Removing Barriers – Increased pressure on contracting authorities to regard barriers facing SMEs and VCSEs, and to consider what can be done to overcome them throughout the procurement lifecycle, helping level the playing field for smaller businesses so they can compete for more contracts.

How to prepare for the changes

The Government has provided guidance and checklists for supplier bidding under the new act to prepare in advance for the upcoming changes. Key preparations include: 

• Processes & Policies – Review current processes and procedures and ensure they are robust in areas such as pre-market engagement and supplier evaluation/assessment, with governance documents that record key decisions.
• Systems– Make sure your organisation meets the new data requirements, including data in pre-existing systems.
• Training – External resources about the changes are available via the Government’s website, including eLearning modules for understanding key changes. Knowledge drop videos have also been created to help you stay current with the incoming changes.
• Transition – To ensure a smooth transition under the new Procurement Act, check contract registers and details are up to date for easier bid applications. Make sure to communicate with your supply chains and explain the incoming changes and how they affect your business. 

Still feeling a little lost?

Understanding and preparing for the upcoming procurement changes is essential for succeeding under the Procurement Act 2024. With new opportunities available, and increased accessibility for a wider range of organisations, there is the space to grow and develop your company.

If you find yourself in need of assistance when preparing a bid, do not hesitate to reach out to Your Tender Team. With our professional guidance and experience, you can increase your chances of submitting a winning bid. Contact Your Tender Team today HERE for a free quote and take the first step toward securing contracts.