The new Procurement Act 2023 will come into effect on 24 February 2025. Please see the latest National Procurement Policy Statement for further details
On 24 February 2025 the Government is implementing the new PA23 to replace the PCR. This means there will be a transitional period for all contracts awarded and tendered under the PCR. This transitional period applies to all tenders commenced before 24 February 2025 and will last for the life of the contract / up to 4 years.
For suppliers the PA brings new features which should make it easier to do business with ALL public sector contracting authorities:
A central digital platform for suppliers to register and store their details so that they can be used for multiple bids and see all opportunities in one place (Note you will still need to register on Buyers portals to access and submit tenders).
Simplified bidding processes to make it easier to bid, negotiate and work in partnership with the public sector - including a new ‘competitive flexible’ procedure.
Commercial frameworks will be more flexible, so prospective suppliers are not shut out for long periods of time.
A new duty on contracting authorities to have regard to the particular 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.
Strengthened provisions for prompt payment throughout the supply chain - enabling SMEs to benefit from 30 day payment terms on a broader range of public sector contracts.
A stronger exclusions framework will take tougher action on underperforming suppliers.
It is intended that these changes will drive innovation, deliver better outcomes and embed transparency right through the commercial lifecycle, so everyone can access procurement data and see how public money is spent. Links to additional reading to support your understanding of the new legislation is detailed below
Dedicated information for suppliers, particularly around the Procurement Review Unit and Central Digital Platform will be issued by the Cabinet Office in early 2025.
The Government Commercial Function has been working with leading business groups and trade associations to make guidance and support available for the suppliers. There is already a range of information and resources about the new regime on the Transforming Public Procurement landing page including a series of short ‘Knowledge Drop’ instruction videos with tailored versions designed specifically for suppliers, including SME and VCSE suppliers.
In the lead up to go-live on 24 February 2025 there are actions you can start to take to prepare if your contracts are subject to the PCR/PA:
Familiarise yourself with the Act - check out the summary documents and short videos on the Transforming Public Procurement landing page.
Sign up for regular Cabinet Office updates here.
Attend more detailed training on the Procurement Act which is specifically designed for suppliers. We recommend you consider attending the following training What Suppliers need to know about the Procurement Act – Level 1 Training – In2 the bargain
Start to prepare the information that will be needed for you, as a supplier, to register on the new central digital platform. The Cabinet Office has said they will be issuing specific guidance for suppliers in early 2025 but in the meantime we suggest you look that the details that suppliers need to register on the platform set out in regulations 9 to 12 in The Procurement Regulations 2024
Watch the dedicated official Knowledge Drops available via the link above, with guidance, procurement reform events and supplier communications.
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