Procurement
The Procurement Act 2023 is UK legislation that overhauls public procurement rules to create a more flexible, transparent, and simpler system, with trade associations playing a role in educating their members on the changes and supporting broader cultural shifts needed for success.
The government is working with trade associations to provide guidance and training for both public sector procurers and private sector suppliers to help them understand and adapt to the new regime, which aims to benefit smaller businesses by reducing barriers to public contracts.
Key Aspects of the Procurement Act 2023
- Simplification and Flexibility: The Act creates a unified set of rules for public procurement, replacing over 350 regulations from different regimes with one “rule book”. It also introduces new, flexible procedures to meet national needs more effectively.
- Benefits for SMEs: The new regime aims to open public contracts to new entrants, including small and medium-sized businesses, by removing obstacles and focusing on barriers to entry. A central digital platform will make it easier for SMEs to find opportunities and register their details.
- Enhanced Transparency: A core theme of the Act is transparency, ensuring greater scrutiny of public spending.
- Supplier Engagement: The Act encourages a more collaborative approach between suppliers and public sector procurers to deliver better services and reduce costs.
- Centralised Information: A new central digital platform will serve as a single place for suppliers to register, store their details, and view all procurement opportunities.
Role of Trade Associations
- Guidance and Support: Trade associations are crucial partners for the government in facilitating the transition. They are involved in distributing guidance documents and making information available to their members.
- Promoting Cultural Change: The success of the Act depends on cultural and behavioural changes within the supplier community, and trade associations are expected to play a significant role in encouraging this shift.
- Representing Members: Associations represent the views of their specific supplier communities, ensuring their needs and challenges are considered in the new procurement landscape.
Implementation
- The Procurement Act 2023 received Royal Assent in the autumn of 2023 and is expected to go live in October 2024.
- Existing contracts commenced under the old rules will continue under those rules until completion.