Due to go live on 24 February 2025, the Procurement Act is one of the biggest pieces of legislation in the UK post-Brexit. Its main purpose is to offer greater transparency in public procurement. Here, we look at how the Procurement Act hopes to achieve this, discuss the wider benefits, and even point out a few drawbacks.
First, the drawbacks…
At the OneAdvanced Government and Housing summits in late 2024, we held a series of roundtables with leaders and experts from a variety of public sector organisations. While many welcomed the new Act, others thought of it as burdensome and time consuming – an unwelcome interruption at a time of heavy workloads and stretched budgets.
Data difficulties
For some attendees, the Act would mean upgrading or replacing legacy tech infrastructure; in public sector bodies, data is often held in silos, making it difficult to extract and share. New systems would mean financial outlay, making life difficult for finance teams tasked with finding cost savings around each corner.
Shifting roles
The Procurement Act may even require new skill sets, or at least, a shift in how organisations carry out their procurement practices. Since the Act covers everything from pre-procurement through to contract termination, procurement leads will need to be given an expanded strategic role, and closer integration with contract managers and finance teams – a change requiring time, cost, and strategic input.
And the benefits?
While the Act may feel like a disruption – especially in the early stages – it is likely to produce a number of long-term benefits, while speeding up digital transformation for public sector teams and delivering more efficient work processes. We’ve listed the key benefits below.
Efficient ways of working
Many departments will need new digital tools to meet the demands of the Act. This can serve as a much-needed catalyst, speeding up work processes through increased automation and centralised data. Rather than simply being an adjustment, the Act represents an opportunity to adopt a more efficient way of working – a benchmark for other departments looking to upgrade their tech infrastructure.
At the same time, organisations will need to champion procurement leads, giving them much greater scope and authority. By working closely with finance and contract teams, the procurement function can help streamline workflows across departments. This approach not only enhances efficiency but also positions procurement as a leader in driving change.
Transparency and compliance
A focus of the Procurement Act is to increase transparency throughout the procurement lifecycle. With transparency notices required at each stage of the process, the Act is designed to improve accountability and provide better value for the public purse.
Notices will need to be published on an enhanced central digital platform, which the Crown Commercial Service (CCS) says will be user friendly and intuitive, speeding up processes with e-signatures and digital filtering. With all required information stored on a single, centralised platform, public buyers can maintain a robust record of compliance.
Autonomy
While the Procurement Act 2023 may appear more prescriptive, it actually gives contracting authorities greater scope to design their procurement practices, under the new Competitive Flexible Procedure. Under this procedure, contracting authorities have the option to create a pre-procurement stage, which can include supplier presentations, audits, site visits, and negotiations.
Sustainability
The Procurement Act is marked by a shift away from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). This means that contracting authorities can choose tenders based on their environmental and social credentials, rather that prioritising cost.
In preparation for the Act, contracting authorities should begin looking at supplier management software that aligns with the organisation’s net zero goals. Using Supplier Management, procurement teams can choose suppliers based on their sustainability history, with category-based scorecards for comparison, and regular, structured assessments to ensure ongoing compliance with ESG.
Locality
A major aim of the Act is to bring Small and Medium-sized Enterprises (SMEs) into the fold, with long-term pipeline notices designed to promote fair competition and allow small businesses time to scale and plan. This should bring more local business on board, lowering carbon footprint, boosting the local economy, and fostering closer ties between local authorities and the citizens they serve.
Trust
With local suppliers on board, and transparency notices published at every stage of procurement, the Act should garner higher levels of trust, as the public gain greater clarity on how their money is being spent. This focus on transparency should help eliminate cronyism and corruption, while delivering better value for money, improved good and services, and fairer competition.
Where can I find out more?
To find out more, visit our Procurement Act 2023 Hub, where you’ll discover a wealth of Procurement Act resources including whitepapers, reports, checklists and webinars – all designed to help you prepare for the upcoming changes.
