The Suppliers’ Guide To The Procurement Act 2023

The Procurement Act 2023 is set to revolutionise how public sector contracts are awarded in the UK. With new regulations, processes, and opportunities on the horizon, it’s crucial for all suppliers — whether large corporations, small businesses, or individual contractors — to understand the landscape and adapt their approach.

On 12 September 2024, the Cabinet Office announced that the Procurement Act 2023 will now take effect on 24 February 2025. This marks a four-month delay from the original implementation date of 28 October 2024, allowing additional time for the development of a new National Procurement Policy Statement (NPPS).

This guide on the Procurement Act 2023 offers key information for securing lucrative public sector contracts. We’ll explore the changes introduced by the Act and provide practical strategies for competing effectively in the new procurement environment.

No matter your experience level or industry, this guide will equip you with the knowledge and tools to confidently approach public procurement, maximise your chances of success, and ultimately grow your business through new opportunities in the public sector.

What Is The Procurement Act 2023?

The Procurement Act 2023 is a groundbreaking piece of legislation designed to overhaul the way public procurement is conducted in the UK. It replaces outdated rules and regulations with a modernised framework aimed at making public procurement more efficient, transparent and accessible to a wider range of suppliers.

Key Changes From Previous Legislation

The Procurement Act 2023 introduces several key changes that suppliers need to be aware of:

• Simplified Procurement Processes: The Act streamlines procurement procedures, making it easier for both buyers and suppliers to engage in public tenders.
• Increased Transparency: Greater transparency is mandated throughout the procurement lifecycle, from early market engagement to contract award and management. This benefits suppliers by providing clearer insights into upcoming opportunities and the evaluation criteria.
• Focus On Social Value: The Act emphasises the importance of social value in procurement decisions. This means that public sector buyers will consider factors like environmental impact, community benefits and ethical practices when evaluating bids, alongside price and quality.
• Stronger Supplier Protections: The Act strengthens protections for suppliers, including measures to ensure prompt payment and fair treatment throughout the procurement process.

Core Principles Of The Procurement Act 2023

The Procurement Act 2023 is underpinned by three core principles:

• Transparency: Public procurement processes must be open and transparent, allowing all suppliers to have a fair chance to compete.
• Fair Treatment: All suppliers should be treated equally and fairly throughout the procurement process, regardless of their size or experience.
• Value For Money: Public procurement decisions should prioritise achieving the best overall value for money, considering not only price but also quality, social value and other relevant factors.

Benefits For Suppliers

The Procurement Act 2023 offers numerous benefits to suppliers:

• More Opportunities: The simplified processes and increased transparency open doors for a wider range of suppliers to participate in public tenders.
• Level Playing Field: The emphasis on fair treatment ensures that all suppliers have an equal chance to win contracts, regardless of their size.
• Clearer Rules: The Act provides greater clarity on procurement rules and procedures, reducing uncertainty and making it easier for suppliers to prepare competitive bids.
• Enhanced Protection: Stronger supplier protections provide greater security and reassurance when engaging in public sector contracts.

Benefits For Public Sector Organisations

The Procurement Act 2023 also benefits public sector organisations:

• Better Value For Money: The Act’s focus on value for money ensures that public funds are spent wisely and deliver optimal outcomes.
• Wider Choice Of Suppliers: The Act attracts a broader range of suppliers, leading to increased competition and potentially better solutions.
• Simplified Processes: Streamlined procurement processes save time and resources for both buyers and suppliers.
• Greater Public Trust: The emphasis on transparency and fair treatment fosters greater public trust in the procurement system.

The Procurement Act 2023 represents a significant shift in the way public procurement is carried out in the UK. By understanding its key provisions and principles, suppliers can position themselves to take advantage of the new opportunities and benefits it offers.

Related Reading: Five things you need to know about the Procurement Bill

Key Provisions For Suppliers Under The Procurement Act 2023

The Procurement Act 2023 introduces a range of provisions designed to make public procurement more efficient, transparent and equitable for suppliers. Understanding these key provisions is essential for successfully navigating the new procurement landscape.

New Tendering Processes

The Act introduces several changes to the tendering process, including:

• Open Procedure: This is the most common procedure, where any supplier can submit a tender.
• Restricted Procedure: In this procedure, only pre-selected suppliers can submit a tender.
• Competitive Procedure With Negotiation: This procedure allows for negotiation between the buyer and shortlisted suppliers.
• Competitive Dialogue: This procedure is used for complex procurements where the buyer needs to discuss potential solutions with suppliers.
• Innovation Partnership: This procedure allows for collaboration between the buyer and supplier to develop innovative solutions.

Each procedure has specific requirements and timelines, so it’s important to understand which one is being used for the procurement you are interested in.

How To Find And Respond To Public Tenders

Public sector tenders are advertised on various platforms, including:

• Find A Tender Service (FTS): The official UK government portal for public procurement opportunities.
• Contracts Finder: Another government portal specifically for lower-value contracts.
• Other Platforms: Some contracting authorities may advertise on their own websites or through industry-specific platforms.

When responding to a tender, it’s crucial to carefully read all the documentation and follow the instructions provided. Your tender should demonstrate how you meet the buyer’s requirements and offer the best value for money.

Contract Management

Once a contract is awarded, it’s important to manage it effectively to ensure successful delivery and avoid disputes. Key aspects of contract management include:

• Understanding The Contract Terms: Carefully review the contract to understand your obligations and the buyer’s expectations.
• Communication: Maintain open communication with the buyer throughout the contract period.
• Performance Management: Track your performance against the contract requirements and address any issues promptly.
• Dispute Resolution: If a dispute arises, try to resolve it amicably. If necessary, the contract may include provisions for formal dispute resolution.

By understanding and proactively managing these aspects, you can build positive relationships with public sector buyers and increase your chances of winning future contracts.

Related Reading: How Accreditations Can Speed Up Your Procurement Process

Complying With The Procurement Act 2023

The Procurement Act 2023, combined with new guidance like PPN 03/24, introduces significant changes to how suppliers engage in public procurement. Ensure you meet all the requirements and position your business for success.

The New Standard: Common Assessment Standard

As of June 2024, public sector contracting authorities are mandated to assess their supply chains using the Common Assessment Standard. This new standard replaces the previous PAS 91 and streamlines the pre-qualification process for both buyers and suppliers.

• Mandatory Requirement: By June 2024, Common Assessment Standard certification will be a de facto requirement for bidding on public sector contracts.
• Streamlined Process: Common Assessment Standard simplifies the pre-qualification process, saving you time and resources.
• Enhanced Credibility: Demonstrating compliance with the Common Assessment Standard signals your commitment to quality, safety and ethical practices.
• Increased Opportunities: Some contracts may be exclusively reserved for Common Assessment Standard-certified suppliers.

Achieving Common Assessment Standard Certification With CHAS

Veriforce CHAS is a recognised Assessment Body for the Common Assessment Standard and offers a straightforward path to certification. If you’re a CHAS Elite member, you already meet the Common Assessment Standard requirements. If not, we can guide you through the assessment process.

Essential Documentation

Public sector tenders often require extensive documentation. Be prepared to provide:

• Pre-Qualification Questionnaires (PQQs): These assess your suitability for the contract.
• Technical Specifications: Detail the specific requirements you need to meet.
• Method Statements: Describe how you will deliver the contract and manage risks.
• Risk Assessments: Identify potential hazards and outline mitigation measures.
• Insurance Certificates: Prove you have appropriate insurance coverage.
• Financial Information: Submit recent accounts, tax returns and bank references as needed.

Legal Considerations

Public procurement is subject to several legal frameworks, including:

• Public Contracts Regulations 2015: These regulations govern the awarding of public contracts.
• Equality Act 2010: Ensure your practices adhere to anti-discrimination laws.
• Data Protection Act 2018: Comply with regulations on handling personal data.

It’s crucial to understand these legal requirements and ensure your tender and contract adhere to them.

Even if a tender doesn’t specifically require the Common Assessment Standard, CHAS membership can be a valuable asset. It demonstrates a commitment to health and safety, which many public sector buyers prioritise.

Free eBook: Step-By-Step Guide To CHAS Compliance

Strategies For Winning Public Sector Contracts Under The Procurement Act 2023

Securing public sector contracts requires a strategic approach that goes beyond simply meeting the basic requirements of the Procurement Act 2023. Here are some proven strategies to help you stand out from the competition and increase your chances of winning lucrative contracts.

1. Building Relationships With Public Sector Organisations

Networking and relationship-building are key to success in public procurement. Here’s how you can connect with potential buyers:

• Attend Industry Events: Participate in conferences, trade shows and networking events where public sector buyers are present.
• Engage In Online Forums: Join online communities and discussion groups focused on public procurement to connect with buyers and stay informed about upcoming opportunities.
• Directly Contact Procurement Teams: Reach out to procurement teams at public sector organisations you’re interested in working with to introduce yourself and express your interest in future tenders.
• Participate In Meet-The-Buyer Events: These events provide valuable opportunities to meet with buyers face-to-face and learn about their specific needs and priorities.

2. Joining Supplier Frameworks

Supplier frameworks are agreements between public sector organisations and pre-approved suppliers. Joining a relevant framework can streamline the procurement process and open doors to multiple contract opportunities.

3. Marketing Your Business

Effectively marketing your business is crucial to attracting the attention of public sector buyers. Here are some tactics to consider:

• Develop A Compelling Value Proposition: Clearly articulate the unique benefits you bring to public sector contracts, emphasising your expertise, experience and commitment to delivering value for money.
• Create A Strong Online Presence: Ensure your website is up-to-date and informative and highlights your experience in relevant sectors. Consider creating case studies showcasing successful projects you’ve completed for other public sector clients.
• Utilise Social Media: Leverage social media platforms to share your expertise, engage with potential buyers and stay informed about industry trends.
• Attend Industry Events: Participate in relevant industry events to network with buyers and showcase your capabilities.

4. Using CHAS Accreditation

CHAS accreditation can be a powerful asset when bidding for public sector contracts. Here’s how you can use it to your advantage:

• Highlight It In Your Bids: Clearly state your CHAS accreditation in your tender documents and emphasise the benefits it brings, such as demonstrating your commitment to health and safety.
• Use The CHAS Logo: Display the CHAS logo on your website and marketing materials to signal your compliance with recognised industry standards.
• Network With CHAS Members: Connect with other CHAS-accredited suppliers to share best practices and potentially collaborate on joint bids.

5. Crafting Competitive Bids

Winning public sector contracts requires writing compelling bids that demonstrate your ability to meet the buyer’s needs and deliver value for money. Here are some tips for writing winning bids:

• Read The Tender Documents Carefully: Thoroughly understand the buyer’s requirements, evaluation criteria and timelines.
• Tailor Your Bid: Customise your response to address the specific needs and priorities outlined in the tender documents.
• Highlight Your Strengths: Clearly articulate your unique selling points and how you can deliver value for money.
• Provide Evidence: Back up your claims with concrete evidence, such as case studies, testimonials and references.
• Seek Feedback: If you’re unsuccessful in a bid, request feedback from the buyer to understand where you can improve.

By implementing these strategies, you can increase your chances of winning public sector contracts and building a successful business in the new procurement landscape.

Remember, winning public sector contracts is a marathon, not a sprint. It requires building relationships, establishing your reputation and consistently delivering high-quality services. With the right approach and persistence, you can use the Procurement Act 2023 to your advantage and access whole new avenues for growth.

Free eBook: Contractor Guide to Winning New Contracts

Seize The Opportunities Of The Procurement Act 2023

The Procurement Act 2023 is a game-changer for public procurement in the UK, and it’s time to take action. By understanding the key provisions of the Act, complying with new regulations and strategically positioning your business, you can unlock a wealth of opportunities in the public sector market.

Are you ready to tackle the complexities of public procurement and win lucrative contracts?

With the CHAS accreditation, you gain a competitive edge by demonstrating your commitment to health and safety, a critical factor in many public procurement decisions.

Imagine expanding your business, building a solid reputation and contributing to vital public projects; CHAS can help you achieve these goals.

Don’t miss out on the benefits of CHAS accreditation. Book a callback today with a CHAS expert to discuss how we can support your journey to public procurement success. Take the first step towards unlocking your full potential in the public sector market.