**London**: The Procurement Act 2023, effective from 24 February, introduces significant changes in public sector procurement in the UK, focusing on flexibility, transparency, and social value, while requiring major adaptations from both public buyers and suppliers in their procurement approaches.
The Procurement Act 2023 took effect in the UK on 24 February 2023, following an extensive four-year development process initiated by the Green Paper: Transforming Public Procurement, released in December 2020. This legislation seeks to establish a more streamlined, flexible, and accessible procurement framework, particularly in the public sector, in alignment with the UK government’s post-Brexit objectives. While the act applies primarily to England and Wales, its implications extend slightly into Scotland.
Kuldip Dhanoya, a partner and head of public procurement at TLT, articulated the significance of the new act, emphasizing the importance of early engagement opportunities in the bidding processes. “Monitoring and participating in early engagement opportunities will be a key part of bidding processes,” he stated. This change signifies a marked shift in the approach toward procurement, incentivising suppliers to be proactive in their engagement with public sector buyers.
With the introduction of the Procurement Act, public sector entities are now required to overhaul their internal procurement methodologies to accommodate new procedures and policies. This transformation involves comprehensive training at all organisational levels and ensuring the compatibility of operations with the newly established Central Digital Platform. Suppliers, on their part, are encouraged to prepare vigorously for the transition, with discussions emerging regarding the benefits that increased transparency and flexibility may afford in the procurement landscape.
One of the defining features of the act is the shift from the ‘Most Economically Advantageous Tender’ (MEAT) approach to the ‘Most Advantageous Tender’ (MAT) method. This change, as explained by Will Campbell, social value engagement lead at Loop, removes the emphasis on ‘economically’ and facilitates a broader focus on social and environmental impacts. Campbell elaborated that the new framework provides contracting authorities with enhanced autonomy to assess tenders based on quality and non-price elements, which could encourage local employment, reduced carbon footprints, and local supply chain utilisation—core aspects of social value.
Another significant modification involves the establishment of ‘open’ frameworks, allowing more suppliers to join existing contracts throughout their duration, thus fostering innovation and broadening participation. Similarly, the transition from dynamic purchasing systems to ‘dynamic markets’ promises the delivery of more complex requirements compared to traditional procurement methods.
A notable addition to the legislation is the introduction of a debarment list, which mandates buyers to verify details of lead suppliers and subcontractors at the initiation of each procurement. This step aims to enhance the integrity of the procurement process by enabling regular audits and assessments of the supply chain’s eligibility and compliance.
The act places an increased emphasis on achieving public policy objectives rather than merely selecting bids based on cost. The latest National Procurement Policy Statement outlines specific objectives that buyers are required to consider when conducting procurements—these include driving economic growth and delivering social value. As a result, evaluating supplier performance against these criteria may become integrated into bidding evaluations and contractual key performance indicators.
While the Procurement Act 2023 aims to simplify and enhance the procurement process, industry professionals are advised that the changes may initially introduce additional complexities. Experts highlight the necessity for public sector bodies to adapt their internal policies, training protocols, and operational frameworks to successfully navigate this evolving landscape.
In conclusion, the implementation of the Procurement Act 2023 signals a transformation in the UK’s procurement landscape, aiming for greater transparency, flexibility, and inclusivity. Both public sector buyers and suppliers are called to remain vigilant and engaged in this new regime, ensuring they leverage the opportunities provided to achieve innovative and impactful procurement solutions.
Source: Noah Wire Services
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