Commercial advisory
Wherever you are in the business lifecycle – and whether you operate in the public or private sector – commercial assurance and business transformation are both crucial elements to your organisation.
Preparing for the Procurement Act 2023
The Procurement Act 2023 is a new legislation set to transform the procurement procedures in the UK. It will replace all existing EU-based procurement regulations, including Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concession Contracts Regulations 2016, and Defence and Security Public Contracts Regulations 2011.
This is simply the biggest change to public procurement legislation for all public bodies, which between them spend £300bn per year. The Procurement Act 2023 aims to overhaul the prior system, simplifying processes, focusing on transparency, promoting fairness and integrity, delivering value for money, and achieving public benefit maximisation. Additionally, it encourages broader national goals like supporting SMEs (small and medium-sized enterprises) and achieving net-zero environmental targets.
The new procurement regime will come into force in October 2024. The Act is reliant on future secondary legislation that will set out more detail on how the Act will operate. The first set of guidance was released on 26 March 2024, covering the legal framework, key changes and key points which include definitions of Contracting Authorities, Valuation of Contracts, mixed procurement, thresholds and other key information. Note that most organisations will still have to operate the contracts to which previous regulation applies.
To prepare for the new requirements of the Procurement Act 2023, public sector organisations should treat this as an organisational change programme. This includes:
Additionally, public sector organisations should evaluate how different teams (such as procurement, contract management, finance and technical) will be impacted, and how they will need to align to ensure readiness for effective implementation of the Act. The training requirements for affected teams will need to be identified, and a communication strategy should be rolled out to raise awareness and ensure that everyone across the organisation understands their obligations.
To speak with a member of our Commercial Advisory Team about the Procurement Act 2023, please get in touch.
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