Procurement Act achieved its Royal Assent in autumn 2023. You may already know that the Cabinet Office is working on The Procurement Act and developing the secondary legislation.

For any questions relating to the Procurement Act itself, TPP training, or technical questions concerning systems, please contact the Cabinet Office or visit the Transforming Public Procurement webpages.

The Procurement Act is an important piece of legislation which will revolutionise the way the public sector buys goods and services, bringing a range of benefits, including:

We expect the new regime to commence in October 2024, with at least 6 months’ advance notice. The existing rules will continue to apply for contracts that are already in progress, so the changes will not happen overnight.

For suppliers, there will be new features which should make it easier to do business with contracting authorities:

These changes will drive innovation, deliver better outcomes and embed transparency right through the commercial lifecycle, so everyone can access procurement data and see how money is spent. The Government Commercial Function will be providing a comprehensive training package for procurement practitioners in government departments and public bodies to ensure the benefits of the new regime are quickly realised, and also working with leading business groups and trade associations to make some of this training as well as guidance and support available for the suppliers. There is already a range of information and resources about the new regime on the Transforming Public Procurement landing page including a series of ‘Knowledge Drop’ training videos with tailored versions designed specifically for suppliers, including SME and VCSE suppliers. Materials will continue to be added and further resources added, as we move towards go-live.

In the meantime, there are actions you can start to take to prepare:

1. Dedicated information for suppliers, particularly around the Procurement Review Unit and Central Digital Platform will be issued as we approach the 6 months’ preparation period. In the meantime, if you would like to discuss any aspect of the new Act please contact the dedicated Transforming Public Procurement helpdesk at procurement.reform@cabinetoffice.gov.uk.

2. CCS is planning to organise pre-market engagement sessions before the regime goes live. To get the most out of those sessions, it is worth familiarising yourself with TPP and the legislation change ahead of time – don’t wait until October 2024.

Ref. Crown Commercial Services Communications

Frequently Asked Questions

What are the Key Changes Introduced in the UK Procurement Act 2023?

The UK Procurement Act 2023 introduces a new procurement regime that brings the rules for the procurement of public contracts, concession contracts, utilities contracts, and defense and security public contracts under one Act. The Act replaces the existing procurement rules and aims to simplify and streamline the procurement process.

How do the Thresholds for Procurement Differ Under the New 2023 Act?

Under the new Procurement Act 2023, the threshold for public procurement has been increased to £139,000 for central government contracts and £4.3 million for sub-central government contracts. This is intended to reduce the administrative burden on smaller businesses and increase opportunities for SMEs to participate in the procurement process.

What Summary Can You Provide for the UK Procurement Bill Passed in 2023?

The UK Procurement Bill passed in 2023 aims to modernize and simplify the procurement process in the UK. The Bill introduces a new procurement regime that consolidates the rules for the procurement of public contracts, concession contracts, utilities contracts, and defense and security public contracts under one Act. The Bill also introduces new procedures, such as the competitive flexible procedure, to increase flexibility and efficiency in the procurement process.

Which Guidance Documents are Essential for Complying with the Procurement Act 2023?

The UK government has published several guidance documents to help organizations comply with the Procurement Act 2023. These include a short guide for senior leaders and a short guide for suppliers, which provide an overview of the key changes introduced by the Act and guidance on how to comply with the new procurement rules.

What Does the Competitive Flexible Procedure Entail as per the Procurement Act 2023?

The competitive flexible procedure is a new procurement procedure introduced by the Procurement Act 2023. This procedure allows contracting authorities to negotiate with bidders during the procurement process and to award contracts based on the most economically advantageous tender. The procedure is intended to increase flexibility in the procurement process while ensuring that contracts are awarded to the most suitable bidder.

How do the Miscellaneous Provisions Regulations of 2024 Affect the Procurement Act 2023?

The Miscellaneous Provisions Regulations of 2024 amend the Public Contracts Regulations 2015 to ensure that they are consistent with the new procurement rules introduced by the Procurement Act 2023. The regulations clarify certain aspects of the procurement process, such as the use of electronic communication and the calculation of contract value. The regulations also introduce new requirements, such as the obligation to publish an annual procurement report.

About Baachu 

Baachu is a facilities management consulting firm that offers a range of services to its clients. The company’s services cover asset surveys, CAFM solutions, PFI/PPP project management, technical support for PFI handback processes, facilities management procurement, strategic mobilisation and transition program, sales pipeline booster, FM bid and proposal consulting, FM estimating and bid pricing, thought leadership program, M&A support, and operational benchmarking.

Baachu also offers a range of reports that provide insights into various markets, including the UK facilities management market, UK schools, colleges, and universities FM market, UK public sector FM market, UK commercial building and offices FM market, cleaning services market, and FM in manufacturing, industrial, and pharma (UK). These reports cover topics such as market size, market segmentation, top FM services providers, key contracts, risks, trends, opportunities, customer experience, technology, and wellbeing impact.

In addition to its reports, Baachu provides a range of insights through events such as webinars, podcasts, member blogs, education series, case studies, FM insider newsletter, and scorecard. The company also offers three membership levels: Rain Insider (Individual), Rain Plus (SME), and Rain Plus (Enterprise).

Baachu’s Lens service provides a live FM market an competitive intelligence to help clients better positive themselves in the market.