The Procurement Act 2023
Public procurement law is changing. One in every three pounds of public money, around £300 billion a year, is spent on public sector procurement.
A short guide for suppliers
If your business supplies goods or services to organisations in the public and utility sectors, you need to know about the changes.
The new Procurement Act will help companies of all sizes, because:
- it includes a new digital system will make bidding easier for suppliers. You can register and save your details to see all work opportunities on a single website
- it will make it easier to bid, negotiate and work in partnership with the public sector
- the structure will be more flexible, giving new suppliers a chance to join regularly
- there will be prompt payment for more businesses in public sector supply chains
- a stronger exclusions framework will take tougher action on underperforming suppliers
This will drive innovation, creative ways of working and better end results. It will also make the whole buying process clear, letting everyone see how money is spent.
Government and businesses have worked together to make these changes. The new act is simpler, cost effective and improves public services. Smaller companies welcome the new buying rules too. The law will change on 24 February 2025*. Old contracts will keep the old rules, these will change gradually.
*On 12 September 2024 a Written Ministerial Statement (opens new window) was published in Parliament announcing that the new rules will go live on 24 February 2025. A short delay of four months from the previous go-live date of 28 October 2024.
The new Procurement Act does not bind the suppliers. It will make your work with public bodies and utilities better. It's about everyone changing how they think and act. You can play a big part in making this change happen.
New Central Digital Platform
The Act legislates for provision of a central digital platform (CDP) to facilitate the requirement for public sector to publish notices and documents in respect of procurement.
This will be where all UK contracting authorities will publish information relating to procurement. It will be place for suppliers to find out what opportunities are coming along that they may wish to bid for, as well as details on contracts that have been let, how contracts are being changed and other useful information.
Additionally, suppliers will need use the CDP to register, input and then share their commonly used information as part of the procurement.
This platform will be enhancement of the existing Find a Tender (opens new window) service with a simple registration for suppliers to store their core business details that then can be used for multiple bids.
It will be free to use - there are no charges - no one should pay to view public sector contract opportunities.
Summary of the key facts you need to know about the central digital platform. (opens new window)
Go live: 00:01 on 24 February 2025.
Guidance and Support
Cabinet Office guidance around the Procurement Act is divided into four stages, representing the procurement lifecycle:
- Plan: Having clear and transparent commercial pipelines and a good understanding of the market to plan for the procurement process.
- Define: Achieving flexible, efficient procurement process that encourage broad participation and are open and accessible to all.
- Procure: Evaluating bidder compliance with exclusion grounds and selecting suitable suppliers for the contract.
- Manage: Working with suppliers and managing the contract to ensure successful achievement of the contractual outcomes
This short YouTube animation (opens new window) for suppliers summarises the new Procurement Act, next steps and timelines, outlines the support which will be made available, and provides suggestions for initial steps to help prepare.
The Transforming Public Procurement landing page provides further information about the new regime and the L&D, guidance and support that Cabinet Office is providing. Access further materials and resources about the new regime, as we move towards go-live. (opens new window)
The Procurement Act 2023 - a short guide for suppliers outlines the benefits for suppliers. (opens new window).
If you haven't already, sign up to receive updates on the Act from the Cabinet Office. (opens new window).