The Procurement Act 2023 reforms the UK’s public sector, utilities, and defence procurement. It aims to make public buying more effective and efficient—faster, simpler, and more accessible to suppliers—and increase transparency. This is a major change for buyers and suppliers alike.
What Are the Key Changes?
Previously, four different rule books covered general public contracts, utilities, concessions, and defence. These are now consolidated into a single act, although the act has different rules depending on the contract type.
The overarching procurement objective is now value for money, acting with integrity and, maximising public benefit, selecting the Most Advantageous Tender (MAT).
Procurement procedures are changing from six prescriptive procedures to two. These procedures provide explicit flexibility for buyers to design or adopt the best approach for the market and their specific requirements.
Arguably, the most far-reaching change relates to transparency. Buyers are required to issue a broader range of Transparency Notices both at planning and actual initiation of the procurement, at each material decision stage and then throughout the contract term until termination. This is a major investment across affected buyers and in terms of systems and resources.
This additional transparency is aimed at opening public procurement and, over time, collecting a body of data to analyse and improve how the £ 393 billion of public funds are spent and give assurance to suppliers and taxpayers through transparency. To this end, the government has mandated the use of ‘Open Data’ and is creating a single central platform for buyers to hold and share the body of data.
Public sector frameworks
What is a framework?
Frameworks are a set of terms under which goods and services can be bought from a list of suppliers who have submitted a bid to be allocated a place on the framework and who met the criteria. Usually, there are several suppliers for each framework.
How are Frameworks Used?
If a buyer has a requirement, they can consider whether a framework is open to them (not all frameworks are open to all buyers) and whether it is suitable (does the scope of goods/services meet their needs). If the answer is yes, they can then buy using the framework. Typically, this means contacting all the suppliers listed on the framework (or Lot), summarising the requirement and asking if the supplier would like to quote (AKA requesting an Expression of Interest or EOI), then getting quotes using the rules set out in each framework and complying with other requirements such as issuing transparency notices. Some frameworks allow you to issue a ‘Direct Award’ where the buyer uses the information in the framework documentation to determine which supplier has the best balance of price and quality.
Why are frameworks useful?
Public Sector procurements are resource-intensive for both buyers and suppliers. To streamline the process, a number of frameworks are set up or sponsored by public bodies. They provide a pre-approved list of suppliers, and often, terms are agreed upon, which shortens timescales and reduces the resources needed. In addition, the aggregation of public spend can produce economies for all public buyers, whatever their individual spend.
What are the disadvantages of Frameworks?
The National Audit Office has reviewed the use of frameworks and pointed out that competition increases value for money but that their analysis of CCS frameworks pointed to “a number of frameworks have a few suppliers winning most of the work, creating highly concentrated markets.” A framework typically runs for four years, and in that time, the rest of the potential market is shut out. Under the new Procurement Act, buyers can reopen a framework to consider new entrants, which mitigates this.
Debarment & Open Frameworks in the Procurement Act 23
What is ‘Debarment’ in the Procurement Act 23?
Debarment is the exclusion of a supplier from taking part in public procurements.
The government will maintain a debarment list under the new procurement act, listing excluded suppliers and preventing those suppliers from winning future contracts.
The list is public, so any buyer can view a supplier’s status. Common offences that can lead to a supplier being debarred include serious breaches of contract and convictions for criminal offences, e.g., fraud.A supplier can apply to be removed from the list, provided there has been a material change in circumstances. Suppliers can also appeal their addition to the debarment list if they believe they were wrongly included.
What is an ‘Open Framework’ in the Procurement Act 23?
Under the Procurement Act 2023, a provision now exists to create an “open framework”.
An “open framework” is a series of successive frameworks for substantially the same scope of requirements. This means that new suppliers can join over the life of a framework and not just when it is first established. An “open framework” must be re-opened for suppliers to tender (or retender) for an award at least once in the first three years of the initial framework period and then again at least once in each five years of the second framework.
The “open framework” overall provides a longer potential term (eight years maximum) than allowed by the traditional framework (four years maximum) because it commits to testing the market and providing access opportunities at mandatory intervals. There is no limit on the number of times the framework can be reopened. This innovation aims to create greater opportunities to access public spending and allow new entrants. It should enable public buyers to access new developments and suppliers and increase competition.
Dynamic Markets relating to the new Procurement Act
What is a ‘dynamic market’?
The Procurement Act introduces ‘Dynamic Markets.’
These are a list of qualified suppliers that remain open to new joiners and can be established for a wide range of goods, services, and works.The public buyer sets the conditions for joining and allows entry once certain the supplier meets the entry conditions. Entry conditions cannot change over the life of the market. The public buyer will adopt a competitive, flexible procedure. The aim is to open access to public spending for suppliers while offering a flexible and efficient route to market.
What is a ‘Dynamic purchasing system’?
Dynamic Purchasing Systems (DPS) are partly replaced in the Procurement Act by Dynamic Markets and Open Frameworks. Previously, they offered an open market route for public buyers as they remained open to new suppliers over the DPS’s lifetime.
Transparency Notices
What is A ‘Transparency Notice’?
In Public Sector procurement, a transparency notice provides clear information about how contracts are awarded, ensuring openness and accountability. In the pre
Procurement Act 2023 world, these were limited mainly to informing about procurement opportunities, intentions, and contract awards.
Under PA2023, there are more notices across a procurement lifecycle, from early pipeline through award, contract management, and termination, without a competitive tender process. These are supported by a central platform using Open Data.
Transparency notices are designed to promote fair competition, prevent corruption, and provide the public with a clear picture of government spending.
