The Procurement Act 2023 – Explaining the Delay to Implementation

In October of last year, the Cabinet Office stated 28 October as the official implementation date for the Procurement Act 2023. However, following a consultation period and this summer’s general election, this has been delayed by four months to allow more time and amendments to be made to the widest changes to public sector tendering in a generation.

We recap some of the changes introduced by the Act, rationale for delaying the implementation date and what bidders can do in the interim to prepare.

The Procurement Act 2023 – recapping changes

Shortly after the Procurement Act received royal assent, we provided our initial thoughts and analysis to help bidders interpret the 137-page document.

Our ongoing series of blogs has taken a deep dive into various changes introduced by the Procurement Act 2023, including:

• The introduction of a public debarment list, listing excludable suppliers in a publicly accessible place to increase oversight
• Omitting social value entirely from the Act’s legislative text, and why social value will continue to be relevant within public sector bids and tenders
• New requirements to set and publish KPIs and supplier performance for contracts and framework agreements with a value exceeding £5 million per annum
• Increasing pre-bid activity between suppliers and contracting authorities, stimulating greater engagement and coordination whilst also establishing a bid pipeline
• The introduction of dynamic markets to public sector procurement, effectively replacing the old dynamic purchasing systems (DPS) and giving contracting authorities greater flexibility.

With so many moving parts, many contracting authorities and bidders were sceptical the targeted implementation date could be met – particularly as details of new templates, technical guidance and procurement platforms had not been announced.

Why is there a delay to implementation?

12 September saw a written ministerial statement issued to the Cabinet Office, which amended the implementation date by four months to 24 February. Reasons for the delay to implementation included producing a new National Procurement Policy Statement (NPPS), which is more aligned with the incoming government’s vision for fair, open and transparent procurement.

Key individuals within procurement bodies, including Torus, Places for People and Procure Plus, have also welcomed the delay, saying it provides contracting authorities with the necessary time and resource to address technical guidance, templates and the new central digital platform which will be used by buyers and suppliers alike.

Consequently, whilst a delay to the implementation date may be frustrating for those of us who have followed the Act’s journey from consultation period to royal assent, it seems a sensible and risk-averse choice.

Explaining the National Procurement Policy Statement

The NPPS will also allow for a ‘mission-led’ procurement regime which is aligned to the priorities of the new government. However, the incoming government believed that provisions within the NPPS were not sufficiently aligned or strong enough for requirements.

Closing 4 November, the government have published a stakeholder survey to determine how the changes introduced by the Procurement Act 2023 can:

• Achieve value for money when delivering public works and services
• Increase social value and further integrate it within public procurement processes
• Accelerate collaboration between all stakeholders during the tender process
• Foster innovation within public procurement, to effectively identify challenges, support ‘mission outcomes’ and improve commercial capability.

By engaging with contracting authorities and suppliers, the NPPS signals a collaborative approach to future public sector bidding.

What bidders can do in the interim

Even with the delay to implementation, it is important bidders prepare for the changes ushered in by the Procurement Act. Failure to do so could result in losing key competitive advantages in an already highly competitive environment, risking loss of marks or even noncompliance. In advance of 24 February, we advise that bidder organisations:

• Review tracking systems to ensure compliance with each contract’s KPIs and terms and conditions, avoiding potential performance issues which could land you on the debarment list
• Scrutinise relevant guidance issued by the government, including the learning and development guidance from the central government’s Transforming Public Procurement page
• Monitor outcomes from the NPPS survey, which may further alter or amend the Procurement Act’s changes.

As part of our ongoing series of blogs on the Procurement Act, we will continue to monitor and provide our view on any changes in advance of the new implementation date.

In the interim, if you would like to discuss the bid and tender services we provide, contact our sales and marketing team at info@executivecompass.co.uk or via telephone 0800 612 5563.