The Procurement Act 2023 was due to be implemented at the end of October this year, but the UK Government has stated it will be delayed to 24th February 2025 https://questions-statements.parliament.uk/written-statements/detail/2024-09-12/hcws90.
The Government will now produce a new National Procurement Policy Statement which will set their priorities for public procurement. The Procurement Act which received royal assent in October 2023 aims to simplify the current procurement legislation to create a simpler and more transparent regime for public sector procurement. It aims to deliver better value for money, economic growth and improved social value. It is designed for transparent public procurement that is open to new entrants such as small businesses and social enterprises.
A reason for the delay is the general election that took place in July 2024. The Parliamentary Secretary for the Cabinet Office states:
“Under the Act, the previous administration published a National Procurement Policy Statement to which contracting authorities will have to have regard. But this Statement does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value.”
And:
“It is crucial that the new regime in the Procurement Act goes live with a bold and ambitious Statement that drives delivery of the Government’s missions, and therefore, I am proposing a short delay to the commencement of the Act to February 2025 so this work can be completed. I am confident that the extra time to prepare will allow for a more seamless transition, ensuring a smoother and more effective implementation process for both contracting authorities and suppliers.”
Under the Act, public procurements are to be evaluated and contracts awarded under Most Advantageous Tender (MAT) rather than the current Most Economically Advantageous Tender (MEAT). Social value is being recognised as an important factor in public sector contracts.
Frith Resource Management will keep you posted on the new National Procurement Policy Statement and the implementation of the Procurement Act 2023. For details register for our newsletter here or check out our website