The Procurement Act 2023: Can it deliver real change?
The Procurement Act of 2023 has the potential to significantly improve public procurement in the UK. It outlines mechanisms that could increase competition, expand opportunities for smaller businesses to supply the public sector, and drive innovation, better outcomes, and improved transparency.
But can these aspirations translate into reality?
The current landscape
Recent years have seen a decline in trust in public sector procurement. High-profile scandals have raised serious questions about fairness and accountability. The success of the Act hinges on effectively addressing these concerns, of which are outlined below against the objectives of the Act.
The Act's Objectives and Implementation Strategies
The Procurement Act tackles these issues through four key objectives:
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Creating a simpler and more flexible commercial system: The Act promises a new central digital platform with success hinging on its design.
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Focus on user experience: Streamlining interfaces, offering clear guidance, and ensuring compatibility with various devices can make the platform truly user-friendly for both suppliers and buyers.
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Standardisation and flexibility: Implementing standardised processes for core functionalities while allowing customisation for specific needs can achieve a balance between simplicity and flexibility.
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Robust integration: Seamless integration with existing government systems will be crucial to avoid data silos and streamline workflows.
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Opening up public procurement to new entrants: The Act aims to make it easier for small businesses and social enterprises to compete.
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Targeted outreach and support: Providing dedicated resources and training programs can help smaller players navigate the procurement process and understand specific government requirements.
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Phased bidding processes: Breaking down large contracts into smaller components can make them more manageable for smaller businesses and encourage participation from a wider pool.
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Faster payment terms: Ensuring prompt payments, potentially through shorter payment cycles or electronic invoicing, can improve cash flow for smaller businesses.
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Taking tougher action on underperforming suppliers: The Act introduces measures to identify and exclude unreliable suppliers.
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Clear performance benchmarks: Establishing well-defined KPIs tailored to specific contracts will provide a transparent basis for evaluating supplier performance.
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Standardised reporting mechanisms: Implementing a centralised forum for reporting poor performance can ensure consistency and facilitate cross-departmental information sharing.
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Centralised debarment list: Maintaining a readily accessible debarment list with clear criteria for inclusion as a matter of public record will enhance accountability.
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Embedding transparency throughout the procurement process: The Act emphasises transparency to ensure accountability and public trust.
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Open data initiatives: Publishing contract data and key performance indicators can provide valuable insights for the public and encourage scrutiny.
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Regular communication: Implementing clear communication channels can keep the public informed about procurement processes, decisions, and outcomes.
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Independent oversight: Establishing an independent oversight body can further strengthen public trust by providing a mechanism for reporting concerns and ensuring fair practices.
The Procurement Act of 2023 offers a promising framework for improving public procurement. However, its effectiveness hinges on its robust implementation. By focusing on user-friendly technology, targeted support for new entrants, clear performance benchmarks, and open communication, the Act can hopefully deliver real change and rebuild public trust.
Heather Cover-Kus
Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.
Ellie Huckle
Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.
Annie Collings
Annie is the Programme Manager for Cyber Resilience at techUK. She first joined as the Programme Manager for Cyber Security and Central Government in September 2023.
Austin Earl
Austin joined techUK’s Central Government team in March 2024 to launch a workstream within Education and EdTech.
Ella Gago-Brookes
Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.
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