The Procurement Act (2023) aims to revolutionise public procurement.
Working in collaboration with TLT, learn how it may impact you and get ahead with our resources covering its implications for public sector procurement and the construction industry.
The following public contracting authorities are excluded from the Procurement Act (2023): the Security Service, the Secret Intelligence Service and the Government Communications Headquarters.
A connected person may be an individual or entity associated with a supplier applying to a tender. Additional criteria for connected persons can be found here.
Connected persons links to its introduction of the Debarment List as part of the Procurement Act (2023), which gives Contracting Authorities grounds to exclude certain suppliers from tenders, if an offence has been committed as per Schedule 6, Part 1.
The Procurement Act (2023) comes into effect from 24th February 2025, pushed back from its planned date of 28th October 2024.
Key Performance Indicators, or KPIs, as defined within the Procurement Act are a factor or measure against a supplier’s performance of a contract that can then be assessed during the lifecycle of the contract.
These are set and published by the Contracting Authority for the supplier entering a contract: to ensure a contract can be fulfilled by the supplier, the Contracting Authority must assess the supplier’s performance against the KPIs set, followed by publishing this information in relation to the assessment.
Where public contracts exceed £5million, at least 3 KPIs must be set in respect of the contract. This may include health and safety performance, customer satisfaction rates and quality of delivery.
In terms of public authority exclusions from the Procurement Act, the Security Service, the Secret Intelligence Service and the Government Communications Headquarters will be exempt from the Procurement Act.
For supplier exemptions, the Procurement Act sees the introduction of a published Debarment List. This record will minimise supplier-related risk to public procurement and encourage appropriate standards of behaviour for public tenders. Such exemptions are also linked to any connected persons, where a supplier can become exempt due to past activities or improper behaviour, competition law infringements and national security, for example.
Further details for grounds for debarment/exclusion can be found here.
A standstill period refers to the ‘waiting period’ between a contract being awarded and then entering a contract, between the contracting authority and the supplier.
Section 51 of the Procurement Act highlights an eight-working day standstill period – ten calendar days under previous legislation – beginning with the day the contract award notice was published. It provides suppliers with the opportunity to raise any concerns, or formally challenge, the award decision before a formal contract is entered. Where exemptions apply, a voluntary standstill period may be emplaced.
Broadly, those curious about the Procurement Act can:
Yes. The Procurement Act will replace PCR 2015 (Public Contract Regulations 2015), along with Utilities Contracts Regulations 2016; Concessions Contracts Regulations 2016; and Defence and Security Public Contracts Regulations 2011.
Yes. The Procurement Bill received Royal Assent in 2023, for it to then become the Procurement Act (2023), effective from 24th February 2025.
No. Existing contracts will continue to be managed under the current regime. Contracts from 24th February 2025 will come under the Procurement Act.
Nothing. Live procurements will continue under the current regime. Procurements from 24th February 2025 will come under the Procurement Act.
