How to remain compliant as a contracting authority in public sector procurement – Procurement Essentials

In England and Wales, the regulatory framework governing public sector procurement is currently outlined in the Public Contracts Regulations 2015 (PCR 2015).

Failure to comply with PCR 2015 can result in a number of consequences including, but not limited to, legal challenges, financial penalties for contracting authorities, the award of damages to an operator which has suffered loss or damages as a result of the breach and reputational damage.

Transforming Public Procurement

On 26 October 2023 the landmark Procurement Bill was granted Royal Assent and became the Procurement Act 2023. The Procurement Regulations 2024 were then laid in Parliament on 25 March 2024. This statutory instrument (SI), which is a form of secondary legislation, applies a broad range of powers within the Procurement Act 2023 and provides additional detail about various aspects of the new procurement regime –  The SI available to view

Once the Procurement Regulations 2024 have commenced, or are ‘live’, these new regulations will apply to all agreements created after that time. From then on, all activity carried out under new agreements must comply with it. 

However, the new regulations are not retroactive. The Public Contracts Regulations (PCR) 2015, which previously governed procurement activity in the UK, will continue to apply to any CCS agreements created prior to the ‘go live’ of the new regime. Find out more about preparing for Procurement Regulations 2024.

What are the Public Contracts Regulations 2015?

The Public Contracts Regulations 2015 (PCR 2015) remains the key legislation for procurement activities undertaken by public sector bodies in England and Wales. 

These regulations aim to ensure that public procurement processes are fair, transparent, and non-discriminatory.

Many factors affect whether PCR 2015 applies. PCR 2015 Regulation 2 defines contracting authorities as:

• the State
• regional or local authorities
• bodies governed by public law
• associations formed by one or more such authorities or bodies

The key principles of PCR 2015 are:

• equal treatment: all suppliers must be treated fairly and without discrimination, ensuring that everyone has an equal opportunity to participate in the procurement process
• transparency: procurement activities must be conducted transparently, with clear and accessible information provided to all stakeholders to promote trust and accountability
• competition: the regulations aim to encourage competition by inviting a diverse range of suppliers to participate in procurement processes, preventing anti-competitive behaviour
• proportionality: procurement procedures should be proportionate to the value and complexity of the contract, minimizing administrative burdens for both contracting authorities and suppliers
• publication of notices: contracting authorities are required to publish contract notices in the Find a Tender Service (FTS), FTS is free to use and replaces the role of Tenders Electronic Daily, the Official Journal of the EU (OJEU/TED) for procurements in the UK, providing details of the procurement opportunity and inviting interested suppliers to participate

Why compliance is essential 

By adhering to the requirements outlined in the Public Contracts Regulations 2015, contracting authorities can promote accountability, mitigate risks, and achieve value for money in the procurement of goods and services for the public sector. 

Through ongoing training, resource allocation, and robust procurement processes, contracting authorities can navigate the complexities of procurement regulation and contribute to the delivery of high-quality public services for the benefit of citizens across the UK.

Responsibilities for contracting authorities

There are a number of obligations that contracting authorities must meet to remain compliant with the PCR2015:

• publication of notices: contracting authorities must publish contract notices in the Official Journal of the European Union (OJEU) for contracts that exceed certain thresholds. These notices provide details of the procurement opportunity and invite interested suppliers to participate
• adherence to procurement procedures: contracting authorities are required to follow prescribed procurement procedures, which may include open, restricted, competitive dialogue, or negotiated procedures. These procedures are designed to ensure fairness and transparency throughout the procurement process
• evaluation of tenders: contracting authorities must evaluate tenders in accordance with predetermined criteria and award criteria specified in the contract notice. The evaluation process must be conducted objectively and without bias, taking into account the stated requirements of the contract
• notification of decisions: contracting authorities are obligated to notify all participating suppliers of the outcome of the procurement process. This includes informing successful suppliers of their selection and providing feedback to unsuccessful bidders upon request
• standstill period: following the award of a contract, contracting authorities must observe a standstill period during which unsuccessful suppliers can challenge the decision. This period allows suppliers to seek clarification and, if necessary, take legal action to address any concerns regarding the procurement process

Compliance challenges

While the regulations aim to promote compliance and best practice in public sector procurement, contracting authorities may need help to ensure adherence to these requirements. 

Challenges can include understanding the complexity of the regulations, facing resourcing constraints or not having the required technical expertise within teams. 

Buying through CCS complies with procurement regulations but simplifies the process for buyers.

Our commercial agreements have standardised contract terms and guidance for buyers, and are free to use for public sector and third sector organisations, for example, local authorities, charities and housing associations.

We have commercial expertise, deep knowledge of product and service categories, and national buying power.

Find out more

If you require support with using any CCS agreements, please do not hesitate to contact us on 0345 410 2222 or info@crowncommercial.gov.uk.

Did you know CCS also provides a free, end-to-end, Assisted Procurement Service that can help public sector customers save time and money? 

More: You can now find all of our Procurement Essentials articles in one place on our website. 

More information and guidance for public and third sector buyers, as well as full details of all of our commercial agreements, can be found in the latest digital brochure.