Supplier information for the procurement Act 2023 – Supplier Specifics

What is the Procurement Act 2023 and what does it mean for suppliers?

The Procurement Act 2023 is a new law that will significantly change public procurement for the first time since 2015.

The act is due to come into effect on 24 February 2025 and it aims to simplify and improve the procurement process by:

• making public procurement more flexible and more transparent
• introducing new opportunities that benefit suppliers of all sizes, including Small and Medium Enterprises (SMEs) and Voluntary, Community, and Social Enterprise (VCSEs)

This brief supplier guide outlines the key changes and benefits for businesses that supply goods, works or services to public sector organisations.

Benefits of the Procurement Act 2023 for suppliers

The act should make it easier for suppliers to do business with contracting authorities. Read more about the benefits below:

1) Simplified bidding process

The Procurement Act 2023 aims to provide more opportunities for suppliers by:

• simplifying the bidding processes, making it easier for suppliers to bid for contracts and engage with the public sector
• making commercial frameworks more open, ensuring that prospective suppliers are not excluded for extended periods
• removing bureaucratic barriers for smaller businesses and VCSEs so they can bid for more contracts
• enhancing negotiation and partnership opportunities through a new ‘competitive flexible’ procedure

2) Improved financial stability and cash flow for suppliers

Transparency and financial stability for suppliers are key focuses of the new legislation. The Act will significantly improve cash flow for many businesses working with government organisations by:

• strengthening provisions for prompt payment throughout the supply chain
• extending 30-day payment terms to a broader range of public sector contracts

3) Greater transparency and accessibility with the Central Digital Platform

The act will introduce a Central Digital Platform (CDP) which will be an enhancement to the existing Find a Tender Service.

The CPD will:

• simplify the process of finding and bidding for contracts

• feature a straightforward registration approach
• allow you to store and easily update your core business details for use across multiple bids
• remain free to use, ensuring equal access for all potential suppliers and making it easier to search and set up alerts for tenders that interest you

You will not need to bookmark a new service page, the find a tender service URL will stay the same. However, suppliers will need to re-register and enter their organisation information.

4) Greater oversight

The new regime also introduces greater oversight to ensure fair practices. It will establish a new Procurement Review Unit (PRU) to enhance public sector procurement practices and safeguard against suppliers deemed to pose risks. 

The PRU will ‘go-live’ when the new procurement act goes live in February 2025, comprised of 3 services:

1. the existing Public Procurement Review Service (PPRS)
2. a new Procurement Compliance Service (PCS)
3. a new Debarment Review Service (DRS)

The Cabinet Office will provide more details on these services, and how they will work, when the new regime goes live. 

How suppliers can prepare for Procurement Act 2023

Changes will not happen instantly. The existing rules will continue to apply for procurement contracts that are already in progress. 

As a supplier, you should prepare for the changes by familiarising yourself with the Act. 

You can also sign up for regular updates. The Cabinet Office will use this to keep you up to date on webinars and ‘how to’ videos. 

How to learn more about the new Procurement Act

• visit the Transforming Public Procurement landing page, which offers comprehensive resources, including summary documents and informational videos
• watch the Knowledge Drop videos that have been developed to provide a broad understanding of the Procurement Act and its key changes, with dedicated content for SMEs and VCSEs

If you want to dive in deeper, you can also access many of the training materials Cabinet Office are providing to public sector buyers. This includes our suite of guidance documents exploring the different elements of the Act.