Crown Commercial Service guides us through how to prepare for the Procurement Act 2023
The rules that govern how public money is spent in the UK are about to change.
When the Procurement Act 2023 takes effect, currently expected to occur on 24th February 2025, the UK’s procurement landscape will come under a new set of regulations.
These new regulations will bring significant changes, and everyone involved in public sector procurement must understand what is happening, why, and how they can best prepare for the upcoming changes.
Why are new regulations being introduced?
When the UK left the EU in 2020, it was decided that it needed a simpler, more flexible commercial system that better met our country’s needs while keeping us compliant with our international obligations. This new set of regulations provides a number of benefits to suppliers and buyers, including:
- Supporting innovation and removing red tape or barriers to progress.
- Improving transparency by giving everyone access to public procurement data through a fully open and transparent system.
- Enabling faster competition processes for emergency buying gives buyers the tools to meet urgent needs quickly and efficiently.
- Simplifying the process of working with the public sector, supporting more SMEs to bid for contracts.
The Procurement Act 2023 will apply to any commercial agreement created after the ‘go-live’ date, and all activity carried out under these agreements must comply with these new regulations.
How can public sector organisations prepare?
It is important to prepare for the new regulations as early as possible so that the public sector can start benefiting from them when they take effect.
CCS is preparing to implement the new regulations through five workstreams. Buyers can use a similar approach to assess readiness in their own organisation.
The five workstreams are broken down as follows:
Commercial activity
In advance of the new regulations, public sector organisations with existing contracts should review all current and planned commercial opportunities. Understanding when these contracts will expire, if and how they will need to be renewed or replaced, and the agreements available to do so is vital for future-proofing an organisation’s procurement strategy
Ways of working
Reviewing the way an organisation works in terms of their procurement activity and ensuring these processes are robust and future-proofed for the new regime is vital to a smooth transition.
Guidance and information
Organisations can help ensure a smooth transition by creating appropriate guidance and resources for their staff on the Procurement Act. These should take particular account of the provisions and requirements introduced by the new regulations and highlight where particular changes have been introduced.
Organisations can also review the existing documents that their teams and suppliers use for training, guidance and information about the procurement process. Some of these documents can become outdated over time, so ensure they include the most up-to-date information.
Systems
New procurement regulations mean that some things in the process will need to be done differently in future.
Examining the readiness of an organisation’s systems and what changes may be needed in advance of the go-live can help contracting authorities pre-empt these changes and be ready to incorporate them.
People
Coordinate your people’s training needs and ensure they fully understand the new regulations through regular communications and necessary training.
What training resources are available?
Transforming Public Procurement (TPP) is the readiness programme for the new procurement regulations. The Cabinet Office has led this programme, which has developed a suite of official training programmes to help the public sector prepare for them.
The primary training they have provided is the Transforming Public Procurement Knowledge Drops, aimed at anybody who interacts regularly with procurement. They provide a high-level overview of the changes the new regulations will bring, delivered through a series of short on-demand broadcast presentations.
Different versions of these Knowledge Drops are available for buyers and suppliers in the public sector, as well as a third adaptation aimed specifically at small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprises (VCSEs).
Buyers who require more than a general overview of the new regime can take advantage of more detailed and specific training options, including self-guided e-learning modules and more intensive ‘deep dive’ training courses. Visit the Cabinet Office Transforming Public Procurement webpage to learn more about these and access more resources around the TPP project.
Find out more about the Procurement Act 2023
CCS has created a dedicated implementation guide to help public sector organisations prepare for the new procurement regulations. Download the guide now for more detailed information on steps that can be taken now to get ready.
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