Public sector procurement: Key changes and compliance essentials

To enhance transparency and efficiency in public sector procurement, the UK government has issued new regulations with the Procurement Act 2023 and the accompanying Procurement Regulations 2024

These changes, while building on the foundations laid by the Public Contracts Regulations 2015 (PCR 2015), introduce several updates crucial for contracting authorities across England and Wales.

What do the new regulations entail?

The Procurement Regulations 2024, effective from their ‘go live’ date, mandate that all new procurement agreements adhere strictly to the updated guidelines. These regulations emphasise fairness, transparency, and non-discrimination, ensuring that all suppliers have equal opportunities to participate. They aim to streamline processes while minimising administrative burdens for both authorities and suppliers.

Key principles of compliance

Under the previous PCR 2015 and continuing with the new regulations:

• Equal treatment and transparency: Suppliers must be treated fairly without discrimination, and all procurement activities must be conducted transparently. Clear information is crucial to foster trust and accountability.
• Promotion of competition: To prevent anti-competitive behavior, the regulations encourage diverse supplier participation, enhancing competition which in turn drives value for money.
• Proportionality: Procurement procedures should align with the complexity and value of the contract, ensuring that processes are neither overly burdensome nor insufficiently detailed.
• Publication of notices: Contracting authorities are required to publish notices on the Find a Tender Service (FTS), inviting suppliers to participate in procurements exceeding certain thresholds. This platform replaces the previous Official Journal of the EU (OJEU/TED) for UK procurements.

Why compliance matters

Compliance with these regulations is crucial for contracting authorities to avoid legal challenges, financial penalties, and repetitional damage. By adhering to the prescribed procedures, authorities not only mitigate risks but also contribute to the delivery of high-quality public services effectively.

Challenges and Solutions

While the regulations aim to standardise and simplify procurement processes, challenges remain. These may include understanding the complexities of the regulations, resource limitations, and the need for technical expertise within procurement teams. Utilising frameworks such as the Crown Commercial Service (CCS) can streamline the process by providing standardised contract terms and expert guidance tailored for public sector needs.

Looking ahead

With the Procurement Regulations 2024 set to become operational, contracting authorities must prepare to implement these changes effectively. Ongoing training and robust procurement strategies will be essential to navigate the evolving landscape of public sector procurement.

The shift from PCR 2015 to the new regulations marks a significant step towards modernising public sector procurement in the UK. By embracing these changes, contracting authorities can uphold principles of fairness, transparency, and competition, ultimately delivering better outcomes for taxpayers and communities.