Previously public procurement legislation in the UK was derived from EU directives and consisted of four separate sets of regulations:
- The Public Contracts Regulations 2015,
- The Utilities Contracts Regulations 2016,
- The Defence and Security Public Contracts Regulations 2011,
- The Concession Contracts Regulations 2016.
From 24th February 2025, The Procurement Act 2023 and the Procurement Regulations 2024 will replace the existing Regulations and will become effective from this date.
Why are the frameworks for procurement changing?
These laws and regulations are critical for ensuring that public procurement processes are conducted fairly, efficiently, and transparently, with the overarching goal of safeguarding public resources. They also aim to align procurement practices with international standards and best practices.
The Public Procurement Act 2023 and the forthcoming Procurement Regulations 2024 are key legal frameworks aimed at reforming and modernising the procurement processes within the public sector in the UK including its Devolved Administrations.
Below is a general overview of what these laws and regulations and implications for suppliers and buyers in the public and utilities sector.
About the Public Procurement Act 2023
The Public Procurement Act 2023 is a legislative framework that governs how public procurement is conducted. While the specific provisions can vary depending on the country / Devolved Administration, some of the common objectives and features include:
- Transparency and Accountability:
- Establishes clear procedures and guidelines for public procurement to ensure transparency in the use of public funds.
- Mandates the publication of procurement opportunities and outcomes to promote openness.
- Efficiency and Value for Money:
- Aims to ensure that public procurement processes deliver the best possible value for money.
- Encourages competition among suppliers to secure quality goods and services at reasonable prices.
- Anti-Corruption Measures:
- Implements strict rules to prevent corruption, favouritism, and conflicts of interest in the procurement process.
- Introduces penalties for violations of procurement rules.
- Sustainability and Innovation:
- Promotes sustainable procurement practices, including the consideration of environmental and social factors in procurement decisions.
- Encourages the adoption of innovative solutions and technologies in public procurement.
- Capacity Building and Professionalisation:
- Focuses on enhancing the skills and competencies of procurement professionals within the public sector.
- Establishes standards and certifications for procurement officials.
- Appeals and Dispute Resolution:
- Provides mechanisms for suppliers to appeal against unfair procurement decisions.
- Sets up bodies or tribunals to handle disputes arising from procurement processes.
About the Procurement Regulations 2024
The Procurement Regulations 2024 are detailed rules and procedures that operationalise the provisions of the Public Procurement Act 2023. These regulations provide more specific guidance on how the principles and requirements of the Act should be implemented.
Key elements include:
- Detailed Procurement Procedures:
- Provides specific guidelines on different types of procurement methods (e.g: open tender, restricted tender, direct procurement).
- Includes steps for procurement planning, tendering, contract award, and contract management.
- Thresholds and Approvals:
- Defines the monetary thresholds for different procurement methods and the required levels of approval within government entities.
- Sets out criteria for when exceptions or deviations from standard procedures may be allowed.
- Supplier Registration and Qualification:
- Details the process for registering and pre-qualifying suppliers for government contracts.
- Specifies the criteria for evaluating suppliers’ bids, including technical and financial qualifications.
- Contract Terms and Conditions:
- Standardises the terms and conditions that must be included in public contracts.
- Includes provisions related to performance security, delivery schedules, payment terms, and dispute resolution.
- Monitoring and Compliance:
- Establishes mechanisms for monitoring the compliance of procurement activities with the law and regulations.
- Outlines the roles and responsibilities of oversight bodies, such as procurement authorities or audit agencies.
- Implementation Timeline and Transitional Provisions:
- Provides timelines for the full implementation of the new regulations.
- Includes transitional provisions to allow for a smooth shift from old to new procurement rules
Implications for Public & Utility Sectors Buyers
Following Publication of the Procurement Regulations 2024 earlier in 2024, there has been much activity in terms of knowledge sharing, training and systems development, as well as modification to accommodate the requirements of the new Regulations.
If your business buys goods, works or services to organisations in the public and utility sectors or wishes to do so, you will need to know about the changes.
Implications for Suppliers to The Public / Utilities Sector
The new Procurement Act will benefit suppliers of all sizes, particularly start-ups small businesses and business wishing to upscale.
How can FPA Consulting Assist?
FPA Consulting has focused itself on fully understanding the new regulations and procurement process requirements, to ensure that both its current and future Public and Utilities sector Clients have a smooth and uninterrupted transition between the two sets of Regulations, mitigating risk, cost and challenge.
As a supplier to the Public or Utilities Sectors , we can assist and guide you through these new regulations to support you to retain existing Public and Utilities Sector or contracts. In doing so, your company will also be well prepared to win new contracts in the future. For further advice please get in touch.
