The UK’s Procurement Act 2023 and the subsequent Procurement Regulation 2024 represent a new era for public sector procurement. With a go-live date of 28 October 2024, these regulations aim to introduce greater flexibility, transparency, and competition in the procurement process, offering public sector organisations an opportunity to rethink how they manage contracts, suppliers, and compliance.
What Is the Procurement Act 2023?
The Procurement Act 2023 simplifies public sector procurement, reducing the rigid, prescriptive procedures that have long dominated the space. The legislation introduces a flexible competitive procedure, allowing contracting authorities more freedom to tailor their procurement processes to their specific needs. By giving public bodies greater flexibility in how they choose to source and manage contracts, the Act opens the door for more innovation and competition.
At the same time, the Act places a stronger emphasis on transparency and accountability. All procurement activities must now be recorded in a Central Digital Platform, offering real-time visibility into how public money is being spent. This enhanced transparency is designed to build trust, ensure compliance, and drive better value for money in public contracts.
Flexibility and Innovation in Public Procurement
The flexible competitive procedure is a key component of the new legislation. Public sector organisations can now modify their procurement approach to meet specific needs, making it easier to respond to market fluctuations, supplier diversity, and the changing demands of their operations.
For example, the introduction of dynamic markets and open frameworks allows contracting authorities to engage with a broader pool of suppliers, including small businesses and niche providers. This is particularly important in a world of political and economic instability, where supply chain issues and rising costs are major concerns. By streamlining procurement processes, public bodies can react faster to disruptions and ensure they are working with suppliers who can offer the best value for money.
However, with greater flexibility comes increased scrutiny. Public bodies must ensure they maintain compliance with the rules outlined in the Act, while also taking full advantage of the opportunities it presents. This will require public procurement teams to have a deep understanding of the market, be able to forecast needs, and develop strong relationships with a diverse range of suppliers.
Expanding the Procurement Lifecycle: A Cultural Shift
One of the most transformative aspects of the Procurement Act 2023 is the expansion of the procurement lifecycle. The Act now includes pre-procurement activities all the way through to contract management and termination. This extended lifecycle encourages public bodies to focus on long-term value and better planning, rather than just contract awarding.
This shift has the potential to drive a significant cultural change in the public sector. Procurement teams will no longer be seen as gatekeepers but as key business advisors, influencing strategic planning and decision-making. To meet these new demands, public sector organisations will need to invest in training and development, ensuring their procurement teams have the skills required to navigate the new regulatory landscape.
Additionally, the extended lifecycle presents challenges for organisations that currently separate procurement from contract management. The Act encourages a fully integrated commercial function, where procurement and contract management are part of a single, streamlined process. This will enable public bodies to comply with the Act’s transparency requirements and take full advantage of the flexibility it offers.
The Importance of Transparency and Risk Management
While the Procurement Act reduces some administrative burdens, it also places a greater emphasis on transparency and oversight. Contracting authorities will need to strengthen their internal controls, ensuring their procurement processes are ethical, transparent, and compliant.
To support these efforts, the Central Digital Platform will become a crucial tool. It allows public bodies to track procurement activities, monitor supplier performance, and maintain full visibility of contract management. As the platform evolves, it will also provide valuable market data, helping procurement teams make more informed decisions.
Increased flexibility also brings risks, such as fraud, corruption, and non-compliance. To mitigate these risks, public bodies must implement robust risk management frameworks that address both commercial risks and the potential for unethical behaviour. This includes ensuring compliance with the Act’s transparency obligations and adopting a risk-based approach to procurement.
How I-Tel Group Can Support Public Sector Procurement
At I-Tel Group, we understand the complexities that public sector organisations face as they transition to the new procurement regime. Our business intelligence and procurement solutions can help public bodies navigate the changing landscape, ensuring compliance, transparency, and efficiency.
We offer tailored support for:
- Supply chain and spend analysis at line-level data capture
- Efficiency and cost reduction through supply chain consolidation, automation. and innovation
- Ongoing use of data-led reporting features to identify areas of improvement.
- Real-time visibility of spend and usage across the organisation.
By partnering with I-Tel Group, public sector organisations can take full advantage of the opportunities offered by the Procurement Act 2023, while minimising risks and enhancing operational efficiency.
Are you ready for the new procurement regulations? Contact us today to learn how we can support your transition to the Procurement Act 2023 and help you unlock the full potential of your procurement function.
