Navigating the Procurement Act 2023: What Businesses Need to Know

Over the last few months, I did some digging into the new Procurement Act 2023, a piece of legislation designed to modernise the public procurement system which is set to come into effect this month (February 24, 2025).?

Here at Stoneseed, we are regularly engaged in Public Sector projects with Councils, Charities, Universities, and Public Sector Bodies in need of access to a contingent workforce or resources. Often, this involves working with procurement teams and HR departments directly, via Private procurement frameworks or through Government procurement frameworks such as those offered by the Crown Commercial Service.

So, I thought it might be useful to share what I’ve learnt, in layman’s terms….

Navigating the Procurement Act 2023: What Businesses Need to Know:

If you're involved in procurement, you've probably heard about the Procurement Act 2023. It’s a game-changer in how public sector contracts are awarded, managed, and modified. Let's break it down in plain English.

The Big Picture

The UK government is shaking things up with a more transparent, flexible, and fair procurement system. The goal? To make sure taxpayer money is spent wisely and that businesses—big and small—get a fair shot at contracts. Key areas of change include conflict of interest management, new procurement processes, a digital platform, and tighter rules on contract modifications.

What’s Changing?

1. Handling Conflicts of Interest

Think of this as the ‘no dodgy dealings’ rule. The Act now requires that conflicts of interest (actual, potential, or perceived) be recorded and mitigated throughout the procurement process. Whether it's a personal connection or a financial interest, the government wants it on the record. For businesses, this means greater transparency—but also more due diligence in identifying and managing conflicts.

2. More Flexible Procurement (CFP)

Gone are the days of rigid procurement processes! The new Competitive Flexible Procedure (CFP) allows multiple evaluation stages, such as presentations and negotiations. This is great news for procurement departments and businesses, as it creates opportunities to showcase value beyond just submitting a bid.

3. Central Digital Platform (CDP)

The government is centralising supplier registrations, meaning businesses will now need to create profiles and submit core information via the new CDP. While this adds an extra step, it simplifies the process in the long run—once your info is in, it can be shared with buyers using a ‘use-once’ code rather than submitting the same paperwork repeatedly.

4. New Exclusion Rules

Corporate wrongdoings? Encourages businesses to think twice before bidding. The Act expands exclusion criteria to include corporate manslaughter, cartel offences, and criminal activities—even if committed outside the UK. Plus, even ongoing investigations could be enough to disqualify a supplier. The takeaway? This change will help keep suppliers clean, compliant, and transparent.

5. Stricter Rules on Contract Modifications

As a supplier, if you win a contract, don’t assume you can make big changes later. Any post-award modifications must be formally documented with a Contract Change Notice. Modifications are categorised as:

• Below-threshold: Minor changes (e.g., up to 10% increase in value for goods/services or 15% for works).
• Above-threshold: Bigger changes (up to 50% per modification), but they must be clearly justified and cannot fundamentally alter the contract.

6. Labour Party Policy Impact

Procurement policies may lean more towards UK-based suppliers, fair payment terms, and trade union recognition. This could mean more opportunities for local businesses but also tighter compliance with employment and supply chain regulations.

7. How we at Stoneseed can help?you via our Project Management as a Service (PMaaS) and Framework Procurement

Stoneseed’s Project Management as a Service (PMaaS) provides a flexible and cost-effective way to procure IT project management expertise. Through established procurement frameworks, businesses can access experienced project managers, business analysts, and PMO specialists without the long-term commitment of permanent hires or the high costs of contractors. Our approach aligns well with the Procurement Act’s emphasis on transparency, accountability, and flexibility—making it easier for businesses to scale their IT project needs in a compliant and efficient manner. Learn more here. We are currently listed as an approved supplier on the G-Cloud 14 Frameworks under Specialist Cloud Services.

If you are looking for IT Project Management services or a contingent workforce talk to Stoneseed, and we can help you navigate the procurement process.

Final Thoughts

The Procurement Act 2023 is all about fairness, efficiency, and accountability. While it means some extra admin work, it also creates new opportunities. Get familiar with the changes and take full advantage of this new procurement landscape!

Visit the website to find out more about our project management services > https://www.stoneseed.co.uk/project-management-as-a-service/

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