The Procurement Act 2023: Secondary Legislation Update and Key Guidance Highlights

The Procurement Act 2023 continues its journey towards transforming public procurement in the UK. With the Consequential and Other Amendments Regulations 2025 now laid in Parliament as of Monday, 9 December, the stage is set for the much anticipated go live in February 2025. These regulations address the necessary technical updates to ensure a seamless transition from existing procurement rules to the new framework, providing the legal clarity needed for the upcoming changes.

To support stakeholders in navigating this shift, the government has released additional guidance documents and templates that are instrumental for contracting authorities and procurement professionals alike. Below, we delve into the key highlights of these resources.

Covered Procurement Objectives

The newly published guidance on Covered Procurement Objectives provides a clear framework for contracting authorities to align their procurement activities with the overarching goals of the Procurement Act 2023. Found in the Plan section of the official PA2023 guidance pages, this document outlines several critical principles:

1. Transparency: Contracting authorities must ensure that procurement processes are open and transparent at every stage. This includes clear communication of objectives, requirements, and evaluation criteria, enabling fair competition and accountability.
2. Value for Money: A strong emphasis is placed on achieving the best possible outcomes for public spending. This involves balancing cost with quality and ensuring that procurement decisions align with the broader goals of efficiency and effectiveness.
3. Fair Treatment of Suppliers: The guidance reinforces the importance of fair and equitable treatment of suppliers. This means eliminating unnecessary barriers to participation, fostering diversity in supply chains, and encouraging engagement from small and medium sized enterprises (SMEs).
4. Sustainability and Innovation: The objectives highlight the need to consider environmental and social impacts in procurement decisions. Authorities are encouraged to promote sustainability, support innovation, and align procurement practices with the UK’s net zero objectives.

This guidance is an essential tool for contracting authorities to ensure their procurement strategies are not only compliant with the new regulations but also aligned with best practices.

Access the Covered Procurement Objectives guidance here.

Competitive Flexible Procedure Guidance and Templates

The introduction of the Competitive Flexible Procedure represents one of the most notable changes under the Procurement Act 2023. Designed to offer contracting authorities greater flexibility while maintaining fairness and transparency, this new procedure replaces more rigid procurement approaches with adaptable frameworks tailored to specific needs.

Key elements of the guidance and templates include:

1. Streamlined Process Design: Contracting authorities now have more freedom to design procurement processes that best suit their objectives, provided they adhere to the core principles of fairness, transparency, and proportionality. This flexibility allows for innovative approaches that can save time and reduce administrative burdens.
2. Template Documents: To support the adoption of the Competitive Flexible Procedure, the government has provided templates available through the Procurement Pathway tool. These templates include standardised documents for invitations to tender, evaluation criteria, and contract award notifications, ensuring consistency and ease of use.
3. Supplier Engagement: The guidance encourages early and meaningful engagement with suppliers to improve market understanding and foster collaboration. This proactive approach can help contracting authorities refine their requirements and attract a diverse range of bids.
4. Focus on Outcomes: By shifting the emphasis from prescriptive processes to desired outcomes, this procedure supports innovation and allows suppliers to propose creative solutions that meet procurement objectives effectively.

Download the Competitive Flexible Procedure templates and guidance here.

Looking Ahead: Preparing for February 2025

The go live of the Procurement Act 2023 in February 2025 represents a pivotal moment for public procurement. By simplifying and modernising procurement processes, the Act aims to enhance efficiency, transparency, and value for money. However, the transition will require careful preparation:

• Familiarise Yourself with the Guidance: Contracting authorities and procurement professionals should thoroughly review the newly published resources to ensure compliance and effective implementation.
• Engage with Stakeholders: Early engagement with suppliers, internal teams, and other stakeholders will be crucial to address potential challenges and opportunities.
• Leverage Training and Support: Make use of available training sessions, tools, and expert support to build confidence and readiness for the new framework.

The release of the secondary legislation and these detailed guidance documents underscores the government’s commitment to equipping stakeholders with the tools needed for a successful transition. By embracing these resources and preparing proactively, contracting authorities can unlock the full potential of the Procurement Act 2023 and drive meaningful change in public procurement practices.

What are your thoughts on the changes introduced by the Procurement Act 2023? How do you see the new framework impacting your organisation’s procurement strategies? Let’s discuss!