What does the Procurement Act really mean?

The Procurement Act 2023 is positioning itself as a major reform aimed at overhauling the rather convoluted public procurement system in the UK. It seems as if the government has finally taken notice of the cries for a more straightforward and efficient process for both buying and selling within the public sector.

This Act arrives with the promise of cutting through bureaucratic red tape that has long ensnared suppliers and frustrated government departments alike. While you are likely to detect more than a little skepticism in my writing, I do try to approach this new development with measured optimism, considering the potential improvements on the horizon that may help my customers.

I'm not going to go through all the details of the Act, as there is already some excellent interpretations available, such as the Tussell Report , which I encourage you to download. Instead I'll provide my take on what the Act could mean for the stakeholders affected by its implementation.

For Suppliers: Groundbreaking Relief or Just Another Complex Layer?

Centralised Supplier Registry: The concept is theoretically a game-changer. By introducing a unified platform where suppliers can register once and bid multiple times, the government is aiming to significantly reduce the administrative burden that has historically deterred especially smaller businesses from participating in public procurement.

This could democratise access to government contracts, provided the system is user-friendly and efficiently managed. Yet, the success of UK Government IT projects is notoriously hit or miss, with the public's view of such systems at an all time low following the Royal Mail \ Fujitsu Horizon scandal.

Simplified Bidding: The Act’s ambition to make finding and applying for public contracts as straightforward as online shopping is an exciting prospect. This could potentially open up the government market to a wave of innovation and competition from startups and small businesses previously bogged down by the complexity of the process.

However, transforming this vision into reality will require meticulous attention to detail in the implementation phase to avoid introducing new complexities. How long will it take? There's a real risk that the cost of participation prices all but the traditional primes out of the marketplace.

For the Government: A Leap Towards Modernisation or a Stumble?

The vision behind the Procurement Act is not just about streamlining operations; it's about transforming the public sector into a smarter, more agile buyer. The potential for innovation, improved services, and better value for taxpayer money is substantial.

Flexibility and Innovation: By allowing for more flexible procurement procedures, the Act proposes a framework where creative solutions can flourish. This flexibility, if well-executed, could be the breath of fresh air needed to invigorate public services with modern, efficient solutions. The challenge will be to ensure this flexibility does not become a loophole for inefficiency or favoritism.

Empowering Small Businesses and Promoting Transparency: The Act’s focus on small businesses and transparency could significantly impact the competitive landscape, offering smaller players a fair shot at winning contracts. Transparency is particularly crucial for maintaining public trust and ensuring that procurement decisions are made in the best interest of the public. Effective implementation will be key to moving beyond mere lip service to these ideals.

The Road Ahead: Navigating the Promises and Pitfalls

With the introduction of the Procurement Act 2023 scheduled for Q4 of 2024, there is a window of opportunity for suppliers and government entities to prepare for the changes ahead. This preparation phase is crucial for ensuring a smooth transition to the new system.

For suppliers, this means staying abreast of the developments related to the Act and beginning to adapt their capture and bid strategies and processes accordingly. Expect some trial and error and think about which bids you want to "test" yourselves on.

For the government, it means training procurement officials, updating systems, and ensuring that the infrastructure necessary to support the Act’s provisions is in place, functional and fair.

The true test of the Procurement Act will be in the first procurements to run through the system, and whether it is designed to be able to demonstrate the benefits and savings that it is supposed to realise.

For suppliers, the hope is that this Act will open up new opportunities and make the process of securing government contracts more accessible and less expensive. For the government, the Act represents an opportunity to demonstrate efficiency, foster innovation, and achieve better value for money in public procurement.

As we look forward to the implementation of the Procurement Act 2023, it’s clear that while the Act presents a promising step forward, the journey from legislative intent to real-world impact is a major challenge.

Whilst I support that ambition of the Procurement Act 2023, we need to prepare ourselves for many bumps in the road; plan for the worst and hope for the best.

Addendum - Outline of timelines

October 2023 - Procurement Bill receives Royal Assent, becoming the Procurement Act 2023, transitioning the bill into law.

November 2023 - The government plans to release educational materials, including videos and resources, to help stakeholders understand the key changes introduced by the Act, from November 23 onwards.

March \ April 2024 - Government e-learning product launched with Skilled Practitioner Certification. This initiative aims to provide comprehensive training on the new procurement framework. You can find out more here: https://www.gov.uk/government/publications/update-on-the-official-learning-and-development-offer-for-contracting-authorities/ld-offer-update

May 2024 - Government plans to offer an in-depth learning experience through a 3-day virtual course. This "Deep Dive" aims to further prepare stakeholders for the transition to the new procurement system.

October 2024 - The Act is scheduled to go live. There may be a potentially staggered launch, with different aspects of the Act may becoming effective at different phases to ensure a smooth transition.