GUEST COLUMN:
Liz Fletcher
Commercial Partner
Hugh James
Imagine a public procurement system that not only prioritises value for money but also actively fosters innovation, sustainability, and social value.
With the arrival of the Procurement Act 2023 (the “Act”), this vision is on the cusp of becoming reality. As contracting authorities and businesses across England and Wales have been preparing for a major overhaul in how public sector contracts are awarded, the question isn't just about compliance – it’s about seizing new opportunities in a reshaped landscape. The Act, went live on 24 February 2025 and makes promises that public procurement will become more accessible, especially for small businesses and social enterprises. But are you ready to navigate this new frontier?
A Shift Towards Business-Centric Procurement
For years, the complexity of public procurement processes has been a barrier for many businesses, especially SMEs and social enterprises. The Act aims to break down these walls. By simplifying and reducing the number of procedures and emphasising broader social benefits, the Act is not only intended to level the playing field but also encourages more businesses to throw their hats into the public sector ring and for contracting authorities to actively consider these challenges for SMEs.
This shift isn’t just bureaucratic, it’s strategic. The publication of pipeline notices gives suppliers the opportunity to track potential opportunities, giving them time to plan for future work to support a competitive market.
The Act embeds a “transparency by default” approach and contracting authorities are encouraged to factor in social value priorities reflected in the National Procurement Policy Statement and the Welsh Procurement Policy Statement. In Wales, socially responsible procurement is to be put on a statutory footing to ensure public procurement contributes to the well-being of Wales.
Embracing the Digital Transformation
The new Central Digital Platform aims to centralise procurement processes, making it easier for businesses to find and compete for contracts and to reduce the time taken to bid for opportunities. Suppliers will input and store their commonly used supplier information on the platform so that this can be used as the basic mandatory information – avoiding duplication and providing certain on the identity of suppliers through self-authentication. Suppliers will need to be registered on the platform to be ready to bid for new opportunities and there are numerous user manuals and video guides available to enable suppliers to hit the ground running now the Act is live.
Contracting authorities, on the other hand, have been racing against time to onboard and align their operations with the new platform. From updating IT systems, governance processes and procurement templates to revising evaluation criteria, the groundwork that has been laid will determine how smoothly this transition unfolds.
Turning Compliance into Competitive Advantage
Preparing for the Act isn’t just about ticking boxes, it’s about positioning your business for success. Suppliers who take the time to understand the new approach can tailor their bids to stand out in a crowded market – having a clear offering on policy driven questions that are business, not procurement specific, can speed up the process and reflect the weightings that will be given to topics such as modern slavery, payment, carbon net zero and data protection.
For contracting authorities, there’s an opportunity to become more strategic partners rather than just gatekeepers. By engaging early with suppliers and fostering open communication, contracting authorities can ensure that public contracts deliver maximum value, not just for the bottom line but for society as a whole.
Navigating Uncertainties and Embracing Opportunities
Of course, no major reform comes without its challenges. Questions still linger around elements such as whether the Central Digital Platform has gone far enough. The Friday before the Act went live, the former Contract Finder site was inundated with contracting authorities publishing the last opportunities to be governed by the old rules, with some being published at 17:29 just one minute before the old platform closed for publications to avoid falling within the new regime. However, uncertainty does not delay the inevitable and now the Act is here the need to be prepared is more essential than ever.
The Cabinet Office has been proactive in offering resources, from Community Practice events to comprehensive guides tailored for both suppliers and contracting authorities. Engaging with these resources now can make the difference between scrambling at the last minute and stepping confidently into the new procurement era.
The Bigger Picture: Building a More Inclusive Market
At its core, the Act isn’t just about procedures, it’s about purpose. By emphasising transparency, social value, and broader public benefits, the Act aims to ensure that public spending delivers meaningful outcomes.
For businesses, this means an unprecedented opportunity to align their offerings with public sector goals. Whether it’s a tech start-up focused on sustainable solutions or a social enterprise addressing community challenges, the new procurement landscape is designed to reward innovation and impact.
Conclusion
As 24 February 2025 has passed and the Act is live, now is the time for proactive planning and decisive action. The Act offers a unique opportunity for businesses and contracting authorities alike to rethink how public contracts are awarded and delivered. Those who prepare and embrace both the challenges and the opportunities, will be best positioned to thrive in this new era.
So, what’s your next move? Will you be a passive observer of this transformation, or will you step forward, ready to leverage the opportunities and drive meaningful change?
At Hugh James, we’re here to help you navigate this shift. Whether you’re a supplier looking to refine your strategy or a contracting authority needing to update and streamline your processes, our team is ready to support you every step of the way.
