As a valued supplier to the public sector, particularly within the education sector, we want to ensure you are fully informed about significant legislative changes affecting public procurement. The UK government, following an extensive legislative process and the country’s departure from the EU, has introduced the Procurement Act 2023, which received royal assent in late 2023. This Act paves the way for the new Public Procurement Regulations 2024, set to come into force on 28 October 2024, replacing the existing Public Contracts Regulations 2015.
This critical legislation introduces a series of new processes, obligations, and opportunities in the way public sector goods and services are procured. Key highlights include:
- Simplified and Flexible System: The new regulations aim to simplify procurement, allowing the public sector to undertake competitive procurement processes while ensuring compliance with international obligations.
- Enhanced Opportunities for SMEs and New Entrants: The regulations create more opportunities for SMEs, new market entrants, and social enterprises to compete and secure public sector contracts.
- Increased Transparency: Enhanced transparency throughout the procurement lifecycle will ensure proper scrutiny of how taxpayers’ money is being spent.
- Tougher Measures on Supplier Performance: A more rigorous framework will enable contracting authorities to take stronger action against underperforming suppliers and exclude those posing unacceptable risks.
Action Required: Preparing for the New Procurement Regulations
We want to inform all our suppliers across both 2buy2 and our education-focused platform, Education Buying, about important upcoming changes. We strongly recommend that you begin preparing for these changes now. The new regulations, which take effect in October 2024, will apply to any new frameworks or dynamic purchasing systems (DPS) that Education Buying re-procures or initiates after this date. Rest assured, existing frameworks and DPSs will continue to operate under the current Public Contracts Regulations 2015, ensuring uninterrupted continuity for ongoing contracts.
To support your transition to the new procurement environment, here are some key features of the upcoming regulations:
- Supplier Registration Service: From October 2024, you will be required to register with the central digital platform for suppliers, the government’s ‘Supplier Registration Service’. This service will allow you to store your details for multiple bids and access tender opportunities in one place. The information you upload here will generally be the same as what you typically provide in ‘supplier questionnaires’ or ‘pre-qualification questionnaires.’ This registration will be essential for bidding on any new public procurement opportunities starting from the end of October 2024. We strongly recommend reviewing these requirements now and beginning your registration process well before October 2024.
- Competitive Flexible Procedure: A new, simplified bidding process will make it easier for suppliers to engage, negotiate, and collaborate with public sector bodies.
- Framework Re-openings: Framework agreements will periodically reopen for new suppliers, ensuring continued access to opportunities even after initial awards.
- National Procurement Policy Compliance: Contracting authorities will have a duty to ensure procurement aligns with national priorities, including job creation, climate change mitigation, and supplier diversity.
- Prompt Payment Provisions: Strengthened payment terms will ensure SMEs benefit from 30-day payment terms across a wider range of public sector contracts.
- Stronger Exclusions Framework: A stronger exclusions framework will take tougher action on underperforming suppliers
- Increased Data Transparency: Authorities will be required to publish detailed information on upcoming procurement opportunities, current contract performance, and expiring contracts.
- Procurement Review Unit: A new unit will be established to allow suppliers to raise concerns about procurement processes.
Support materials
These changes are designed to foster innovation, improve outcomes, and ensure transparency throughout the procurement cycle. The Government Commercial Function offers additional support and training for suppliers, including ‘knowledge drop’ videos and a short guide tailored for suppliers. More resources will be available closer to the October 2024 go-live date.
Next Steps for Suppliers
To ensure you are fully prepared for these changes, we recommend the following actions:
- Familiarise Yourself with the Act: Review the Transforming Public Procurement webpages for comprehensive details on the new regulations.
- Monitor Procurement Notices: Stay informed about upcoming procurement opportunities by regularly checking for notices, which will be published from October 2024 onwards.
- Update Your Portal Registrations: Ensure your details are current on platforms like Delta e-Tendering and other public sector tendering portals.
- Engage with Supplier Knowledge Drops: These resources will help you better understand the implications of the new Procurement Act.
- Register on the Supplier Registration Service: Complete your registration on the new platform as soon as it becomes available to ensure your readiness for future tender opportunities.
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By taking these steps, you can position your business to take full advantage of the opportunities presented by the new Procurement Act and the 2024 regulations. We’re here to support you through this transition—please don’t hesitate to reach out with any questions or for further guidance.
