The six-month implementation period for entry into force of the new UK Procurement Act 2023 has been delayed a further four-months, with the new go-live date now being pushed back to 24 February 2025. This delay has not held up the Cabinet Office’s engagement with public sector and suppliers on the new features of the new Act, introducing the new Procurement Pathway for contracting authorities and engaging with suppliers on registering with the new Supplier Registration Service.
Cabinet statement – reasons for delay
The new National Procurement Policy Statement (NPPS) issued in May before the General Election was set to take effect on 28 October 2024, the original go-live date for the Procurement Act (the Act). The new Labour Government has postponed the implementation of the Act to allow time to produce a new NPPS. They explained that the NPPS, as it stands, does not fully align with their broader policy objectives for procurement. The Government has said that it intends to use the new legal framework to deliver greater value for money and improved social value, which is intended to “help raise standards, drive economic growth, and open up public procurement to new entrants such as small businesses and social enterprises”. To better reflect these priorities, the current administration is working on a new NPPS.
Legislating for the new date
Within days of the Government’s announcement, they made the Procurement Act 2023 (Commencement No. 3 and Transitional Saving Provisions) (Amendment) Regulations 2024/959 to amend the coming into force date of the Act (set out in the Procurement Act 2023 (Commencement No. 3 and Transitional and Saving Provisions) Regulations 2024).
There have also been changes to dates associated with the transitional provisions. Under the transitional provisions, any dynamic purchasing system or qualification system established under the current rules must come to an end four years after the new regime comes into force. The sunset date has been changed from 27 October 2028, to 23 February 2029.
Impact on suppliers/contractors and contracting authorities
In light of the delay, authorities and suppliers/contractors will have more time to consider the upcoming regime and to take measures to prepare.
For authorities, this provides a window of opportunity for additional staff training, review of internal processes and ultimately more time to ensure the transition to the new regime is as seamless as possible.
Authorities will need to keep an eye out for the new NPPS and ensure that its content is factored into the procurement strategies for planned procurements due to launch from 24 February 2025.
For procurements that had been due to launch between 28 October 2024 and 23 February 2025, authorities will be deciding whether to proceed with the procurement ahead of the new ‘go-live’ date under the current rules, or whether to delay procurement in the hope of enjoying a more simplified and flexible procedure under the new Act. Authorities who had been ready to launch under the Act on 28 October, but unable or unwilling to delay to the end of February next year, will need to review/rework the procurement documents to align to the PCR/UCR/CCR rules. For most authorities, our sense is that the short delay to implementation is welcomed.
The delay offers several benefits for suppliers/contractors, the key one being more preparation time. Suppliers to the public/utilities and defence sectors should use the additional time to educate their organisations on the changes that are coming.
What else is new?
The Procurement Pathway
On 27 September 2024, the Procurement Pathway tool was launched. Procurement Pathway is intended to bring together various procurement documents published on http://GOV.UK , for example PPNs, playbooks and standard commercial templates.
Authorities should explore the tool and standard templates for use under the Act. Templates published so far include an Assessment Summary and Direct Award Justification Report.
The Procurement Pathway can be found here: Disclaimer | Procurement Pathway (civilservice.gov.uk)
Supplier Registration Service
Suppliers should register for the new Supplier Registration Service, if they have not done so already: Supplier Registration Service (cabinetoffice.gov.uk)
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