The
new Procurement Act will benefit suppliers of all sizes, particularly
start-ups, scale-ups, and small businesses. It will create a central digital
platform for suppliers to register and store their details for multiple bids
and see all opportunities in one place. Simplified bidding processes will make
it easier to bid, negotiate, and work in partnership with the public sector.
Commercial
frameworks will be more flexible, preventing prospective suppliers from being
shut out for long periods. The Act will remove bureaucratic barriers and level
the playing field for smaller businesses so they can compete for more
contracts.
More
businesses in public sector supply chains will be paid promptly, and a more
robust exclusions framework will take stricter action on underperforming
suppliers. These changes will drive innovation, deliver better outcomes, and
embed transparency through the commercial lifecycle so everyone can access
procurement data and see how money is spent.
The
UK government has worked closely with businesses on the reforms, and industry
leaders are very supportive. They're pleased the new system will be more
straightforward and help suppliers work more collaboratively with procurers to
reduce costs and deliver the services the public wants in the way they want
them.
Small
and medium-sized businesses welcome the changes, too. They know procurers will
have to consider the barriers facing smaller businesses and that obstacles will
be removed around providing accounts and insurance at the bidding stage.
The
new regime is expected to go live in October 2024, with at least six months'
advance notice. The existing rules will continue to apply to contracts already
in progress so that the changes will take time.
While
the Procurement Act doesn't directly bind suppliers, it will improve their
business with the public and utility sectors. So, make sure you understand what
it means for suppliers. It's not just about changing the rule book. Broader
cultural and behavioural change is required to make the most significant
difference.
A
copy of the latest version of the legislation can be downloaded from the
following link: The Procurement
Act 2023.
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