Procurement Act 2023: A New Dawn for UK Public Sector Projects

Procurement Act 2023: A New Dawn for UK Public Sector Projects. The Procurement Act 2023 goes live today. As the UK Government continues to refine its approach to public sector procurement, the Procurement Act 2023 marks a significant milestone. Set to go live today, Monday, February 24th, 2025, this legislation introduces a series of reforms. These reformas are aimed at enhancing transparency, efficiency, and inclusivity in the procurement process.

For small and medium-sized enterprises (SMEs) like Granby, this Act presents a unique opportunity to engage more effectively with public sector projects, particularly where SMEs can deliver distinct value advantages to these projects.

The pivotal role of the Cabinet Office

The Cabinet Office plays a pivotal role in public sector procurement in the UK, acting as the central coordinating body for procurement policy and strategy across government departments and for implementing The Procurement Act 2023.

It is responsible for setting the standards and guidelines that ensure procurement processes are efficient, transparent, and deliver value for money. The Cabinet Office works to streamline procurement procedures, reduce bureaucracy, and promote best practices across the public sector. It also focuses on fostering innovation and competition, particularly by encouraging the participation of small and medium-sized enterprises (SMEs) in public sector contracts.

By overseeing initiatives such as the Central Digital Platform, the Cabinet Office aims to create a more open and accessible procurement environment, ensuring that all suppliers have equal opportunities to compete for government contracts. Additionally, the Cabinet Office emphasizes the importance of social value in procurement decisions, aligning public sector spending with broader societal goals.

What are the Key Elements of the Procurement Act 2023

It is worth recapping on the key elements and changes in The Procurement Act 2023.

Simplified Procedures: The Act introduces simplified procurement procedures, reducing the administrative burden on suppliers. This is particularly beneficial for SMEs, which often lack the resources to navigate complex procurement processes.

Increased Transparency: By mandating greater transparency in procurement decisions, the Act ensures that all suppliers, regardless of size, have access to the same information. This level playing field allows SMEs to compete more effectively with larger corporations.

Focus on Social Value: The Act places a strong emphasis on social value, requiring public sector organisations to consider the social, economic, and environmental benefits of their procurement decisions. This aligns with the strengths of many SMEs, which often have deep roots in their local communities.

Encouragement of Innovation: The Act encourages innovative solutions by allowing for more flexible procurement processes. This is a boon for SMEs, which are often more agile and innovative than their larger counterparts.

New Duty on Authorities: Authorities now have a duty to consider the barriers SMEs may face, ensuring that procurement processes are more inclusive and supportive of smaller businesses.

Greater Pre-Market Engagement: The Act encourages greater pre-market engagement, fostering innovation and allowing SMEs to showcase their unique solutions before formal procurement processes begin.

Central Digital Platform: A fully integrated digital platform will support the Procurement Act 2023 requirements. This platform will combine Find a Tender (Noticing), Sign-in & Registration, and Supplier Information, making it easier for SMEs to access opportunities and engage with the public sector.

30-Day Payment Terms: The Act mandates 30-day payment terms throughout the public sector supply chain, improving cash flow for SMEs and making public sector contracts more attractive.

Reserved Contracts for SMEs: Authorities can reserve lower-value contracts for SME, local, or UK suppliers, providing more opportunities for smaller businesses to win public sector work.

Open and Transparent Regime: The Act establishes a more open and transparent public procurement regime. New procurement notices and a registration service for suppliers ensure all suppliers have equal access to information and opportunities.

Leveling the Playing Field

By incorporating these elements, the  Act not only levels the playing field for SMEs but encourages innovation and social value in public sector projects. This transformative legislation is set to redefine how public sector procurement is conducted in the UK; offering significant benefits to SMEs and the communities they serve.

The Importance of SMEs in Public Sector Procurement

SMEs bring a unique set of advantages to public sector projects, making them invaluable partners in delivering public services. Here’s why:

Nimbleness and Responsiveness: SMEs are typically more agile than larger companies. This means they can respond and turn process changes around quickly to meet changing project requirements . They can also deliver solutions in a timely manner. This responsiveness is crucial in the fast-paced environment of public sector projects.

Adaptability and Flexibility: SMEs are often more adaptable and flexible. This means they can tailor services to meet the specific needs of public sector clients. This ability to customise solutions can lead to more effective and efficient project delivery.

Local Market Expertise: Many SMEs have a strong understanding of local markets and communities. This allows them to deliver solutions that are not only effective but also culturally and contextually appropriate. This local expertise can be a significant asset in public sector projects.

Social Value: SMEs often have a strong commitment to social value, whether through local employment, community engagement, or sustainable practices. This aligns with the public sector’s increasing focus on social value in procurement decisions.

The Role of Social Value in Public Sector Procurement

Social value has become a critical consideration in public sector procurement. This reflects a broader shift towards more sustainable and equitable practices. The Procurement Act 2023 underscores the importance of social value. It requires public sector organisations to evaluate the social, economic, and environmental impacts of their procurement decisions.

For SMEs, this focus on social value presents a significant opportunity. Many SMEs are already deeply embedded in their local communities, providing jobs, supporting local economies, and engaging in sustainable practices. By highlighting these contributions, SMEs can differentiate themselves in the procurement process and demonstrate their value beyond just cost.

Granby – supporting the Public Sector

Granby is a complete brand fulfilment provider of comprehensive logistics and supply chain solutions, specialising in third-party logistics (3PL) services. As an approved supplier on several government frameworks, Granby offers a wide range of services. These include contract packing, handling and fulfilment, packaging, returns, and reverse logistics. With a strong focus on innovation, efficiency and reliability, Granby supports public sector organisations by streamlining procurement processes. We also enhance operational effectiveness, ensuring seamless service delivery across various sectors.

Integrating Social Value

Granby has long been committed to integrating social value into every facet of its operations. This is commitment has become even more significant with the introduction of the 2023 Procurement Act. As we have seen, the Act places a heightened emphasis on social value. Some tenders now weighing it at 40% of the contract score.

Working with public sector organisations

In working with public sector organisations, Granby have consistently demonstrated how social value can be woven into the fabric of service delivery. For Granby, this is not just a compliance measure. It is a core principle that aligns seamlessly with our mission to deliver meaningful impact through client projects. Granby not only meets but exceeds the social value expectations set by public sector contracts. This reinforces our role as a trusted partner in delivering public good.

Granby Advocacy for SMEs

Granby’s journey with government contracts spans many years, during which we have worked on significant projects for public sector organisations. These include the Office for National Statistics (ONS), the National Health Service (NHS), the Department for Education (DfE), and the UK Hydrographic Office (UKHO). This extensive experience has equipped us with a deep understanding of the intricacies involved in public sector procurement.

Significant Step Forward

The Procurement Act 2023 represents a significant step forward in making public sector procurement more inclusive and accessible. For SMEs, this Act offers a chance to showcase their unique strengths and deliver greater value to public sector organisations. By leveraging their nimbleness, adaptability, local expertise, and commitment to social value, SMEs can play a crucial role in delivering innovative and effective public services. As the Act goes live, SMEs across the UK should seize this opportunity to engage with public sector projects and contribute to a more dynamic and responsive public sector.