February 24, 2025, is a momentous day for public sector procurement. It’s the day the Procurement Act 2023 finally goes live. It’s been a long build-up, which is actually great because it’s given public procurement stakeholders time to understand the changes in the new Act, and how they affect their position in the B2G market.
However, there’s always room for improvement, so we’re going to take a last look at how public sector organisations and suppliers can prepare for life after February 24.
Processes & People
The two Ps set you up for success under the new procurement regime.
Processes
These are the processes in your procurement strategy, like early engagement, supplier pre-qualification, tender publication, and supplier selection. They must all comply with the requirements in the new Procurement Act, including transparency, accountability, and data security.
Note: eTendering or eSourcing platforms like Delta eSourcing can manage transparency, accountability, and data security.
People
This includes staff, suppliers, and other stakeholders. For instance, are your employees sufficiently trained to optimise the key benefits the new Procurement Act provides? Do your suppliers know what changes to the procurement process you’ve made to align with the Act’s requirements? Have you helped stakeholders adjust their expectations?
You should answer yes to all the above questions. If not, best get to it.
Crown Commercial Service Says …
Crown Commercial Service (CCS) breaks down the contracting authorities’ preparation process into five workstreams.
Commercial activity
This includes all contracts currently underway and those in the pipeline. Review current contracts to find completion dates and renewal options. This is important because current contracts continue to operate under the Public Contracts Regulations 2015.
If renewal dates are close to the implementation of the procurement regime, it might be a good idea to wait until after February 24 so they fall under the new procurement regulations.
It makes it easier for public bodies because they’ll probably have contracts operating under both regimes concurrently. The more public contracts on the Act’s side, the less complicated and confusing contract management becomes.
Standard operating procedures and procurement policies
Under the new regime, contracting authorities must ensure that all steps in the procurement lifecycle align with the new regulations. Policies may need to be reworked to ensure they enforce compliance requirements within the department and during the procurement process.
Guidance documents and information
This includes all documentation that relates to the public sector procurement process. For example, tender documentation that details the information suppliers must provide in their bid proposals. It also includes informative procurement documents that provide additional details suppliers might need to complete the tendering process.
Systems
What are the systems that keep government departments running? Administration systems, for example. You may need to change some details or elements in the administration process to ensure compliance with the new Act’s regulations. In some cases, you may need to check automation software that manages tasks essential to the contract award process.
People
Your systems and processes can be 100% compliant with the Act’s regulations and requirements, but if people aren’t properly trained and don’t fully understand the reforms, they can’t implement the changes. Nor can they answer suppliers’ questions about the reforms, which places suppliers at risk of non-compliance and severe penalties.
Many procurement-related service providers, including Delta eSourcing, have training material for contracting authorities and suppliers. Meanwhile, the government has provided a lot of preparatory information for buyers and suppliers to figure out the new Act, including Knowledge Drops.
More on Knowledge Drops
Knowledge Drops are for anyone active in public sector procurement. There are three overarching categories
- Contracting authorities. Knowledge drops cover light touch, defence and security, concessions, schools, and utilities contracts. They also explain the differences in Wales and Northern Ireland.
- Suppliers: Those who provide services, products, or works to the UK public, utilities, and defence sectors.
- Small and medium-sized enterprises (SMEs) and VCSEs (voluntary, community, and social enterprises) – specifically the third adaptation.
Only when you fully understand the changes in the new regime and their implications can you create strategies to ensure compliance with the new regulations and optimise the inherent opportunities.
Very Important!
There is one critical change that central and local authorities must fully understand because it involves rewiring their brains to approach supplier selection from a whole new point of view.
MAT.
MAT stands for Most Advantageous Tender. It means that contracting authorities must consider the whole proposal, instead of focussing almost solely on price.
The price-first approach – MEAT (Most Economically Advantageous Tender) – is one of the biggest barriers to entry for small businesses and medium-sized enterprises trying to enter the public procurement market. SMEs simply cannot compete against larger enterprises that can provide a relatively low-cost bid.
Larger enterprises usually have several projects on the go simultaneously. These diverse revenue streams provide the financial security to keep bid prices low. Small businesses that are too small to manage multiple contracts can’t afford to drop their bid price without compromising themselves financially.
Value and flexibility
MAT removes barriers to entry because SMEs often provide greater value than larger enterprises. Their local knowledge means they understand community needs on a micro level, which is essential for social value initiatives.
SMEs tend to be more flexible, so they can adapt quickly to contract amendments or changing market conditions. They’re often more innovative than larger enterprises, which can result in time and energy savings and greater value for money. Three things the public sector loves.
Contracting authorities must consider all these benefits when awarding contracts, so you can see why a different mindset and reworked procurement documents are so important.
Tools and Resources on eSourcing Platforms
eSourcing platforms like Delta eSourcing play an increasingly important role in public procurement. They publish contract notices and often include customisable templates for contracting authorities so there’s no need to recreate procurement documents from scratch for each contract.
However, they can do much more than that.
Some platforms provide contracting authorities with a hub where they can manage every aspect of a specific contract. All stakeholders have access to the hub and all the data, including real-time information, it contains. Bidders can track the selection process, communication is enhanced, and platforms ensure the procurement process meets new transparency requirements.
Transparency and accountability are emphasised in the new Procurement Act 2023. This is partly to ensure suppliers are given equal treatment and contracts are awarded without undue favour. It’s also to assure the public that government procurement budgets are spent wisely, squeezing every penny for maximum value, and eliminating maverick spending and budget leaks.
Delta eSourcing is more than just a procurement portal.
We also provide diverse tools and features:
- Information regarding the Procurement Act 2023
- Data integration to access tender documents from your existing systems
- Delta market analytics
- eAuctions
- Cyber Essentials Certification
- Delta Engagement Zone: Resources, webinars, blog, etc.
- G-Cloud 14 Supplier
Choose Delta eSourcing to manage your public sector procurement process. Our expertise gives you more time to focus on core tasks, like streamlining customer service for increased customer satisfaction. Contact us now for more information or book a free demo to see how our services can be tailored to your needs.
