Why does it matter?
The Procurement Act represents the most significant reform to UK public procurement in a generation. It affects every organisation that bids for, delivers, or manages public sector contracts. The Act introduces new procedures, new transparency requirements, new exclusion grounds, and strengthened contract management provisions. For suppliers, it changes how tenders are structured, how bids are evaluated, and how contract performance is monitored. Understanding the Act is essential for any organisation working with the UK public sector.
Key details
A single, flexible procedure
One of the most significant changes is the replacement of the previous multiple procurement procedures (open, restricted, competitive dialogue, competitive procedure with negotiation, innovation partnership) with a single, flexible procedure that contracting authorities can adapt to the specific needs of each procurement. This is intended to simplify the process for both buyers and suppliers while allowing more tailored approaches to complex contracts.
The National Procurement Policy Statement
The Act requires contracting authorities to have regard to the National Procurement Policy Statement (NPPS), which sets out the government's strategic priorities for procurement. A new NPPS was published in February 2025, aligned to the current government's five missions, and places significant emphasis on delivering value for money, economic growth, and social value through procurement.
Strengthened transparency
The Act creates enhanced transparency requirements, including a new central digital platform for publishing procurement notices. Contracting authorities must publish more information at every stage of the procurement lifecycle, from pipeline planning through to contract performance. This is intended to level the playing field for smaller suppliers by providing better visibility of upcoming opportunities.
Social value under the Act
Social value remains a central consideration under the Procurement Act 2023. The NPPS explicitly references social value delivery, and PPN 002 (the updated Social Value Model) has been designed to work within the Act's framework. The Act also introduces a duty for contracting authorities to consider dividing contracts into lots, which is intended to improve access for SMEs and social enterprises.
Contract management and KPIs
The Act significantly strengthens contract management provisions. For contracts above £5 million (with certain exceptions), contracting authorities must set KPIs and monitor supplier performance against them. This is a major change, and it extends to social value commitments made during the bid process, which must now be contractually embedded and tracked.
Exclusion and debarment
The Act introduces a new exclusion and debarment regime. Grounds for mandatory and discretionary exclusion include serious offences such as fraud, modern slavery, and environmental misconduct. A new debarment register will list suppliers excluded from public procurement, creating a centrally managed list for the first time.
UK & public sector context
The Procurement Act 2023 applies to all contracting authorities in England, Wales, and Northern Ireland. Scotland has its own procurement legislation and is not covered by the Act. Healthcare services are also excluded, falling under the Provider Selection Regime introduced in January 2024.
For suppliers, the Act creates both opportunities and obligations. The emphasis on transparency, flexibility, and SME access should open up new opportunities, particularly for smaller organisations. The strengthened contract management and exclusion provisions, however, mean that suppliers must be more rigorous than ever in delivering on their commitments (including social value) and maintaining high standards of conduct and compliance.
Procurements commenced before 24 February 2025 continue under the previous regulations and will run to completion under those rules.