What is the Procurement Act 2023 and how does it affect you?

The Procurement Act 2023 is a landmark piece of UK legislation that replaces the previous EU-derived procurement rules with a single, simplified framework governing how public bodies buy goods, services, and works. It applies to contracting authorities across central government, local authorities, NHS organisations, and other public sector bodies in England, Wales, and Northern Ireland. This article unpacks the most important questions surrounding the Act, from who it affects to how organisations should prepare for compliance.

What does the Procurement Act 2023 actually change?

The Procurement Act 2023 replaces the previous patchwork of EU-derived regulations, including the Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016, and the Concession Contracts Regulations 2016, with a single, consolidated legislative framework. The goal is to make public procurement simpler, more transparent, and better aligned with the UK’s post-Brexit priorities.

In practical terms, the Act introduces several significant shifts. It replaces the rigid, procedure-driven approach of the old rules with a more flexible system that gives contracting authorities greater discretion in how they design and run competitive processes. The old restricted and open procedures have been replaced by a smaller set of named procedures, including a new Competitive Flexible Procedure that allows organisations to tailor their procurement process to the complexity and nature of the contract.

The Act also places a much stronger emphasis on value for money over the lifetime of a contract, rather than focusing narrowly on the lowest price at the point of award. Contracting authorities are now expected to consider broader social value, supplier performance, and the long-term outcomes of their purchasing decisions. This shift reflects a wider policy ambition to use public spending as a lever for economic and social good.

Who does the Procurement Act 2023 apply to?

The Procurement Act 2023 applies to contracting authorities in England, Wales, and Northern Ireland. This includes central government departments, local authorities, NHS trusts and integrated care boards, schools and further education colleges, housing associations classified as public bodies, and a wide range of other publicly funded organisations. Scotland operates its own procurement legislation and is not covered by this Act.

The Act also extends to utilities and concession contracts, which were previously governed by separate regulations. Defence procurement remains subject to its own regime under the Defence and Security Public Contracts Regulations, though some provisions of the new Act may interact with defence purchasing in specific circumstances.

For private sector suppliers, the Act does not directly apply in the same way, but it profoundly affects how they must engage with public sector buyers. Any organisation seeking to win public contracts needs to understand the new rules, because contracting authorities will be running their procurements under this framework. Understanding the Act is therefore essential for suppliers as well as buyers.

When did the Procurement Act 2023 come into force?

The Procurement Act 2023 received Royal Assent in October 2023, but it did not come into immediate effect. After a period of transition and preparation, the Act came into force on 24 February 2025. From that date, all new procurements above the relevant thresholds must be run in accordance with the new legislation. Contracts already in progress under the old rules were permitted to continue under the previous framework.

The government provided a substantial transition period to allow contracting authorities and suppliers to familiarise themselves with the new rules, update their internal processes, and access training and guidance. In 2026, organisations are now operating fully within the new regime, and compliance is no longer optional or transitional; it is the baseline expectation for all in-scope procurement activity.

How does the new Act affect suppliers bidding for public contracts?

For suppliers, the Procurement Act 2023 introduces both new opportunities and new obligations. The most significant change for suppliers is the introduction of a centralised supplier registration system, which replaces the fragmented approach of completing separate pre-qualification questionnaires for every contracting authority. Suppliers can now register their details once and use that registration across multiple procurement exercises, reducing administrative burden.

The Act also strengthens protections for suppliers during the procurement process. Contracting authorities are required to provide more detailed feedback to unsuccessful bidders, and the new debrief rights give suppliers a clearer basis for understanding why they did not win. There is also a new preliminary market engagement process that is more formally recognised, giving suppliers the opportunity to shape requirements before a formal tender is launched.

On the other side, the Act introduces stricter rules around exclusion. Suppliers can be excluded from public contracts on a wider range of grounds, including poor past performance, and a new debarment list will be maintained centrally. This means that suppliers with a track record of underdelivering on public contracts face a more significant consequence than under the previous rules.

What are the new transparency requirements under the Act?

Transparency is one of the central pillars of the Procurement Act 2023. The Act introduces a comprehensive set of notices that contracting authorities must publish at each stage of the procurement process, from early planning through to contract award and beyond. This creates a continuous, publicly visible record of how public money is being spent.

Key transparency requirements include:

• Pipeline notices: Larger contracting authorities must publish advance notice of their planned procurement activity, giving suppliers earlier sight of upcoming opportunities.
• Tender notices: Formal notices must be published when a competition is launched, setting out the scope, requirements, and evaluation criteria.
• Contract award notices: When a contract is awarded, a notice must be published explaining who won and why, including the scores achieved by bidders.
• Contract details notices: The actual contract, or a summary of its key terms, must be made publicly available after award.
• Contract change notices: Significant modifications to contracts during their lifetime must also be published, reducing the scope for opaque variations.

All of these notices are published through a new central digital platform, making it easier for suppliers, civil society, and the public to scrutinise how contracting authorities are spending public funds. For running compliant tenders, this level of transparency demands careful process management and documentation at every stage.

How should public sector organisations prepare for compliance?

Public sector organisations operating under the Procurement Act 2023 need to embed the new requirements into their day-to-day procurement operations. Since the Act has been in force since February 2025, the focus in 2026 is on consistent, confident compliance rather than initial preparation. However, many organisations are still working through the practical implications of the new framework.

The most important areas to address include:

• Process redesign: Procurement procedures built around the old regulations need to be updated to reflect the new named procedures, particularly the Competitive Flexible Procedure.
• Template and documentation updates: Standard tender documents, evaluation frameworks, and contract templates should all be reviewed to ensure they align with the new requirements.
• Training and capability building: Procurement teams need to understand not just the letter of the new law but its underlying intent, particularly around transparency, value for money, and supplier management.
• Supplier relationship management: The Act’s focus on performance and the possibility of debarment means that managing supplier relationships actively throughout the contract lifecycle is now more important than ever.
• Notice management: Organisations need clear internal processes for publishing the required notices at the right time, through the correct channels, to avoid compliance failures.

For organisations that lack in-house capacity or expertise to manage these changes, procurement resourcing support can provide the specialist knowledge needed to bridge the gap without a permanent hire.

How eXceeding helps with Procurement Act 2023 compliance

eXceeding supports public sector organisations in navigating the requirements of the Procurement Act 2023 with practical, hands-on expertise. Whether your organisation needs help redesigning procurement processes, running compliant tenders under the new framework, or building internal capability, eXceeding’s consultants work alongside your team to deliver results.

• End-to-end tender management that meets the Act’s transparency and procedural requirements
• Process and documentation reviews to identify and close compliance gaps
• Interim procurement professionals placed quickly to support capacity-stretched teams
• Supplier relationship management support to meet the Act’s performance expectations
• Independent advice, with no ties to any supplier, system, or framework

If your organisation is working through the implications of the new procurement legislation, get in touch with eXceeding to find out how our team can help you buy better, stay compliant, and deliver genuine value for your stakeholders.

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