Nicola’s Blog – the new Procurement Act

Understanding the New Procurement Act 2023: Key Changes and Implications for social care providers in Surrey

I’ve had a few enquiries about the potential impact of the Procurement Act 2023, which came into force on 24^th February so I thought I’d write a blog to share with you all about what it means in practical terms when doing future business with local authorities.

The procurement landscape in the UK has undergone significant transformation with the introduction of the Procurement Act 2023, which replaced the previous Public Contracts Regulations 2015. The new act aims to modernise the procurement process, making it more transparent, efficient, and accessible, while promoting innovation and sustainability. But what exactly does this mean for social care providers in Surrey? Here’s a breakdown of the key elements of the Procurement Act 2023 and how it could affect you.

A Simplified and Flexible Procurement Process

One of the core goals of the Procurement Act 2023 is to streamline procurement processes and reduce the bureaucracy that previously slowed down public procurement. This is particularly important for businesses seeking to engage in public contracts, as the simplified rules are expected to reduce delays and make the system more agile.  This should have a beneficial impact particularly on smaller businesses that can be daunted by the large scale processes often involved in Council procurement.

Key features of the simplified process include:

• Fewer procurement procedures: The act consolidates various procurement procedures into just three—open, selective, and competitive procedures with negotiation. This reduces complexity and is there to make it easier for businesses to understand and participate.
• Greater flexibility: The new act allows contracting authorities to introduce more flexibility when tailoring procurement procedures to specific circumstances, which can speed up the decision-making process

A greater focus on Social Value and Sustainability

Sustainability has become an increasingly important consideration in the procurement process. The Procurement Act 2023 strengthens the role of social value in the decision-making process by requiring contracting authorities to evaluate how bids contribute to social, environmental, and economic goals.  For social care providers this should be a positive thing, because often they are already delivering social value activities and impacting positively on their local community, and delivering their services in a sustainable and ethical manner.

Increased Transparency and Accountability

Transparency in public procurement is essential to ensure fairness, reduce the risk of corruption, and improve trust in public sector contracting. The Procurement Act 2023 introduces several measures designed to improve transparency, including:

• Enhanced transparency in decision-making: The act requires contracting authorities to publish detailed contract award information, including how decisions were made and the criteria used to select winning bids.
• Clearer rules on exclusion: The act sets out clearer rules on when suppliers can be excluded from bidding, This ensures that only ethical businesses can participate in government contracts.
• Supporting Innovation and SMEs: The Procurement Act 2023 is designed to encourage innovation.  One way the act does this is by giving contracting authorities the ability to procure through innovation partnerships, allowing for more flexible and experimental approaches to fulfilling public sector requirements.

Additionally, the new regulations make it easier for small and medium-sized enterprises (SMEs) to compete for local authority contracts. By lowering financial thresholds and offering greater clarity around tendering processes, SMEs are better positioned to win contracts that were previously dominated by big business.

Supplier Relationships

The Procurement Act 2023 promotes a more collaborative approach between contracting authorities and suppliers. Rather than focusing solely on transactional relationships, the new law encourages long-term partnerships where providers and local authorities work together on shared goals, such as improving efficiency, driving innovation, and ensuring sustainability.

This shift towards a more cooperative model is beneficial for social care providers, as it fosters trust and creates a stronger foundation for delivering successful projects. We will also benefit from clearer terms and conditions, which should reduce the potential for contractual disputes in the future.

Risk Management and Integrity

The act includes provisions aimed at ensuring better risk management, especially regarding financial stability, supply chain integrity, and compliance with regulations. Businesses participating in procurement will be required to demonstrate their financial health and capability to deliver contracts on time and to agreed quality standards.

The new Act introduces measures to protect the integrity of the procurement process. For example, the local authority is required to have processes in place to detect and prevent fraud or misconduct during the tendering and contract award stages.

Digital Transformation and Technology Integration

There is also an increased focus on digital innovation. The act encourages the use of technology to enhance procurement practices, streamline processes, and ultimately to provide better services to Surrey citizens. This includes the development of national digital platforms that improve access to procurement opportunities and allow for easier monitoring of contract performance.  Unfortunately this doesn’t mean an end to Proactis on a local level though, rather that it must interface with the national system, meaning you don’t have to start every tender from scratch with information about your company that remains the same over time.

Key Challenges and Considerations for Businesses

Some of the challenges with the new processes include:

• Adaptation to new rules: You will need to familiarise yourself with the new procedures and ensure they comply with the revised rules and guidelines, which may involve additional time and resources.
• Increased competition: As the procurement process becomes more accessible, competition for public contracts will likely intensify. This means big businesses must refine their bids to stand out in a more competitive market.
• Focus on sustainability: Businesses that are not yet focused on sustainability or social value may need to adapt their strategies to align with the new procurement priorities.

With this in mind, I am looking to source some training exclusively for SCA Members to support you in fully understanding these changes.  Watch this space!