Public Procurement - new year, new rules
We cover the latest and upcoming changes in legislation surrounding procurement and how to ensure you are ready for the changes.
Just under 3 years ago the Green Paper on Transforming Public Procurement was published. 18 months since the Procurement Bill was introduced into Parliament, it received Royal Assent and has now been passed into law as the Procurement Act 2023 (The Act). This is a significant achievement. The Act promises to speed up the procurement process and improve transparency as well as consolidating and simplifying the existing EU based regime.
Anticipated timelines
What are the steps for the Procurement Act and ancillary changes to come into force?
January 2024 - Revised thresholds for new procurements come into effect.
Early 2024 - Publication of secondary legislation and response to the consultation process on the secondary legislation.
October 2024 - The new Act is expected to come into force after a 6 month 'go live' notice period.
How to prepare?
It is important to note that until the new Act goes live, the existing legislation will continue to apply, and any procurements started before then will continue to be governed by the old regime.
Here are the steps you can take now to smoothen the transition to the new rules:
- Familiarise yourself with the new Procurement Act 2023 (legislation.gov.uk)
- Review your current contracts and procurement pipeline for 2024, to consider the new Act.
- Review the Transforming Public Procurement - planning and preparation checklist.
- Sign up to the Cabinet Office's Learning and Development materials, these range from knowledge drops to deep dives.
Thresholds
Along with the new Act, the Public Contracts Regulations 2015 are also due to be amended to revise the threshold amounts in line with currency fluctuations. These new thresholds will apply as of 1 January 2024 and do not affect any procurements commenced before then.
| Existing threshold (until 31 December 2023) (incl. VAT) |
Revised threshold (from 1 January 2024) (incl. VAT) |
|
| Works contracts (all) | £5,336,937 | £5,372,609 |
| Supply and services contracts (central government) | £138,760 | £139,688 |
| Supply and services contracts (local authorities, universities, academies, emergency services) | £213,477 | £214,904 |
| Works or services concession contracts (all) | £5,336,937 | £5,372,609 |
| Supply and services contracts (utilities contracts) | £426,955 | £429,809 |
If you have any questions or if would like to discuss support or training on the introduction of the new Act, please contact Stephanie Rickard in our Procurement team on 07384 251 896 or Isabelle West on 0117 314 5467. Alternatively, please complete the form below.