Procurement Act 2023 - Go-live date and update
The Procurement Act 2023 (the Act) receiving Royal Assent in October of last year was the first step in the long-awaited implementation of the public procurement reforms.
The Cabinet Office has now confirmed the 'go-live' date of 28 October 2024. The secondary legislation, The Procurement Regulations 2024, which will underpin and provide further detail on the implementation of the Act, has now been laid in Parliament and will be debated by both Houses before being signed into law.
We have set out some of the key points in the Regulations.
Transparency
The Regulations set out more detail on the transparency provisions and the requirements of the notices to be published throughout the full lifecycle of a procurement.
One of the biggest changes to the transparency provisions, following consultation, is that the requirement to identify unsuccessful bidders in the Contract Award Notice will now only apply where the value of the contract is over £5 million. It is hoped that this will help to decrease the potential administrative burden that the new notices will bring.
When providing feedback to unsuccessful bidders on the reasons for an award decision, there is no longer a requirement for contracting authorities to provide the 'relevant advantages and characteristics' of the successful bidder, but an explanation of the score that was awarded.
Light Touch Regime
The scope of the light touch regime is largely the same as under the Public Contracts Regulations 2015 however there has been some new services added such as e-learning services and museum services. These light touch services will still be determined by CPV codes but the Act includes a full list of services as opposed to categories for clarity and certainty.
There have also been changes to reduce the burden on contracting authorities, including making light touch contracts exempt from the rules around contract management.
Regulated Health Procurement
The Regulations also clarify how the Health Care Services (Provider Selection Regime) Regulations 2023 (the PSR), which came into force at the beginning of this year, will work with the Act. Regulation 43 confirms that the Act does not apply in relation to regulated health procurement (healthcare services) and will instead be regulated by the PSR. All other NHS procurement for goods, works or non-healthcare services will be regulated by the Act.
Cabinet Office Guidance Documents
The Cabinet Office has also published guidance documents on the Act - Procurement Act 2023 guidance documents. These documents focus on the definition of a contracting authority, mixed procurement, exempt contracts, notices and the transitional arrangements. The current procurement regime will continue to apply to all procurements started before the commencement date.