Navigating the Procurement Act 2023: What Suppliers Need to Know
- Tracey O'Connell
- Mar 25
- 2 min read
If your business supplies goods or services to organisations that are required to follow the Procurement Act 2023, understanding the implications of this legislation is essential. Public bodies must ensure they procure responsibly, fairly, and transparently—making it crucial for suppliers to align with their obligations.
The Purpose of the Procurement Act 2023
Public bodies are accountable for how they spend public funds, and the Procurement Act 2023 sets out the rules that regulate this process. Before Brexit, UK procurement followed a framework derived from European law. Now, with the Act, the UK has developed its own independent procurement regime.
From 24th February 2025, all new procurement activities must comply with the Act. Any procurements started before this date will remain under previous rules.
The Act ensures that public procurement is fair, equal, non-discriminatory, and transparent, giving all businesses a level playing field when bidding for contracts.
Who Must Comply with the Act?
The Act applies to specific types of organisations, known as contracting bodies. These include:
Public authorities (e.g., local councils, schools, hospitals, government departments)
Public undertakings (organisations controlled by public authorities)
Certain private utilities (as specified within the Act)
Public Authority Duties Under the Act
The duties of public authorities depend on the type of contract they are procuring. These responsibilities fall into two broad categories:
1. Non-Procedural Duties
While these duties do not dictate specific procedural steps, they must be considered in procurements under the Act. They include:
Ensuring procurement objectives align with fairness, transparency, and competition
Taking into account the National Procurement Policy Statement
2. Contracting Procedure Duties
The Act outlines clear procedural steps that public authorities must follow throughout the procurement lifecycle. These steps fall into three key areas:
Preliminary Steps – Ensuring compliance before the procurement process begins
Award – Selecting suppliers based on fairness and due process
Management – Overseeing contract execution and compliance
How Contracts Are Categorised
The Act groups contracts into several categories based on factors such as contract price and subject matter. Understanding how your contract is classified under the Act can help you anticipate the obligations and expectations placed on the contracting authority.
Why Suppliers Should Care
For suppliers, grasping the framework of the Procurement Act 2023 is not just a compliance matter—it’s a commercial advantage. By understanding the legal responsibilities and pressures faced by public authorities, suppliers can:
Streamline the bidding process by tailoring proposals to meet public procurement criteria
Anticipate and address queries from contracting authorities more effectively
Manage contracts efficiently throughout their lifecycle
Further Guidance
The UK Government provides useful guidance for suppliers navigating the new procurement landscape. For official resources, visit: Government Procurement Guidance
Need Help? Let’s Talk
Understanding public procurement regulations can be complex, but we’re here to help. Whether you’re preparing a bid, managing a contract, or navigating procurement rules, we can provide the legal support you need. Contact Tracey at 01202 729 444 or email tracey@law-point.co.uk.
