What is The Procurement Act 2023?

south coast Higher Education public Client — Roof Top View of south coast Higher Education Client

According to GOV.uk, this transformation of public procurement will change to improve the way supplies, services and works are procured for the public sector. The Procurement Act 2023 marks a significant shift in the way public procurement operates in the United Kingdom. As the government seeks to streamline processes, enhance transparency, and promote innovation, this Act introduces a host of changes that are set to transform the procurement landscape. For businesses and public sector organisations alike, understanding the implications of this legislation within the building maintenance industry is crucial.

What are The Procurement Regulations 2024

The Procurement Act 2023 and the Procurement Regulations 2024 are closely related but serve different purposes in the UK's reformed public procurement framework. The Procurement Act 2023 provides the foundation and introduces the requirement for more transparent procurement processes, while the Procurement Regulations 2024 fill in the details required to operationalise it. Both are essential for the reformed system to function effectively.

When does it come into effect?

The Procurement Act 2023 was originally scheduled to come into force on October 28, 2024, but was delayed until February 24, 2025. We are fully prepared to embrace this significant change, and are confident that procurement leaders within the public sector are also ready to adapt and move forward in this evolving area. If you have landed on this blog and are interested to learn more about the key changes and what JCW already do for public sector tenders, read on to find out more.

Dynamic Market

This new legislation aims to help suppliers of all sizes, including small businesses and start-ups. As the market can be dominated by FM giants, this is a step towards a fairer procurement process and JCW definitely see this benefiting society as a whole over time. JCW is a medium-sized, national building maintenance service provider, that proudly employs local engineering talents. This commitment to local expertise ensures that, regardless of where our public sector clients are located across the country, we can consistently deliver a distinctly local feel and a personalised service experience.

MAT replacing MEAT

Currently Contracting Authorities use the Most Economically Advantageous Tender (MEAT) approach to score building maintenance contractors during a public procurement process. We frequently see these evaluations set at a combination of 40% to price, 60% to quality. In the new Act, to increase flexibility, the Contracting Authority may award on the basis of “Most Advantageous Tender’ (MAT). This suggests that pricing may have a lower weighting and allows for broader criteria to be assessed including social and environmental commitments, which for an organisation who consistently score well on quality, is a great change as we approach new bid opportunities.

KPIs

By promoting transparency in all commercial activities, The Procurement Act aims to improve accountability in the maintenance and construction sectors by monitoring subcontractor performance against Key Performance Indicators (KPIs), promoting a more transparent process throughout the commercial lifecycle.

As a national business that already supply building maintenance services to organisations in the public sector, JCW have always put accountability and transparency at the forefront of our services. Although, it will be made mandatory for contracting authorities to set and publish KPIs for public contracts worth more than £5m, JCW has already developed and follow a system of KPI measuring and improvement for contracts of all sizes and value, and we supply this innovative KPI analysis tool to our clients. We believe that better transparency will encourage better value in spending taxpayer money.

Visibility of Public Tenders

The Act requires Contracting Authorities to raise the number of published notices. This includes all stages of the procurement process, from planning to contract expiration. Currently, the publishing of stages tend to include Early Engagement, Opportunity and Awarded Contract. By introducing the notification of additional stages, maintenance contractors like ourselves are able to plan our bidding process in a significantly more time-effective manner. This improved approach allows us to better allocate resources and schedule our workloads, ultimately enhancing our overall efficiency and productivity.

What Does The Procurement Act 2023 Mean to You?

The Act will make it easier for all businesses to participate, to innovate and to diversify in the process of a public tender. Inline with our company core value, we look forward to a faster and collaborative tender process, as well as more transparency; ensuring that we all look after the public’s money, as well as the ever changing needs of our community.