UK Public Procurement Bill: Transforming Government Contracting
The new UK Public Procurement Bill aims to revolutionise the way government contracts are awarded and managed. This legislation will simplify procurement procedures, improve access for small and medium-sized enterprises, and introduce new regulatory provisions to ensure fair and transparent contracting processes.
Impact on Small and Medium-Sized Enterprises
Improving Access for SMEs
The bill simplifies procurement procedures, reducing paperwork and bureaucracy. A new online platform will centralise contract notices, making it easier for small firms to find opportunities. Public bodies are encouraged to break large contracts into smaller lots, allowing SMEs to bid for portions that match their capabilities.
Support for Social Enterprises
The new rules recognise the unique value of social enterprises, allowing them to showcase their social and environmental benefits when bidding. Public bodies must consider social value in procurement decisions, and a 'reserved contracts' provision allows certain contracts to be set aside for social enterprises and worker-owned businesses.
Strategic Priorities and Security
Defence and Security Contracts
A separate framework for defence and security contracts allows for more flexibility and secrecy when needed. Buyers must consider national strategic priorities like job creation, balancing value for money with broader government objectives.
National Security Considerations
A new National Security Unit will assess procurement risks and have the power to bar suppliers deemed a security threat. The bill allows for greater scrutiny of foreign suppliers in sensitive sectors and increased transparency requirements.
Regulatory Provisions: Debarment List and Exclusions
Debarment List
The Act establishes a debarment list to exclude unfit suppliers from bidding on public contracts. This list will contain companies and individuals who have committed serious misconduct or shown poor performance.
Conflict of Interest Management
The Act strengthens rules on managing conflicts of interest in public procurement. It requires contracting authorities to identify and mitigate conflicts, with mandatory disclosure and clear procedures for handling them.
Enforcement
Authorities are empowered to exclude suppliers with unresolvable conflicts of interest, helping maintain public trust in the procurement process.
International Obligations
Global Alignment
The Act ensures UK procurement rules align with international obligations, incorporating requirements from trade agreements and other commitments.
Transparency
Includes rules for contract notices and award decisions to promote openness in the procurement process.
Non-discrimination
Incorporates clauses to ensure fair treatment of foreign suppliers while supporting domestic policy objectives.
Legislative Process and Amendments
01
Bill Passage Through Parliament
The Procurement Bill started in the House of Lords in May 2022 before moving to the House of Commons for debate and scrutiny.
02
Committee Stage
The bill underwent detailed examination in both Houses, with members tabling amendments to refine and improve the legislation.
03
Report Stage and Third Reading
The bill returned to the main chambers for final considerations and amendments.
04
Royal Assent and Enactment
The Procurement Act received Royal Assent on 26 October 2023, officially becoming law.
Social Value and Public Benefit
Broader Impact Consideration
Includes job creation, skills development, and reducing carbon emissions as key factors in procurement decisions.
Focus on Social Value
The Act emphasises social value in public procurement, requiring authorities to consider community and environmental benefits.
Exemptions for Public Benefit
Some contracts may be exempt from standard rules if they have a strong public benefit focus.
Supplier Requirements
Suppliers may need to demonstrate how they'll deliver social benefits alongside goods or services.
Human Rights and Ethical Standards
The Act aims to prevent UK public money from supporting human rights abuses abroad and allows for quick exclusion of firms if serious ethical breaches come to light during a contract.
Strict Ethical Standards
Sets out rigorous ethical requirements for public contracts.
Human Rights Consideration
Authorities must consider suppliers' human rights records.
Bans on Unethical Practices
Prohibits contracts with firms involved in human rights abuses.
Supply Chain Audits
Suppliers may need to prove ethical supply chains.
Contract Thresholds and Procurement Notices
These strategic modifications are designed to streamline the procurement process, reduce administrative barriers, and create a more inclusive, transparent environment that empowers small and medium-sized enterprises (SMEs) to compete more effectively for public contracts.
New
Contract Thresholds
The Act introduces updated financial thresholds that determine when full procurement regulations must be applied, providing clearer guidelines for businesses and public sector organizations.
Find a Tender
Procurement Notices
The United Kingdom has transitioned to the Find a Tender service as its primary platform for publishing procurement opportunities, effectively replacing the previous European Union's Official Journal (OJEU) system.
The Act streamlines processes, prioritizes social value, and increases transparency in contract awards and performance.
It replaces EU-derived regulations with a unified UK framework, offering more flexibility and better support for small businesses.
Introduces a competitive flexible procedure, focuses on social value and environmental goals, and improves accessibility for SMEs.
FAQs on the UK Public Procurement Act 2023