Emma Harrison shines a spotlight on the incoming new procurement regulations.

Are you ready?

Public sector procurement is changing. Since leaving the EU, the UK is no longer bound to the four current EU-based set of regulations, one of which is the Public Contracts Regulations (PCR) 2015, which people engaged in procurement will be familiar with.

The new Procurement Act 2023 (tinyurl.com/36kyrk2e) consolidates the four sets of regulations into one act. The new law is set to create a new and improved set of regulations for procurement. It was expected to come into force on 28 October 2024 but has been delayed until 24 February 2025 to allow time for a new National Procurement Policy Statement (NPPS) to be produced.

Procurement or contracts that commenced before the new regulations are in force, will continue to follow PCR 2015 compliance until the contract expires or is replaced.

The new act aims to simplify procurement processes and set out new objectives that include:

• A a greater emphasis on value for money and encouraging innovation, and
• B acting, and being seen to act, with integrity and
• C maximising public benefit.

The act also enhances transparency throughout the procurement lifecycle, and this is supported by notices at multiple stages.

Changes

There are many changes in the new legislation, including several current prescriptive procedures that have been reduced down to two procedures. The act also gives contracting authorities (CAs) more freedom for direct awards in specific situations.

Many CAs will already be participating in pre-market engagement, and this is certainly not new; pre-market engagement should be used to inform and shape competitive procedures and associated award criteria. Project timetables should allow suppliers to have sufficient time to respond and be proportionate to the requirements.

There is a notable, positive inclusion in the act to allow organisational procurement processes to enable public benefits. CAs should consider social, environmental and economic benefits of where the contract will be delivered, not just the price and quality, when buying goods and services. Many CAs will already be considering, and indeed including social value as part of their procurement strategy, but the act provides a sharper focus on this going forward to realise the benefits.

The new act facilitates this move by shifting its focus from legally awarding contracts based on MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender). This approach encourages CAs to design procurement processes to take advantage of a wider range of award criteria, not just the cheapest, enabling broader benefits to the communities they serve.

There are other expectations such as (and not limited to), at contract award, and enhanced rules for contract awards above £5 million. The act also provides for greater governance, with an enhanced lens on contract management.

Framework agreements

Current frameworks provide an efficient and timely route for purchasing goods, works and services in a compliant way. Frameworks will still be available, and it is likely schools and colleges will continue to maximise the use of these. Framework providers will be updating their systems and processes to ensure compliance with the new legislation.

Procurement professionals

While not sector specific, the Cabinet Office has produced a set of free knowledge drops that provide a high-level overview of the changes to the procurement regulations – see here tinyurl.com/48aneca7 Within these, “procurement and commercial teams” is referred to multiple times, and while there are some great examples of good practice in the education system, some schools and colleges report struggling to have the time, resources or skillsets to navigate complex procurement processes.

Procurement is mentioned in the current Academy Trust Handbook (tinyurl.com/2wy2u4t6), which makes some reference to procurement and spending decisions, and features as a professional discipline in the Institute of School Business Leadership (ISBL) professional standards (www.isbl.org.uk/isbl-professional-standards).

The new act has shone a spotlight on the profile of procurement, highlighting the importance of having the right skills and expertise to lead and oversee, in some cases, complex procurement activity. And in the current financially challenging situation, realising the full benefits of all procurement activity is a must.

Procurement is complex and changing; act now to understand what the new act may mean for your school or college, to ensure your processes are compliant with the new regulations.

Emma Harrison
ASCL Business Leadership Specialist
@EmmaJHarrisonx

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