About the Procurement Act 2023

Dear Supplier,

You are likely to be aware of the upcoming changes to public procurement. The new regulations have been approved and the new Procurement Act 2023 (PA23) will be launched on Monday 24 February 2025.

This new legislation will change the way Cheltenham Borough Council and the public sector purchase works, goods and services.

The existing rules will continue to apply for contracts that are already in progress, and for procurements started under the current regime, however, for all new procurements post February, it is important that you understand the change.

A key objective for the Procurement Act 2023 was to make it easier for suppliers to do business with the public sector- as such there are some core benefits for suppliers once the new regime goes live in February, including:

  • A central place to register and to store your core business details so that they can be used for multiple bids
  • Improved transparency and access to information, with all public procurement opportunities in one place - making it easier to search for and set up alerts for procurements of interest to you
  • Better visibility of procurement plans, engagement events and tender opportunities - including those below threshold - increasing the number of opportunities available to bid on
  • Greater visibility about who is bidding for, and winning, larger public sector contracts above £5 million, and the details of those public contracts.
  • Simplified bidding processes to make it easier to bid, negotiate and work in partnership with the public sector - including a new ‘competitive flexible’ procedure.
  • Frameworks will be more flexible, so prospective suppliers are not shut out for long periods of time.
  • A new duty on contracting authorities to have regard to the particular barriers facing SMEs and VCSEs, and to consider what can be done to overcome them throughout the procurement lifecycle, helping level the playing field for smaller businesses so they can compete for more contracts.
  • Strengthened provisions for prompt payment throughout the supply chain -enabling SMEs to benefit from 30 day payment terms on a broader range of public sector contracts.
  • A stronger exclusions framework will take tougher action on underperforming suppliers.

This is a long-term change, so although these benefits may not be visible on day one, we are confident that the new regime will help break down barriers to entry into public sector procurement

Our procurement team is now working through the necessary training and guidance materials so we are ready to operate under the new regulations and realise the benefits of the new regime when it goes live.

The Cabinet Office, who are leading the Transforming Public Procurement programme, will continue working with leading business groups and trade associations to make sure information is available for suppliers.

Please read the Government Commercial Function’s The Procurement Act 2023 - a short guide for suppliers which has a useful summary of the changes and links to further information and resources. If you haven’t already- we strongly recommend you watch the ‘Knowledge Drop’ videos with dedicated versions designed specifically for suppliers, including SME and VCSE suppliers - these will give you a broader understanding of the changes which will be coming.

In the meantime, if you would like to discuss any aspect of the new Act please contact the dedicated Transforming Public Procurement helpdesk at procurement.reform@cabinetoffice.gov.uk.