As the industry has been gearing up for the new era of public procurement, the Cabinet Office has announced a delay to the commencement of the forthcoming Procurement Act 2023. Originally set to go live in late October 2024, the new date has been set for 24th February 2025.
The full statement made to parliament can be read on the government’s website here.
We’re here to unpick the reasons behind the delay and what it means for clients and suppliers. Read on to find out more.
Why has the Procurement Act been delayed?
The government has opted to delay the commencement of the Procurement Act to allow time for a new National Procurement Policy Statement (NPPS) to be produced.
As the NPPS was laid out in parliament in May 2024 by the previous administration, it does not align with the new government’s strategic priorities for public procurement and has therefore been withdrawn. The delay will provide time for a new NPPS to be produced, ensuring full alignment with the government’s strategy once the Procurement Act begins.
What is the National Procurement Policy Statement and why is a new one needed?
The NPPS is a statutory statement that allows the government to set and communicate wider policy objectives to which public procurement should contribute. As it sets out strategic priorities for the government, it is reasonable that the NPPS would be updated following the election as said priorities changed.
The Cabinet Office has stated this will create a “mission-led procurement regime which builds on the transformative powers within the Act, and which meets the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value.”
This aligns with the objectives of the Act, with increased transparency, simplicity, and the move from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). Our own approach at Pagabo has always been rooted in ensuring quality and truly embedded social value – all wrapped up with the vital compliance needed – and so the government looking to align these principles even more strategically in a new NPPS is a promising thing to see for meeting the act’s objectives when live.
What do people need to do?
There will be certain behavioural changes that are essential to deliver the objectives of the act, and so we would urge suppliers and contracting authorities to use the additional four months to prepare for the changes the act will bring , including policies, procedures and processes – you can read more on these here.
Contracting authorities should examine their upcoming procurement pipeline projects scheduled between October and March and consider whether timings can be adjusted or to continue as planned using an appropriately compliant framework.
What about the learning and development materials already released – will they still be relevant?
In short, yes. The delay does not impact the availability of content or any of the official materials, which will continue to be available up to and after the new commencement date and will not need amending. The official line from the Cabinet Office is that if you are scheduled to start any training in the new regime, or are booked in for a Deep Dive session, these should continue as planned.
Prolonged time to engage with the learning and familiarise yourself with the upcoming changes will lead to greater levels of practical understanding once the act comes into force in February.
How does this impact Pagabo’s frameworks?
We do not have any frameworks scheduled to expire prior to the new proposed go live date, so our pipeline remains unaffected by the delay.
Existing frameworks remain a compliant route to market and are available to facilitate call offs under the regulations the framework was originally procured under, Public Contract Regulations 2015. All frameworks in our portfolio continue to be available for use with full compliance with the existing regulations – and will be here to ensure full compliance continues under the new regime.
If you have any queries about our current frameworks or your upcoming procurements, please email info@pagabo.co.uk.
What will happen next?
The new NPPS will be drafted and put out for consultation, which will allow adequate time for contracting authorities to review the updated strategic priorities. After this point it will be laid to complete a 40-day passage in parliament – consistent with the process followed for the existing NPPS.
In the meantime, work on the central digital procurement platform – will continue at pace, with the Cabinet Office currently reviewing how to use the additional time for testing and deployment.
Final thoughts
Ultimately, the appropriate time is required to ensure the quality of the commencement and that all associated policies are at the level needed to meet the reform objectives, obtain buy-in and maintain confidence in procurement teams of the new provisions and systems being used.
While we are all keen to be under a regime pushing greater levels of transparency and quality over the bottom line in procurement, if the delay makes sure that procurement teams are appropriately prepared and have confidence to procure under the new act, then that is a valuable outcome.
Our team remains on hand to advise clients and suppliers alike on the upcoming changes and continued procurement compliance – and we will continue to bring you the latest around the Procurement Act as the NPPS is developed and put out for consultation.
Still have any questions about the Procurement Act? Please email info@pagabo.co.uk.
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