Thoughts From: Pick Everard – From Complexity to Clarity: What the Procurement Act Means for the Future of Public Procurement

Replacing rules inherited from EU regulations, the new Procurement Act has been introduced to simplify processes and improve transparency, efficiency, and inclusivity.

Below, Esther Corns, director and head of bidding at Pick Everard, assesses industry sentiment and the expected outcomes of the Procurement Act before the launch, using data from its latest Market Intelligence Survey. 

Key reforms of the Procurement Act 

One of the key reforms of the Procurement Act is the introduction of mandatory updates and reporting throughout all stages of procurement, from pipeline planning to contract awards, feedback and overall outcomes. This has been designed to increase accountability and visibility, addressing concerns that procurement decisions are often difficult to scrutinise as updates, feedback, and associated information are inconsistent or not made available.

Greater transparency and fairness 

According to the survey, the top three most important outcomes of the new legislation, as selected by respondents, are greater transparency and fairness (48%), ability to negotiate through procurement (42%), and improved market efficiency (41%). 

While these changes may introduce additional administrative burdens on clients, especially those who are already experiencing resource issues, many believe the benefits to all parties will outweigh the challenges.

Simplify and streamline processes

The other priority of the Procurement Act is simplifying and streamlining processes, which was voted as one of the most important outcomes to our respondents’ organisations (62%), alongside improved accessibility for local suppliers and SMEs (52%). The simplification of processes, with the use of a central digital platform, will make it easier for small and medium enterprises (SMEs) to identify and compete for contracts, opening up opportunities that were previously out of reach.

This shift is expected to positively impact local businesses and help stimulate local economies providing competitive rates for clients whilst also helping to deliver additional benefits to affected communities.

The Procurement Act’s implementation will reshape how businesses interact withgovernment procurement processes, creating opportunities and challenges. While it offers significant opportunities, especially for small businesses and local suppliers, it also presents challenges in terms of compliance, digital adaptation and increased competition.

Greater value 

The survey also highlighted concerns about the Procurement Act’s ability to deliver greater value for public sector operations, with more than 40% of respondents expressing doubt about its effectiveness. Over the next six to twelve months those in the industry will need to pay close attention to how the system unfolds, and the impact it will have on creating real value in the public sector.

Overall, businesses that can innovate, adapt to digital systems, and meet sustainability and ethical standards will likely thrive, while those that struggle to adjust may face difficulties navigating the evolving procurement landscape.