02/04/2025
The Procurement Act 2023, which came into force on 24 February 2025, marks a significant shift in the way public procurement operates in England, Wales, and Northern Ireland. Designed to simplify and enhance transparency, the Act introduces new rules for supplier exclusion, debarment, and appeals, ensuring a fairer and more accountable system for businesses and contracting authorities alike.
Key Changes in Public Procurement:
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Simplification of Processes: The Act reduces bureaucratic hurdles by eliminating EU-derived rules, thereby simplifying the tendering process for businesses. This is particularly beneficial for small and medium-sized enterprises (SMEs), as it allows them to submit core information once and use generated codes for individual tender documents, minimising repetitive submissions.
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Emphasis on Social Value: Public procurement decisions now place greater weight on 'social value,' encouraging contracts that promote local growth, job creation, and support for small businesses. This shift aims to reduce reliance on large multinationals and foster a more diverse supplier base.
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Support for SMEs: New guidance mandates public agencies to facilitate SME participation in public contracts. Measures include a public interest test for outsourcing, enhanced scrutiny of large suppliers, and 30-day payment terms for subcontractors.
Notable Provisions:
· Excluded Suppliers: The Act introduces stringent exclusion grounds for suppliers with certain convictions. Specifically, companies convicted under Section 1 of the Corporate Manslaughter and Corporate Homicide Act 2007 are subject to mandatory exclusion from public contracts.
· Debarment Regime: A central debarment list is established and maintained by the Cabinet Office. Suppliers can be added to this list for up to five years if found to be 'excluded' (mandatory grounds) or 'excludable' (discretionary grounds). Contracting authorities must not award contracts to suppliers on the debarment list for mandatory exclusion grounds and should exercise caution for those listed under discretionary grounds.
· Suppliers' Right of Appeal: Suppliers have the right to appeal debarment decisions. After notification of the intent to add them to the debarment list, suppliers have an eight-working-day standstill period to apply to the court for a temporary suspension of the decision. Appeals must be based on a material mistake of law and initiated within 30 days of the supplier becoming aware of the decision.
· Self-Remediation (Self-Cleaning): Suppliers can demonstrate 'self-cleaning' to avoid exclusion or debarment. This involves providing evidence of corrective measures such as paying compensation, implementing compliance programmes, or making personnel changes. The effectiveness of these measures is assessed to determine if the circumstances leading to exclusion are unlikely to recur.
Conclusion:
The Public Procurement Act 2023 is designed to achieve a more efficient, transparent, and ethical public procurement system. By simplifying processes, emphasising social value, and enforcing strict compliance measures, the Act aims to foster a fair and competitive environment that benefits both the public sector and suppliers.