Significant updates to procurement laws are approaching, with the new Public Procurement Act coming into effect on February 24, 2025.
Our Tender Team has compiled an overview to help you navigate these upcoming regulations effectively.
The Procurement Act 2023
On October 26, 2023, the Public Procurement Act 2023 received Royal Assent and was originally set to come into effect in October 2024. However, the go-live date has now been postponed to February 24, 2025.
This update will not impact procurements finalised before February 2025, and the PCR 2015 rules will continue to apply until then.
Here’s a snapshot of key changes affecting contracting authorities and tender processes starting February 2025:
- Central Digital Platform (CDP): A new unified online platform will be used for all procurement notices. Suppliers will register here, making it easier to join tenders. A debarment list will also be available to indicate which suppliers are excluded.
- Tender Procedures: The open procedure remains, but a new competitive procedure will replace all other current methods.
- Assessment Summaries: Instead of standstill letters, assessment summaries will detail bidder scores based on the criteria. A Contract Award Notice must be published online to trigger the 8-working-day standstill period (shortened from 10 calendar days).
- Voluntary Requirements: Planned Procurement Notices (PPNs) will replace Prior Information Notices. If prior market engagement is needed, a Preliminary Market Engagement notice must be published, or reasons provided in the tender notice.
- Pipeline Notices: Authorities with annual spending over £100 million must publish pipeline notices within 56 days of the start of the financial year, detailing contracts valued over £2 million.
- Conflict of Interest Assessments: These must be completed and updated throughout the procurement process and contract management.
- Payment Terms: Public contracts (except those for schools) must adhere to 30-day payment terms. All invoices must be paid within 30 days, and a ‘payments compliance notice’ must be published every six months.
- Key Performance Indicators (KPIs): For contracts over £5 million, three KPIs must be set, monitored, and published quarterly, with updates required before the end of 90 days from contract start and at termination.
- Contract Change Notices: Modifications to above-threshold contracts that increase or decrease the value by over 10% must be published.
- Contract Termination Notices: These must be published within 30 days of termination, including reasons for the termination, whether early or at expiry.
- Direct Awards: Allowed in cases of extreme urgency, lack of competition, or technical issues, but must be preceded by a Transparency Notice.
We’re here to help.
We’re committed to keeping you informed and prepared for the latest changes in procurement legislation. To help our clients navigate these updates, we recently hosted a webinar Q&A session. For ongoing support and advice, contact us at hello_UK@avendra.com.
For more details on the Procurement Act 2023, visit Government Guidance on Transforming Public Procurement.
