The Procurement Act 2023 explained: what the new public procurement rules mean for suppliers

The Procurement Act 2023 explained: what the new public procurement rules mean for suppliers

Public procurement in the UK is changing in a way that directly affects how suppliers win, deliver and grow public sector contracts.

The Procurement Act 2023 is now the main law governing how public bodies buy goods, services and works across England, Wales and Northern Ireland. It replaces EU-derived rules such as the Public Contracts Regulations 2015 and introduces a new, more flexible regime that went live on 24 February 2025. GOV.UK+2Crown Commercial Service+2

If you are a cloud or tech firm, a professional services provider, a training provider or any business looking at UK public sector opportunities, you need to understand:

• what the Procurement Act actually is;

• what the new public procurement rules look like in practice;

• how the Act affects suppliers day to day; and

• what you should do now to position your business.

What is the Procurement Act 2023?

The Procurement Act 2023 is the primary UK legislation that sets out how contracting authorities must run procurements and manage public contracts.

In legal terms, it:

• defines what “procurement” and “covered procurement” are;

• sets out which organisations are “contracting authorities”;

• codifies the objectives and principles that must underpin every procurement;

• describes the procedures and tools authorities can use to award contracts;

• governs contract management, transparency, exclusion and remedies.Legislation.gov.uk+1

In simple terms: if a public body is buying goods, services or works above certain thresholds, started on or after 24 February 2025, the Procurement Act 2023 is the rulebook they must follow. Existing contracts that began under the old regulations stay under those old rules until they end or are replaced.GOV.UK+1

The Act sits alongside secondary legislation (Procurement Regulations 2024) and a refreshed National Procurement Policy Statement, which also came into force in February 2025.Crown Commercial Service+1

For suppliers, this is the framework that now governs how opportunities are advertised, evaluated, awarded and managed.

Why did the rules change?

The previous regime in the UK was based on EU directives, transposed into a patchwork of regulations for different sectors and contract types. The Government’s “Transforming Public Procurement” programme set out to:

• Simplify and speed up procurements;

• Create a single, more coherent framework;

• Open up the market to more SMEs and social enterprises;

• Improve transparency and contract management;

• Maximise value for money and public benefit.GOV.UK+2Local Government Association+2

Public bodies spend around £380–400 billion a year with the private sector. Local Government Association+1 Even small percentage improvements in competition, performance or payment speed have a huge impact. The Act is designed to deliver those improvements while making it easier for suppliers to bid.

The new public procurement rules in practice

Let's break down the major changes suppliers will experience under the Procurement Act 2023.

1. New objectives and a clearer strategic focus

The Act introduces statutory objectives that contracting authorities must consider whenever they run a procurement. These include:

• Delivering value for money;

• maximising public benefit;

• Sharing information to help suppliers engage;

• Acting, and being seen to act, with integrity.GOV.UK+1

For suppliers, this shifts the conversation away from “lowest compliant bid” and towards demonstrable value: outcomes, innovation, sustainability, social value and long-term benefits.

Your proposals need to show:

• How you deliver value over the life of the contract;

• How you help authorities meet wider policy goals (for example, net zero, skills, social value);

• Why you are a low-risk, high-performance partner.

2. New procedures, more flexibility

Under the old rules, most competitions had to fit into rigid procedural boxes such as open, restricted, or competitive dialogue.

The Procurement Act simplifies this and introduces:

• The open procedure, similar to the previous open process;

• The “competitive flexible procedure”, which gives buyers considerable freedom to design stages, negotiation and dialogue to suit the market;

• A clearer set of provisions for direct awards in specific cases;

• More flexible frameworks, including “open frameworks” that can be reopened;

• Dynamic markets as a new purchasing tool.GOV.UK+2Crown Commercial Service+2

For you, this means two important things:

1. The structure of tenders may vary more between authorities and competitions. For example you cannot assume every IT or cloud tender will follow the same pattern.

2. There may be more opportunities to influence, clarify and negotiate, particularly in complex or innovation-driven markets.

You will need to read instructions carefully, plan for multi-stage processes and prepare teams for negotiation and presentations, not only written responses.

3. Central Digital Platform and a simplified bidding journey

The Act goes hand in hand with a Central Digital Platform which replaces and expands the previous “Find a Tender” service.GOV.UK+1

Key points for suppliers:

• You can register your organisation details once and reuse them for multiple bids;

• Procurement notices, opportunities and contract data are brought together in one place;

• Authorities are expected to standardise elements of their processes through this platform, reducing duplication.

This supports the Act’s aim of “making it easier to bid and work in partnership with the public sector”, particularly for small businesses, start-ups and social enterprises.GOV.UK+1

In practical terms: investing a little time in setting up and maintaining your Central Digital Platform profile will save you time and friction over years of tendering.

4. Dynamic markets and frameworks redesigned

Dynamic markets are introduced as a new online purchasing tool sitting alongside frameworks. Crown Commercial Service+1

• A framework is still a closed list of suppliers appointed for a period, often through a full competition.

• A dynamic market is more fluid: suppliers can apply to join at any time during its life, subject to meeting the criteria.

This matters because:

• You no longer face a rigid “once every several years” gateway for some categories;

• You can join relevant dynamic markets mid-cycle if you are late to a sector or have developed new capability.

The Act also enables open frameworks which can be reopened to admit new suppliers over time, rather than remaining fixed for four or more years. Government Business+1

For businesses targeting public sector growth, this is a real opportunity to break into previously closed agreements.

5. Stronger prompt payment and financial stability

Government guidance emphasises that the Act is designed to improve suppliers’ financial stability and cash flow by:

• Strengthening provisions for prompt payment throughout the supply chain;

• Extending 30-day maximum payment terms to a broader range of public contracts;

• Increasing transparency of payment performance. Crown Commercial Service+2GOV.UK+2

Public agencies have been reminded that they should pay their suppliers, and ensure those suppliers pay subcontractors, within 30 days.

If you have struggled with late payment in the past, the new regime gives you more protection and more data to challenge poor performance.

6. Expanded transparency throughout the contract life cycle

The Act increases transparency requirements significantly, and the Cabinet Office has published extensive guidance for each stage of the process.

Authorities need to publish notices at multiple points, including:

• Pipeline or planning notices;

• Tender and contract award notices;

• Contract details and key performance indicators for larger contracts;

• Contract change notices for certain modifications;

• Contract termination notices.

For you, this delivers:

• A clearer forward view of opportunities;

• Visibility of how competitors performed;

• Insight into how contracts evolve over time.

It also means your own performance is more visible. That cuts both ways. Strong delivery becomes a powerful sales asset. Weak performance becomes a real commercial risk.

7. Exclusion and a central debarment list

The Act modernises rules on excluding suppliers and introduces a national debarment list.

Authorities must:

• Consider whether mandatory or discretionary exclusion grounds apply to a supplier (or sub-countractor);

• Record and report certain exclusion decisions;

• Consult the debarment list before awarding contracts.

For suppliers, a few realities follow:

• Behaviour that might previously have caused a problem with one buyer can now affect your eligibility across the public sector;

• Your subcontractors’ conduct can affect your ability to win, because exclusion can be triggered through the supply chain;

• You should treat compliance, ethics and governance as core sales enablers, not back-office chores.

If you operate in multiple frameworks or dynamic markets, your risk exposure is higher, so your governance needs to match.

How does the Procurement Act 2023 affect suppliers?

Most suppliers want a practical answer: “What is going to feel different when we try to sell into the public sector under these new rules?”

Here is what will change for you in day-to-day terms.

1. A different bidding experience

The official supplier guides are clear that the Act is intended to “simplify the bidding process” and make it easier to work with public bodies.

In practice, you should experience:

• Less duplication of organisational information thanks to the Central Digital Platform;

• More standardised core documentation, especially around selection criteria;

• Clearer notices and guidance, because buyers themselves now have detailed Cabinet Office guidance to follow.

However, you will also experience more variety in how competitive procedures are structured. Some competitions may be single-stage, others may include multiple stages and potentially involve interviews, demonstrations, negotiation and other steps - the important thing is that the process is proportionate to the size and complexity of the contract opportunity.

Your internal bidding process needs to be flexible enough to cope with both.

2. Greater emphasis on value, innovation and public benefit

Under the new objectives and the refreshed National Procurement Policy Statement, buyers are encouraged to focus on value for money and public benefit, not only cost. Crown Commercial Service+1

This will likely mean:

• Evaluation criteria that ask you to show innovation, social value, sustainability and long-term benefits;

• Scoring that rewards performance history and delivery capability;

• Increased interest in how you pay and treat your own subcontractors and staff.

If your current bids lean heavily on technical specification and price, you will need to expand your narrative.

3. More opportunities for SMEs and new entrants

Government guidance is explicit that the reforms are designed to benefit suppliers “of all sizes, particularly small businesses, start-ups and social enterprises”. GOV.UK+2GOV.UK+2

Practical examples include:

• Early market engagement designed to be more inclusive;

• Dynamic markets that you can join mid-cycle;

• Simpler, standardised selection questions;

• The ability for authorities to reserve some local or lower-value contracts for SMEs or VCSEs, within the rules.

If you are an SME supplier looking to increase your contracts within the public sector, this is likely the best opportunity in years to enter or scale in the public sector market.

4. Performance will follow you into future competitions

Because contract performance and payment data will be more visible under the Act, your track record moves centre stage. GOV.UK+2NHS SBS+2

Good performance means:

• You can point to public, third-party evidence of your delivery;

• Buyers can see that you meet KPIs and support prompt payment;

• Your case studies are reinforced by data.

Poor performance means:

• Buyers can see issues before inviting you to competitions;

• You may need to work harder to explain recovery and remediation;

• In some cases, exclusion or debarment could come into play.

This is one of the key risk areas for suppliers who focus only on “winning” and not on sustained delivery.

5. You must manage supply chain risk more actively

Under the new regime, your subcontractors are part of the picture. Exclusion can be triggered by problems in your supply chain. GOV.UK+1

If you lean heavily on partners for delivery, ask yourself:

• Do we know their compliance position;

• Do we have appropriate clauses on ethics, modern slavery, data protection and anti-fraud;

• Could a failure by them harm our eligibility across the public sector?

If the answer to any of these is “no” or “not sure”, this is an area to address now.

What should suppliers do now?

Let us turn this into a practical action list. If you are serious about public sector growth, here is what to focus on.

1. Map which of your current and target contracts will fall under the Act

You will be operating in a mixed world for a while. Some frameworks and contracts will remain under the old rules until they expire, while new opportunities start under the Act. Crown Commercial Service+1

Create a simple map:

• Which existing contracts are PCR-based;

• When they are due to expire or be re-let;

• Which upcoming frameworks or dynamic markets are explicitly flagged as Procurement Act-based in buyer pipelines.

This tells you where to prioritise your adaptation effort.

2. Refresh your value proposition for the new objectives

Take your current public sector sales narrative and test it against some of the new objectives:

• Value for money;

• Public benefit;

• Innovation;

• Integrity;

• SME and social value support.

If your materials talk mostly about features and price, start building content that shows outcomes, testimonials, performance metrics and social impact.

3. Update your bid library

Most suppliers have a library of reusable answers. Under the new regime, some of those answers will still work, but many will need updating.

Start by:

• Reworking standard responses on value for money, social value, sustainability and innovation;

• Updating answers about how you manage subcontractors, supply chain and prompt payment;

• Building new case studies that highlight performance against KPIs, not just “we completed the project”.

4. Prepare your organisation for flexible procedures

Design your internal process so you can respond to:

• Short, straightforward open procedures;

• Two-stage processes with selection then award questions;

• Competitive flexible procedures with negotiation rounds, demos and site visits.

This may mean having:

• A clear internal “bid team” with defined roles;

• A process for quickly assembling technical and commercial input;

• Named people who can lead presentations and negotiation.

5. Strengthen contract management capability

If you win, the Act means more visibility on how you perform. You can turn this into a selling point if you prepare.

Put in place:

• Simple internal KPIs aligned with what public bodies care about;

• Routine reporting that can be shared with clients;

• Mechanisms to track and improve your payment performance to subcontractors.

When future tenders ask for evidence of good contract management, you will have it ready.

6. Engage early with pipeline notices and market engagement

Authorities are expected to publish more advanced information about upcoming procurements through pipeline and planned procurement notices.

Make sure you:

• Subscribe to relevant pipelines for your target sectors;

• Monitor notices, not just live tenders;

• Attend market engagement events and respond to soft market testing where appropriate.

This is your chance to shape requirements, not just respond to them.

7. Review your compliance and governance posture

Finally, conduct a simple risk review:

• Have you ever had a contract terminated for poor performance;

• Are there any ongoing investigations or disputes that might trigger exclusion grounds;

• Do you have clear policies, training and controls around ethics, modern slavery, anti-bribery and data protection.

If you identify weaknesses, address them now, before they become reasons for exclusion under the new regime.

Common supplier questions

Here are some of the most frequent questions suppliers ask about the Act, answered directly.

Is the Procurement Act 2023 good or bad news for suppliers?

For most proactive suppliers, it is good news.

It simplifies core processes, opens up access via dynamic markets and open frameworks, and strengthens payment protections. Crown Commercial Service+2GOV.UK+2

The potential downside is that it makes performance and compliance more visible, so you cannot hide weak delivery or poor governance.

Will the new rules make it easier to win as an SME?

They give you a fairer shot, but they do not guarantee a win.

The regime is explicitly designed to remove some of the structural barriers SMEs face and to encourage more SME and VCSE participation. GOV.UK+2GOV.UK+2

You still need to:

• Offer a compelling solution;

• Price competitively;

• Demonstrate delivery capability.

The Act gives you a clearer playing field, not a free pass.

If I am already on G-Cloud or other frameworks, can I ignore this?

No. Even if your current agreements remain under PCR 2015 for a time, the next iteration is likely to be let under the new regime. CCS has already flagged which future agreements will be awarded under the Act in its commercial pipeline. Crown Commercial Service+1

If you are serious about staying on those agreements and growing revenue from them, you should adapt now.

Final thoughts: act early, do the basics well, and the new rules can work for you

The Procurement Act 2023 is not just a legal curiosity. It changes the shape of UK public procurement for years to come.

If you get ahead of it by:

• Understanding what the Act is;

• Adapting your bidding to the new objectives;

• Strengthening contract management and governance;

• Engaging earlier via pipeline and market engagement;

• Using dynamic markets and open frameworks to your advantage;

Position your business to grow, not simply to survive the change.

If you ignore it and carry on as if PCR 2015 still defines everything, you risk being out-performed by suppliers who have tuned their offering and operations to the new rules.

This article reflects Nexus Procurement Solutions’ professional perspective on current procurement developments and does not constitute formal advice.