The Procurement Act 2023: Key Changes and Implications for the Education Sector

The Procurement Act 2023 introduces a major reform of the UK’s public procurement system, replacing the previous regulations with a single legislative framework. This consolidation impacts educational institutions like universities and colleges currently governed by:

• Public Contracts Regulations 2015;
• Utilities Contracts Regulations 2016;
• Concession Contracts Regulations 2016; and
• Defence and Security Public Contracts Regulations 2011.

For educational institutions engaged in regulated procurement activities, the Act brings a host of changes designed to make procurement simpler, faster, and more transparent, marking a fundamental shift in approach.

When does the Procurement Act 2023 come into force?

On 12 September 2024, the UK government announced that the Act will now come into force on 24 February 2025, instead of the previously announced date of 28 October 2024.

As well as allowing universities and colleges to transition more smoothly to the new regulatory framework, thereby reducing the risk of non-compliance and operational disruptions, the change of ‘go live’ date allows the current government to revisit and revise the National Procurement Policy Statement.

Survey on a New National Procurement Policy Statement

The Cabinet Office is undertaking a survey of the National Procurement Policy Statement to “understand how a new, mission-driven approach to public procurement could support delivery of the Government’s missions alongside local priorities.”  The survey launched on Monday, 7 October and will close at midday on Monday, 4 November. The Survey can be accessed here.

Key updates in the Procurement Act 2023

By consolidating and simplifying the rules, the Act aims to make the procurement process simpler, faster, more transparent, and less bureaucratic, benefiting both universities and colleges and suppliers.

Unlike the existing regulations, which primarily focused on the procurement of contracts, the Act introduces procurement as a concept that covers the entire lifecycle of a procurement. This end-to-end process encompasses everything from pre-market engagement, contract changes, performance monitoring to contract termination, with a new focus on contract management.

New reporting and notification obligations

Universities and colleges will need to comply with additional notification requirements regarding contracts to be awarded, contracts awarded, contract changes, contract termination, and performance, among other notices.  This includes how this information is presented to the market.  Universities and colleges will now have monitoring and reporting obligations throughout the process, requiring them to publish significantly more notices and information. Universities and colleges will need to ensure internal processes and procedures are in place to support these notification requirements.

Streamlined procurement Procedures

The Act simplifies procurement options, allowing institutions to select from three main procedures:

1. Direct award
2. Competitive tendering (via open or competitive flexible procedures)

1. Award under an existing framework

This increased flexibility gives universities the ability to shape procurement processes around their unique needs. The competitive flexible procedure, in particular, offers a new, efficient approach to meet procurement goals.

Standstill period and remedies

The mandatory standstill period is reduced to just eight days and is triggered by the publication of a contract award notice (CAN). This is a public notice, rather than a private notification within a procurement.

Publishing a CAN triggers the start of a mandatory eight working day standstill period before the contract can be entered, however, the range of remedies available to suppliers remains largely the same.

What are the implications of the delay?

Universities and colleges that were preparing to procure under the new Act will need to adjust their plans.  They may have to continue using the current regulations until the new Act comes into force. Procurement documents and processes that had been updated to comply with the new Act will need to be revised to align with the current regulations.  Universities and colleges may choose to delay their procurements to wait for the new Act, which could potentially impact the supply of goods, works, or services.

Universities and colleges subject to the Procurement Act 2023 are advised to get up to speed now on the new requirements of the Act to ensure there is no interruption in their procurement activities and to avoid the potential for compliance issues later

We’re here to Help

This extended timeline is an opportunity to ensure a thorough understanding of the Act. Our team is here to support universities and colleges as they update policies, documents, and procedures ahead of the February 2025 start date. Contact us today to learn how we can help your institution stay ahead of these regulatory changes.