Knowledge Drop for Suppliers Part 3

This Knowledge Drop provides an overview of the Procurement Act 2023, targeted at suppliers into UK public, utilities and defence sectors. It highlights the changes that the Procurement Act 2023 brings to make it simpler and more flexible than the previous legislation which can cause organisations to need to change how they do business with UK government, utilities and defence. As a devolved issue, it is worth noting that the Scottish Government will continue to have its own legislation.
  • Exclusions

o   Mandatory and discretionary grounds that could exclude a supplier

o   Contracting authorities can take into account a broader range of evidence to demonstrate action to resolve any grounds for exclusions – e.g. change of staff

o   Suppliers cannot avoid potential exclusion by tendering through a subsidiary or by dissolving and reforming under a different name

o   Contracting authorities must ask for information about subcontractors that you intend to use to deliver the contract

  • Debarment

o   The debarment list will set out which suppliers must and may be excluded from a procurement

o   If there has been a material change in circumstance, the supplier can apply to have their name removed from the debarment list

  • Change in award procedures

o   Post tender feedback will be provided in the form of an assessment summary for your organisation, the winning supplier’s assessment summary and may be accompanied by additional feedback

o   8 working day standstill period

o   Publication of contract awards for all over £5m and redacted copies of the contract.

  • More effective contract management

o   The transparency requirements set out in the Act provides an opportunity for contracting authorities to improve contract management practice – working alongside suppliers.

o   Any contract over £5m in value must have three Key Performance Indicators and publish information on supplier performance

o   Contract Change Notices must be published before a contract is amended

o   Must publish details where a breach of contract or persistent poor performance

o   Recording and publishing details of contract spend more than £30,000

o   Publishing a Contract Termination Notice whenever a contract comes to an end

o   Only information that would be required under Freedom of Information will be considered for publication – confidential and commercially sensitive information will remain secure. More guidance will be published on what is non publishable information – such as profit margins and elements of a tender that shows innovation or unique technical aspects.

  • Wider Commitments on Prompt Payment

o   30 day payment terms automatically passed down to suppliers and their subcontractors regardless of whether they are written into a contract

o   Greater accountability for public bodies on their payment practices through publishing payment performance data

  • More Flexibility in Making Contract Amendments

o   All of the amendment grounds from the previous regulations have been retained with the addition of new grounds to cover scenarios such as urgency and the protection of life to address complex risks.

o   Designed to prevent a re-compete of a contract when a contract amendment would solve the issue.

  • Transparency Ambition

o   The Central Digital Platform will house all data from planning, procurement, contract implementation and finalisation

o   Tender opportunities more visible and accessible in one place

o   Identification of opportunities through visible pipeline

o   Opportunities to take place in pre-market engagement

o   Visibility of performance information

  • Improved Procurement Oversight

o   Increased confidence poor practices will be identified and resolved

o   Procurement Review Unit will encourage compliance with the Act, investigate suppliers in addition to the debarment list and investigate poor procurement practice.

o   A place to field any direct complaints

  • What can suppliers do to prepare for the Procurement Act?

o   Understand the main changes

o   Identify opportunities for collaboration

o   Submit information on the Central Digital Platform when available

o   Use pipelines to plan your bidding strategy

o   Identify how you can support wider procurement priorities

o   Identify if you fall into any of the new exclusions and undertake steps until you do

o   Existing procurement processes will remain in place until the Procurement Act goes live.

o   Existing agreements will remain unchanged until that agreement expires

  • Navigate

Knowledge Drop for Suppliers

Knowledge Drop for Suppliers Part 2


Knowledge Drop for SME's

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