Introduction: A New Era of Public Sector Procurement
The UK Procurement Act 2023 marks a transformative moment in the way public sector contracts are advertised, competed for, and awarded. Designed to simplify procurement, improve transparency, and encourage innovation, this legislation replaces the EU-derived rules with a more agile, UK-specific framework. For technology suppliers, especially SMEs and digital service providers, this shift opens new opportunities—but also brings new responsibilities.
In this blog, we break down what the UK Procurement Act 2023 means for tech suppliers, highlight key changes, and provide practical guidance on how to adapt to this new procurement landscape.
What Is the UK Procurement Act 2023?
Key Objectives of the New Procurement Framework
The UK Procurement Act 2023 is designed to:
- Simplify procurement by replacing multiple frameworks (Public Contracts Regulations 2015, Utilities Contracts Regulations, etc.) with a single rulebook.
- Make public procurement more transparent and competitive.
- Boost SME participation and innovation in government contracting.
- Increase flexibility for buyers to achieve best value—not just lowest price.
- Strengthen national security and risk management in supplier selection.
- The Act applies to all public sector contracts across central government, local authorities, the NHS, education, and more—covering an estimated £300 billion in annual spending.
How the Procurement Act Affects Tech Suppliers
Opportunities and Challenges for Digital and IT Firms
Increased Access for SMEs
One of the Act’s main goals is to reduce red tape and open up public sector work to smaller, innovative suppliers. This includes:
Simpler pre-qualification processes.
Easier access to frameworks and dynamic purchasing systems (DPS).
Greater focus on social value, environmental impact, and innovation.
Emphasis on “Most Advantageous Tender” (MAT)
Previously, contracts were awarded based on MEAT (Most Economically Advantageous Tender), often interpreted as cost-first. The UK Procurement Act 2023 shifts focus to MAT, allowing more room for:
- Quality
- Innovation
- Resilience
- Sustainability
- Long-term value
Tech suppliers can now compete on strengths like scalable architecture, data security, user experience, and ESG alignment—not just low cost.
New Notices and Transparency Requirements
Suppliers will see a more open process with mandatory publication of:
- Pipeline notices
- Contract award notices
- Transparency notices
- Payment performance data
This improves visibility of future opportunities—but also increases accountability for suppliers.
Preparing Your Business for the Procurement Act
Best Practices for Compliance and Growth
Review Your Bidding Strategy
Make sure your bids reflect the new evaluation metrics. Highlight not just price, but:
Innovation
Value for money over time
Environmental and social benefits
Risk mitigation and resilience
Audit Your Contract History
Buyers may request performance data. Ensure your previous projects, especially those involving the public sector, are well-documented and aligned with new standards.
Strengthen Collaboration
With more flexibility for joint bidding and supply chain partnerships, consider strategic alliances with complementary providers (e.g. cybersecurity, user design, or accessibility experts).
Future Outlook: What’s Ahead for Tech Suppliers?
As the UK Procurement Act 2023 rolls out fully (expected during 2024–2025), tech suppliers should expect:
More digital-first tenders, especially in cloud, data analytics, AI, and automation.
Growth of outcome-based contracts, focusing on performance and results.
Greater demand for sustainability credentials, including net zero roadmaps and energy-efficient tech.
Tighter compliance checks, especially regarding cybersecurity and supply chain risk.
Early adopters that align with these trends will be best positioned to win long-term, high-value public sector work.
FAQs
1.When does the UK Procurement Act 2023 come into effect?
The Act is expected to come into force in October 2024, following a six-month preparation period announced in April 2024.
2.Does the Act apply to all public sector tech contracts?
Yes. It applies to all public sector procurement, including digital services, IT systems, cybersecurity, and cloud infrastructure.
3.Will tech suppliers still need to use platforms like Contracts Finder?
Yes. Notices must still be published on Contracts Finder, Find a Tender, and the new Central Digital Platform being developed for unified procurement.
4.What is a Pipeline Notice?
A Pipeline Notice alerts suppliers to upcoming opportunities. It allows businesses to prepare in advance and plan resources or partnerships accordingly.
5.How can small tech firms compete under the new rules?
By focusing on innovation, niche expertise, ESG credentials, and partnerships, SMEs have a strong advantage under the new MAT evaluation approach.
Conclusion: Embrace the Opportunity
The UK Procurement Act 2023 is more than a legal change—it’s a strategic shift toward smarter, fairer public sector procurement. For tech suppliers, this creates new ways to differentiate, compete, and win.
Start preparing now by updating your tender strategies, ensuring compliance, and promoting your innovation and impact credentials.
Need help adapting to the new rules?
Contact our procurement and bid writing experts today for support with navigating tenders under the UK Procurement Act 2023.
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