Public sector procurement changes
Upcoming changes to public sector procurement – what suppliers need to know
From 24 February 2025 the way that we procure and manage contracts will change. The Procurement Act 2023 will shake up our outdated system and improve the way procurement is done, so that every pound goes further for our public services
For suppliers, the key features that should make it easier to do business with contracting authorities include:
- A central digital platform (CDP) for suppliers. Here you can register and store details so that they can be used for multiple bids whilst seeing bidding opportunities in one place. The CDP will be an enhancement to the existing Find a Tender Service and will offer:
- A simplified registration approach.
- A store for core business details that you can use for multiple bids.
- Simplified bidding processes to make it easier and allow for negotiation and working in partnership with the public sector - including a new ‘competitive flexible’ procedure.
- Commercial frameworks will be more flexible so that prospective suppliers have the opportunity to join a framework during its lifetime.
- A new duty on contracting authorities to have regard to barriers facing SMEs and VCSEs, and to consider what can be done to overcome them throughout the procurement lifecycle, helping smaller businesses to compete for more contracts.
- Strengthened provisions for prompt payment throughout the supply chain - enabling SMEs to benefit from 30-day payment terms on a broader range of public sector contracts.
- A stronger exclusions framework will take tougher action on underperforming suppliers.
Further Information
There is a range of information and resources about the new regime on the Transforming Public Procurement landing page including a series of short ‘Knowledge Drop’ instruction videos with tailored versions designed specifically for suppliers.
Suppliers can familiarise themselves with the Act and sign up for regular updates.
The Cabinet Office is running two webinars for suppliers to support readiness. The sessions will focus primarily on what the key changes are, how the central digital platform will work (featuring a live demonstration). If you are interested, you can book your place via the below links: