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Landmark UK legislation replacing EU procurement rules with a flexible, unified framework for public sector purchasing, introducing the single procurement procedure and enhanced transparency.
The Procurement Act 2023 represents the most significant overhaul of UK public procurement law in decades. This legislation replaces the EU-derived Public Contracts Regulations 2015, establishing a distinctly British approach to public sector purchasing that takes effect from October 2024.
The Act introduces a single, flexible procurement procedure replacing the rigid EU framework of open, restricted, and other specific procedures. This streamlined approach allows contracting authorities to design procurement processes that best suit their requirements whilst maintaining fairness and transparency.
Transparency obligations are significantly enhanced, with mandatory publication of procurement pipelines, contract award notices, and contract performance data. The Act establishes a central digital platform where most procurement information must be published, improving market access for suppliers.
Dynamic markets replace framework agreements as the preferred route for repetitive purchasing, offering greater flexibility and easier supplier entry. The Act also introduces statutory grounds for excluding suppliers based on poor performance, not just criminal or professional misconduct.
Most Public Interest Entity (PIE) requirements are removed, though some restrictions on foreign ownership in sensitive sectors remain. The legislation emphasises outcomes over process, giving procurement teams more discretion whilst requiring clear justification for their decisions.
Transitional arrangements allow existing procurements to complete under previous rules, but all new procurements from October 2024 must comply with the Act. Training and system updates are essential for procurement teams to operate effectively under the new regime.