Major shake-up of the way public bodies purchase goods and services starts today
The Procurement Act 2023 has come into force today, shaking up the way more than 拢400bn a year is spent by public bodies on goods and services.
The legislation, which aims to create a 鈥渟impler and more transparent鈥� system to replace European Union rules post-Brexit, introduces several measures with key implications for the construction industry.
The act establishes a single digital platform for supplier registration in a bid to enshrine objectives for public procurement including delivering value for money, maximising public benefit, treating suppliers equally and acting with integrity.
Under the new system, buyers are required to have regard to the government鈥檚 National Procurement Policy Statement which sets out priorities for public procurement.
The bill also introduces new exclusion rules to tackle unacceptable behaviour and poor performance and arrangements to allow public authorities to buy 鈥渁t pace鈥� if necessary to protect life, health, public order or safety.
>>See also: The Procurement Bill 鈥� the key impacts for construction
The act introduces open frameworks, which unlike the closed frameworks in procurement law to date, would allow new suppliers to join after the framework has been set up. These frameworks can be for up to eight years and must be reopened during this time at least once.
Procurers are required to base their bids on the 鈥渕ost advantageous tenders鈥� (MAT) rather than the previous 鈥渕ost economically advantageous tender鈥� (MEAT). The aim is to encourage bids for work from firms to consider a broader view of what can be counted as value for money, including social vale.
The act also requires projects in excess of 拢5m to set at least three key performance indicators, which must be published in the contract details notice and then the supplier鈥檚 performance against those KPIs published at least every 12 months.
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