The much-anticipated Procurement Act 2023 will go live on 24 February 2025. This is great news for SMEs because they will finally be able to reap all the benefits the new regime brings. These include reducing the barriers for SMEs to enter the public procurement market and levelling the playing field by shifting focus from price only to overall value.
A major factor is the now mandatory social value requirement. Small businesses are often able to provide more relevant and effective social value initiatives in local communities, making them favourites when bidding on local UK government contracts.
We’re going to look at how SMEs can hone their procurement strategies to more fully align with government goals and objectives and increase their chances of winning contracts under the new Procurement Act in 2025.
New Public Procurement Regulations For UK Suppliers
Several key changes in the new regulations for public sector contracts are particularly important for SMEs. We will look at three of the primary changes affecting suppliers when they bid on contracts.
1) Simplified tendering process
The Act does away with a lot of red tape so SMEs and VCSEs have more opportunities to engage with contracting authorities and bid on public procurement contracts. This includes the introduction of a new competitive flexible procedure that facilitates negotiation and collaboration in the tendering process.
Commercial frameworks are also more open, giving SMEs more chances to bid on government contracts.
2) Emphasis on transparency
The new Act emphasises transparency across the entire public sector procurement process. This ensures accountability every step of the way, but it also ensures that all stakeholders, including suppliers, have access to the same information that is updated in real-time. The idea is to create a system that embraces non-discrimination and equal treatment for everyone.
Accessibility is facilitated through a new Central Digital Platform (CDP), which supports the government’s contracts finder platform.
The CPD also plays a role in the simplification process by making it easier for suppliers to find and bid on contracts. For example, registration is quick and easy, you can create and store templates, and save your business details. This helps to save valuable time when bidding on different contracts because you don’t have to re-enter the same information every time.
Note: Public sector suppliers must register to access the CDP, even if they are registered on Find a Tender. This is a once-off thing.
3) MEAT instead of MAT
In the days of yore (before 24 February 2025), key decision-makers focussed on price – the Most Advantageous Tender (MAT) – when selecting suppliers.
The new Act requires buyers to view the bid holistically. Price is just one factor to be considered. Social value, covered in the Social Value Act 2012, isn’t a polite suggestion anymore. It’s mandatory and must have a minimum weight of 10% in the evaluation and selection process.
This comprehensive assessment is based on the Most Economically Advantageous Tender (MEAT).
In addition to social value, public sector organisations must also consider sustainability when awarding contracts.
Sustainable procurement
Sustainability in procurement isn’t just about the tendering process. It looks at things like ethical supply chains and day-to-day operations. For example, sub-contractors associated with child labour; and using renewable energy and waste management wherever possible.
Sustainability also supports the government’s commitment to achieve Net Zero by 2050. It’s a good idea to introduce eco-friendly changes to your business operations and implement or collaborate on sustainability and social value programmes so you are fully prepared when relevant tenders roll around.
One of the biggest benefits of complying with social value and sustainability requirements in the Procurement Act is the boost to your reputation. Not only do you add value to your products/services, but you also future-proof your business against upcoming compliance requirements in the new Act.
How To Get A Competitive Edge
If you want to get and maintain a good headstart over your competitors, these four tips are for you.
- Register on tender alerts platforms: Tender alerts platforms like Supply2Gov are designed to make the public sector procurement process easier by providing a range of tools to enhance and support your bid proposals – in addition to delivering relevant contracts, of course.
- Meet compliance requirements: This includes national legislation and local government and industry-specific regulations. It’s also a good idea to comply with European Commission procurement guidelines if you want to collaborate on contracts with EU member states.
- Rework your proposal templates: Edit all the templates stored on your platform as per the new procurement regulations – double-check compliance details included in the tender.
- Think outside the box: Social value and sustainability requirements present exciting opportunities to revisit your products/services and see if you can come up with new, innovative designs or solutions that save you valuable time and money, reduce your impact on the environment, or uplift your local community (employing more local residents, for example).
Follow these tips and when the new Act finally comes into being, you’ll already have adapted your business to capitalise on the changes. This gives you an edge when it comes to navigating the government’s procurement changes in the UK come the 24th of February 2025.
Register on Supply2Gov and start leveraging the new regulations in the Procurement Act to drive your business forward.