The Procurement Act – why we should adopt a business as usual approach
With the new UK Procurement Bill expected to become law early next year, many government departments might be tempted to delay significant tenders until the new rules come into effect. However, Kay Sugg, Head of Bid Management – Public Sector at Exponential-e, cautions against this approach, highlighting several compelling reasons why teams should not wait and adopt a ‘business as usual’ mentality.
The Procurement Act was expected to go live in October 2024 but will now commence February 2025. It aims to create a simpler, more flexible and effective procurement process across the public sector. It has been designed to open up public procurement to a broader range of suppliers, including small and medium-sized enterprises (SMEs). Additionally, the Act seeks to take tougher action on underperforming suppliers, exclude those who pose unacceptable risks, and embed transparency throughout the commercial lifecycle. These changes are intended to ensure that the spending of taxpayers’ money is subject to properscrutiny, which is crucial to building public trust in government operations.
These changes are undoubtedly welcome and much needed across the public sector, but there could be a temptation from departments to delay going out to tender on significant projects, while we wait for the changes to come into law. One of the most critical reasons to proceed with tenders under the existing procurement rules is to avoid unnecessary delays. Government projects, particularly large-scale, often come with tight deadlines linked to policy priorities, public service delivery, or even international obligations. Delaying these projects could result in missed deadlines, financial penalties, reduced public trust and disruption in services.
It is also important to recognise that while the new Procurement Act is anticipated to go live in February 2025, it has already been pushed once by four months, so the exact timing of its implementation still remains uncertain. The legislative process can be unpredictable at times, with potential delays in passing the bill or finalising the necessary guidance for its implementation. Even after the Act becomes law, there will be a period of adjustment as teams across government departments familiarise themselves with the new rules and procedures.
Government departments often manage multiple, interconnected projects that rely on the completion of each stage, to maintain momentum and ensure successful delivery. Delaying a significant tender can disrupt the entire project timelines, affecting the continuity and even the stability of public service delivery. For example, many large-scale government projects, such as infrastructure developments or digital transformation initiatives, are highly interdependent. A delay in tendering for one component of a project has a ripple effect that slows the entire process, leading to escalating costs and potentially compromising the quality of the final outcome.
Current procurement rules and established Crown Commercial Service (CCS) frameworks, while due for an update, still provide a robust and legally sound framework for tendering. These rules have been used effectively for years to deliver complex projects and there is no reason to believe they cannot continue to do so effectively until the new Act comes into force. By continuing with tenders under the existing rules and CCS frameworks, departments can confidently ensure that their projects stay on track, within budget and are aligned with their strategic objectives.
The public sector is often called out for its slow decision-making processes, which can lead to inefficiencies and delays in the delivery of essential services. There’s a chance that delaying procurement decisions could reinforce this perception. By moving forward with tenders under the current rules and compliant frameworks, departments demonstrate a commitment to efficiency and progress. This proactive approach helps maintain momentum and public confidence, ensuring that government operations continue to meet the needs of citizens without unnecessary disruption.
While the new Procurement Act is expected to introduce several important changes, it is unlikely to completely overhaul the fundamental principles of public procurement. The core value of transparency, fairness and value for money are expected to remain central to the procurement process, even under the new legal framework.
Departments can tender under the current rules with confidence, knowing that they will be able to adapt to any new requirements when the Act comes into effect. Most of the anticipated changes are expected to build on existing practices rather than replace them entirely. By starting projects now, departments can ensure continuity and comply with the new Act once it becomes law – positioning themselves to smoothly transition to the new procurement framework when it comes into effect.
By continuing to tender under the current rules, departments can ensure continuity, maintain public confidence, and remain adaptable to future changes. Doing so will help government departments safeguard the stability of their project deadlines but also demonstrate their adaptability and the readiness for the future changes that the new Procurement Act will bring.
A ‘“business as usual’” approach to overcoming any reticence of moving projects forward during this transitional period is what’s needed until the new Act comes into force next year.
Mature and experienced suppliers to the UK public sector have proven track records in delivering solutions and services to high standards across the Crown Commercial Service frameworks and lots and can continue to guide departments through their transformation projects with confidence from now until February 2025.
