Three months until new public sector procurement rules go live

There are just three months to go before rules governing public sector procurement, worth £300 billion per year, will change.

One of the largest shake ups to procurement rules in this country’s history, the new rules aim to create a simpler, more flexible and effective regime, enabling new entrants such as small businesses and social enterprises compete for and win more public contracts. 

The Cabinet Office says it will streamline the way that companies bid for public contracts, while also giving procurers more room for negotiating prices. 

In addition, they will allow tougher action to be taken on underperforming suppliers and exclude suppliers who pose unacceptable risks.

The new rules also focus on transparency so that the spending of taxpayers’ money can be properly scrutinised throughout the commercial lifecycle.

The Government Commercial Function – a cross-Government network procuring or supporting the procurement of goods and services for the Government – published the National Procurement Policy Statement (NPPS) earlier this year.

It accompanies the new Procurement Act, which became law in October 2023.

The NPPS sets out strategic priorities for public procurement and how contracting authorities can support their delivery and will come into effect on October 28.

The Cabinet Office says that contracting authorities should consider their organisational capability and workforce plans, with regards to the procurement and contract management skills and resources required to deliver value for money.

“They should be confident they have sufficient work force and capability to ensure taxpayers’ money is spent effectively and efficiently,” it added.

There are a number of professional standards against which contracting authorities can choose to benchmark themselves.

The Commercial Continuous Improvement Assessment Framework (CCIAF) produced by the Government Commercial Function with NHS England and the Local Government Association is appropriate for contracting authorities with a third-party annual spend profile of £100 million or above.