Procurement Act 2023 delayed

The Cabinet Office announced in a statement on 12 September 2024 that the implementation of the Procurement Act 2023 (the Act) has been delayed by four months. Originally due to come into force on 28 October 2024, the 'go-live' date of the Act has been delayed until 24 February 2025.

Why the delay? 

The announcement stated that the delay is to allow for a new National Procurement Policy Statement (NPPS) to be produced. This is a crucial element of the Procurement Act as it sets out the Government’s key strategic policy priorities so the existing NPPS will be withdrawn, and work will begin on a new NPPS which aligns with the new Labour Government's priorities. The new draft NPPS will then be put out for consultation before a 40-day passage through Parliament. Cabinet Office is anticipating that the NPPS will be completed by the end of February 2025.

However, there has been speculation that another reason for the delay is because the Central Digital Platform is not ready to be implemented. The Central Digital Platform is a new platform introduced by the Act which intends to enhance the current Find a Tender portal with a new Supplier Information System, enabling suppliers to submit their basic information in one place. 

What does this mean for contracting authorities? 

The delay may be welcomed by many, given that the late release of the statutory guidance and template documents meant that many contracting authorities were not as prepared as they would have liked. However, contracting authorities will now have the tricky decision of whether they will continue to procure using the existing regulations or to delay launching procurements for upcoming opportunities until after the new go-live date in February. Contracting authorities should consider the options available to them in light of the delay, for example whether they should launch a new procurement or alternatively if contracts should be extended (where permitted by the current regulations). It is important for contracting authorities to keep the lines of communications open with suppliers to understand their approach and intentions whilst we await the new go-live date. Should you require assistance in the lead up to the go-live date, our specialist procurement lawyers can provide expert advice on procurement strategy leading up to and after the go-live date.

Given that Registered Providers are also bound by the Act and the recent announcement by the Government that communications on the next five-year Affordable Housing Programme have been put on hold, it is no surprise that the delay to the Act only adds to further uncertainty for Registered Providers. However, Registered Providers together with other contracting authorities should use this extra time to make sure they are up to speed on the Act and prepare themselves and their procurement teams to ensure they are ready to go live in February 2025. Registered Providers should consider updating their template procurement documents, contracts and procurement policy to align with the requirements of the Act. Our expert procurement lawyers are on hand to assist with preparing template documents, delivering training on the Act or to assist with your procurement needs.

When it does come into force, the legislation aims to transform public sector goods and service purchases and seek to ensure greater transparency, value for money, maximum public benefit and integrity with equal treatment of all those involved in the bid making process. Whether the legislation does what it intends to do is a different story. There has been speculation as to whether the Act will in fact simplify matters or if the increased transparency and publication requirements will result in a significant task for procurement teams to keep up with the requirements.

If you require assistance in preparing for the implementation of the Act, please contact our specialist procurement team who are available to help.