Public procurement accounts for one in every three pounds of public money spent, amounting to approximately £300 billion annually.
Following the UK’s departure from the EU, the Government has enacted new procurement legislation to meet the changing needs of the country.
The new set of rules will reform the way goods and services are purchased by the public sector and will come into effect from October 2024.
What are the main objectives of the Act?
The Act has been heralded as a landmark piece of legislation that will create a simpler, more flexible, and transparent system - to the benefit of both buyers and suppliers.
Ultimately, the reforms are designed to prioritise value for money, maximise benefits for the public, increase transparency, and ensure integrity throughout public procurement practices.
How will the new rules impact suppliers?
The Act aims to make it is easier for businesses, especially SMEs, to enter the public sector supply chain – achieving greater access to public sector contracts.
The regime includes a new duty on contracting authorities to consider the barriers facing SMEs when bidding for opportunities, and what can be done to overcome them.
To improve market engagement, larger contracting authorities will have to publish pipelines of their future procurement plans so that SMEs can form consortia and properly prepare for bids.
The new rules take tougher action on underperforming suppliers and introduce a new 8-year “open” framework.
What will the changes mean for public sector organisations?
This overhaul of public procurement rules marks a significant shift for the public sector and their procurement teams, potentially adding new administrative burdens and upskilling into the mix.
Authorities will need to ensure their procurement processes encourage new entrants, such as small businesses and social enterprises, to bid. This may include dividing large contracts into lots, to attract SME tenders.
Contractors will also have to evaluate bids to identify the "Most Advantageous Tender" (MAT), expanding the definition of value for money to account for wider social, economic, and environmental benefits, typically referred to as ‘social value’.
There are new legal requirements to publish transparency notices across contracts and buyers will need to abide by 30-day payment terms throughout supply chains.
How can Bloom help you navigate these changes?
Bloom’s unique approach to procurement is perfectly positioned to help our public sector buyers and supplier community capitalise on the opportunities created via the Act.
For our public sector buyers
Since 2012, we’ve delivered over 10,000 procurement processes, collectively worth more than £1 billion, through our unique and fully compliant NEPRO3 framework.
Our versatile marketplace of over 5,000 professional service suppliers covers 20 categories and over 380 subcategories of spend – allowing us to meet even the most niche of requirements.
We’ve provided hundreds of public sector organisations with a rapid route to market (in as little as 13 days) and average savings of 14% against budget.
For our accredited suppliers
Maximising social value has always been at the heart of our mission. Which is why, thanks to our vendor neutral approach, 71% of the contracts awarded through our marketplace are secured by SMEs and the Third Sector.
We also recognise the disruption late payments can cause for smaller businesses. We’re proud to have made 7,258 payments last year, with an average payment time of just 27.50 days – surpassing the new 30-day payment terms.
Our managed service handles the entire procurement process for both our buyers and suppliers, too, ensuring that they can focus on what they do best – delivering for the public and driving growth.
To learn more about what Bloom can do for your organisation, and to successfully navigate the new Procurement Act, contact our team today.
