The Procurement Act 2023 - guidance for suppliers and contractors
Updated 20 March 2025
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This publication is available at https://www.gov.uk/government/publications/rfca-supplier-guide/the-procurement-act-2023-guidance-for-suppliers-and-contractors
The Procurement Act achieved Royal Assent in the autumn of 2023.
This legislation will revolutionise the way public sector organisations purchase goods, services and works. It brings a wide range of benefits, including:
- Creating a more flexible commercial system that better meets the country’s needs while remaining compliant with international obligations.
- Opening up public contracts to new entrants such as small/medium business entrants and social enterprises.
- Taking action against underperforming suppliers to include excluding those who pose unacceptable risks.
- Embedding transparency throughout the commercial lifecycle so spending of public monies can be appropriately scrutinised.
As a business that may supply goods, services and works to the public sector, you need to be knowledgeable about the changes that took effect the 24 February 2025 and ensure you are compliant with all requirements.
Some items to note for doing business with Contracting Authorities such as RFCA:
- A central digital platform is the new Find a Tender Service. The existing Find a Tender Service has been expanded so that suppliers register and store their details in one place which can be used for multiple contract opportunities.
- The Procurement Act 2023 simplifies the bidding process with the public sector. All procedures are replaced with two: Open and Competitive Flexible.
- Frameworks will be more flexible.
- Contracting Authorities are bound by a duty to have regard to the particular barriers facing small and medium enterprises (SMEs) and voluntary, community and social enterprises (VCSEs), and to consider what can be done to overcome them throughout the procurement lifecycle.
There is a range of information and resources about the new regime available at Transforming Public Procurement.
Please look for the Knowledge drops Training Videos which are tailored specifically for suppliers, including SMEs and VCSEs.
Because the Act is so new, materials and resources will continue to be added to the Transforming Public Procurement page.
Suppliers and contractors are encouraged to check back on it frequently; and to engage with Contracting Authorities as/when appropriate.