As we approach the go-live date for the Procurement Act 2023 it’s essential to stay informed and prepared for the upcoming changes.
This comprehensive FAQ guide is designed to provide Procurement Act 2023 guidance and ensure a smooth transition.
Dive in to learn more about the new procurement regulations and how they will effect your procurement procedures.
For 1 to 1 support get in contact with us directly.
Frequently Asked Questions
1. When will the new Central Digital Portal (CDP) be released?
The Cabinet Office will release the new Central Digital Portal (CDP) on October 28, 2024.
2. How will the new regulations affect ongoing procurement events that start before and end after the go-live date?
Procurements starting before October 27 will follow current rules until the event ends and the contract expires.
3. What is a Dynamic Purchasing System/Qualification System?
- Dynamic Purchasing System (DPS): A system mainly used in the public sector, and some utilities, allowing the preselection of a group of suppliers for specific needs. This group is awarded contracts through a mini tender. Suppliers can enter or exit at any time without requiring a contractual process.
- Qualification System: A pre-qualification process, such as the UVDB, allowing suppliers to complete a PQQ once. Subscribed organisations can then search and select bidders based on the PQQ information. Both systems are enabled under current regulations (PCR and UCR).
4. Do the regulations apply to subcontractors working on behalf of a utility to subcontract further services?
The regulations do not directly apply unless the subcontractor fits the criteria covered by the regulations. However, subcontractors can still be impacted, as exclusion factors can flow upwards in the supply chain, affecting the primary supplier’s participation in procurement events.
5. Is it necessary to consider the wider environmental costs and benefits of contracts in the new Act/Regulations?
The Procurement Act 2023 stipulates that Contracting Authorities when carrying out a procurement, must have regard to the importance of the following:
(a) delivering value for money;
(b) maximising public benefit;
(c) sharing information for the purpose of allowing suppliers and others to understand the authority’s procurement policies and decisions;
(d) acting, and being seen to act, with integrity.
Contracting authorities must also have regard to the national procurement policy statement, though this does not apply to private utilities.
Please refer to Schedule 3 Para 1 (3), para 12 and para 13 (9) of PA23 for exact wording.
6. Does choosing a supplier with a smaller carbon footprint count as discrimination against those not measuring their footprint?
The Procurement Act 2023 allows contracting authorities to set conditions of participation related to legal, financial, and technical capacities. The contracting authority will set the requirements in the contract at a level that they deem suitable and proportional. These conditions may include carbon footprint measures, depending on the authority’s requirements in their tender documentation.
Please refer to Para 22 of PA23 for exact wording.
7. How will this legislation affect SME sub-suppliers and their sub-suppliers?
The Act allows contracting authorities to require primary contractors to formally issue contracts to sub-contractors, though it is not mandated. Each contracting authority decides based on the nature of the contract. The new regulations aim to promote best practices, with certain noticing requirements, except for the private utility sector.
8. Will The Procurement Act 2023 affect public procurement in Scotland?
The Procurement Act 2023 covers the whole UK, but does not apply to devolved Scottish authorities. These will continue under existing Scottish procurement regulations. Authorities in Scotland can access UK frameworks and dynamic markets through cross-border procurement provisions. Changes to Scottish regulations are needed to enable devolved authorities to access UK commercial deals.
9. What defines a public and private utility under The Procurement Act 2023?
- Public Authority: Wholly or mainly funded by public funds or subject to public authority oversight without operating commercially.
- Public Undertaking: Subject to public authority oversight and operates commercially.
- Private Utility: Not a public authority or undertaking, and carries out a utility activity. Each contracting authority must determine their classification under the Act’s definitions.
In simple terms if a utility organisation is not funded out of public funds and does not have public authority oversight but have shareholders instead they are a considered a private utility.
Each contracting authority must determine their classification under the Act’s definitions. For exact wording, refer to Part 1, Paragraph 2(2) of The Procurement Act 2023.
10. Is a web link to the Central Digital Platform for registration available?
The Cabinet Office will release the link to the Central Digital Platform will go live on October 28, 2024. The Cabinet Office is considering earlier access, but no plans are confirmed yet.
11. Will signing up allow us to work with utilities companies or any organizations that use Achilles?
Signing up to the UVDB Powered by Achilles will make you visible to approximately 40 regulated utilities (gas, water, electricity, ports, airports, and heat). This visibility will remain similar post-October 28, 2024, but does not extend to other sectors supported by Achilles e.g. Rail. This would require a separate subscription.
12. How will this affect the Verify Audit?
The Verify protocols will remain unchanged during this update to the UVDB community.
13. Will suppliers need to register with the Central Digital Platform and get a Public Procurement Organisation Number (PPON)?
Yes, suppliers will need to register with the Central Digital Platform, obtain a unique identifier or PPON, and add this information to their Achilles profile.
14. Will the Central Digital Platform hold all our company information, policies, and insurance details?
No, the Central Digital Platform will only hold information defined within the Procurement Regulations 2024:
- Supplier’s basic information
- Supplier’s economic and financial standing information
- Supplier’s connected person information
- Supplier’s exclusion grounds information
The UVDB Powered by Achilles will continue to hold company information, policies, and insurance details, which must be kept up to date.
15. Will we be visible to any Contracting Authority issuing new tender opportunities?
For UVDB Powered by Achilles, the proposition remains the same. Buyers may use the new regulations and execute PA23-compliant searches within the system.
16. Will e-procurement providers use our profile on the CDP without requiring additional PQQs?
Upon registration, the system will generate an API key. Suppliers will need to provide this to the e-sender when responding to a Contracting authorities tender notice. Contracting authorities may still ask for further PQQs at their discretion. This is more likely if not using a Qualification system, as part of their tender process
17. Will Silver +Tier 1 members need to upgrade to another tier?
No, your membership tier will remain the same. You will only need to opt-in to be considered for tenders under the new Act and those under Utilities Contract Regulations (UCR) 2016.
Useful resources:
Procurement Act 2023 (legislation.gov.uk)
The Official Transforming Public Procurement Knowledge Drops – GOV.UK (www.gov.uk)
Transforming Public Procurement – GOV.UK (www.gov.uk)
Transforming Public Procurement (google.com)
Our Achilles Academy offers Procurement Courses on a number of topics including our upcoming Regulated Procurement Academy focusing on the new Procurement Act
