Implications and Opportunities
The Procurement Act 2023 brings about a huge transformation for the public procurement regulatory landscape. While the act will have obvious implications regarding compliance, it also offers a large spectrum of business opportunities for those engaged in public sector procurement. This is clear to see with one in every three pounds of public money being spent on public procurement (£300bn). How organisations and public bodies implement the required changes will be the difference between mere compliance and embracing the Procurement Act as an opportunity for business growth. What can be a challenge for businesses is knowing when enough is enough and what can be done to utilise the regulatory landscape in order to create business opportunities.
Read on to find out how to achieve compliance excellence regarding procurement and supplier management whilst still creating business opportunities.
Understanding the changes
The Procurement Act 2023 represents a shift in the procurement process, particularly regarding supplier management. It consolidates the procurement regulations into one cohesive framework.
The overarching themes within the Procurement Act are the importance of achieving value for money and maximising public benefit, whilst still upholding the integrity of public procurement.
Contract authorities must have regard to:
- Delivering value for money
- Maximising public benefit
- Transparency and sharing information.
- Acting and being seen to act with integrity.
- Maintain equal treatment between suppliers.
- Try to remove barriers to SME participation in procurement
The main changes include:
A Single Set of Rules
The Procurement Act introduces a single uniform regime of rules which will incorporating Public Sector Regulations, Utility Regulations, Concession Regulations and the Defence Security Regulations, which will have sector specific differences.
Increased Transparency
The Procurement Act includes a strong emphasis on transparency by default . This is done through the publication notices at all stages of the procurement cycle from planning to contract expiry. This transparency is designed to make the procurement process more accessible and ensure fair competition.
Award Criteria:
The Procurement Act also introduces the concept of ‘most advantageous tender’ (MAT) which replaces the (MEAT) ‘most economical advantageous tender’ of the Public Contracts regulation 2015. This is to provide greater assurance to contracting authorities that a broader view can be taken of the criteria that can be used to evaluate tenders.
Supplier Inclusions and Exclusions:
Clear guidelines are set for excluding or selecting suppliers based on performance and legal compliance. This encourages ethical and responsible business practices. What is interesting is that suppliers can be excluded by performance of their associated suppliers and subcontractors. This highlights the complexity and essential need of supply chain transparency.
Compliance as a Stepping stone
Navigating the changes put forward by the 2023 Procurement Act can be extremely challenging. What can be even more so is turning this compliance into a strategic approach for competitive advantage and business growth.
Robust Data Management:
With the acts focus on transparency there becomes a requirement for accurate data storage and management. Achilles approach to supply chain visibility ensure that the relationship between supplier and buyer is clear and manageable. The MyAchilles Platform enables you to view the outcomes of Achilles’ rigorous supplier evaluation, supply chain risk assessment and rating process[TR1] . Our entire approach enables public sector business and those working with them to meet the acts increased transparency and data requirements. As well as this, it positions businesses as reliable, efficient, and forward thinking in the public procurement landscape. This will significantly support in enhancing competitive advantage.
Enhancing Cybersecurity
The acts emphasis on transparency and data integrity means that cybersecurity is a key component of compliance. Businesses and public sector organisations must make sure that the data that they collect is protected against cyber vulnerabilities to align with the act. Achilles is an BSI Accredited business and our approach to managing cyber risk means protecting organisations from financial and reputational loss and well as compliance risk that cyber-attacks can bring.
Fair and Equitable Supplier Opportunities
The Procurement Acts focus on non-discriminatory practices in supplier selection and management as well as encouraging innovation and sustainability. This highlights the need for inclusive and transparent procurement strategies. The MyAchilles Platform enables the management of supply chains and supplier improvements on a global scale. Additionally the prequalified supplier network provides a comprehensive network of suppliers who meet the highest standards in health and safety, ESG, sustainability, human rights and health and safety. This means that the Achilles approach supports compliance through ethical and transparent procurement. It also creates business opportunity by connecting with pre-qualified suppliers to enhance supply chain agility and reduce risk.
Operational Excellence to create Opportunity
By complying with the core foundations of the Procurement Act 2023 you will not only meet regulatory requirements. It will also by default support in business growth and opportunity.
Here’s how:
Streamlined procurement process
The act offers a larger amount of flexibility when it comes to public procurement. This allows for more dynamic procurement strategies. In terms of business opportunity there is the chance for organisations to become more efficient and responsive to changing market needs. Achilles supplier information, risk assessment tools and audits make this possible. With supply chain visibility, procurement processes become proactive rather than reactive. This enables companies to see potential problems and enables contingency planning to mitigate risks. This will have a positive impact on the cost and resource implications that go along with those risks.
Training and Knowledge
Ensuring that procurement practitioners and their stakeholders are well-trained and knowledgeable about compliance requirements is important. Regulation change means that organisations need to know how to apply the new flexible processes without inadvertently breaching the act Regular training sessions, workshops, and updates can help build a culture of compliance within the organisation. The Achilles Academy offers CPD accredited regulated procurement courses to help businesses understand and navigate whilst achieving high performing teams. We have over 30 years experience in the provision of UK & EU Procurement legislation and practitioner knowledge training and consultancy services in the UK.
Risk management as a value proposition
Through the Achilles process of Due Diligence you can not only comply with the Act, but also position yourself as trustworthy and resilient. These are some of the qualities that are attractive in the public procurement market.
Navigating contractual obligations and nuances
The Acts expanded options for contract termination highlight the importance of strong supplier management strategies. The vast supply chain data offered through the MyAchilles Platform can offer business opportunities in terms of helping to negotiate more favourable terms and avoid potential hurdles.
Conclusion
The introduction of the Procurement Act 2023 highlights a shift in the UKs public procurement landscape. As well as challenges, it also offers a number of opportunities. For organisations to succeed under the new act they not only need to comply, but also seize the opportunities to improve efficiency and achieve business growth.
Achilles offers a range of solutions that can support in ensuring compliance as well as positioning your organisation as a leader within the public procurement domain.
Contact us today to discuss how the Procurement Act 2023 will impact your organisation and how we can support.
