The implementation of the Procurement Act 2023, which was initially scheduled for today, has been postponed to 24th February 2025. This delay brings both challenges and opportunities for contracting authorities, suppliers and procurement specialists. Below we explore why the delay happened, what it means for stakeholders and how to make the most of the extended timeline.
Why Today Isn’t the Day
The delay is intended to allow time for a new National Procurement Policy Statement (NPPS). The current administration believes this is necessary to maximise public procurement’s impact on value for money, economic growth and social value. The previous NPPS was deemed insufficient for achieving these goals.
The extra time aims to ensure a smoother transition by revising the NPPS to better align with government objectives, leading to more effective procurement processes.
Is This a Good Thing?
The delay has pros and cons. Contracting authorities needing to procure imminently face a choice about whether to delay until the new Act or to continue with existing regulations. Each option carries risks, costs or delays, especially for those planning Open Frameworks.
Open Frameworks allow new suppliers to be added periodically, but they aren’t supported by current regulations. Authorities hoping to use these frameworks must either delay or modify processes to fit within the existing regulations.
For suppliers, the delay brings uncertainty about the work pipeline, affecting resource planning. Many have invested in training to align with the new Act. While retraining may be needed, the delay also allows more time for thorough preparation, which benefits complex supply chains.
The delay also allows authorities to update templates, policies and training programmes, supporting smoother implementation.
What You Should Be Doing Now
Use this extra time to refine your procurement approach. Review your planned pipeline and adapt your strategy for pre market engagement to align with the updated timeline.
Assess your organisation’s readiness by ensuring procedures, resources and skillsets are aligned with upcoming changes. Focus on supplier performance, transparency, environmental impact, and non financial criteria like local job creation.
Update documentation and training programmes to ensure readiness. Contract management should remain a strategic focus for effective procurement under the new regime. Use this extra time to be fully prepared for a successful transition in February 2025.
How CHIC Can Help
CHIC is well positioned to support its members to understand the implications of the Procurement Act 2023. CHIC is more than just a procurement specialists, our expertise in asset management means we offer tailored procurement solutions.
CHIC’s procurement pipeline has not been affected, as we still anticipate that our first framework under the new Procurement Act will be Merchant Services, to be released to market in quarter one of next year.
For further information on how CHIC can support your organisation, please contact a member of the team at [email protected] or call 0121 759 9990.
