Will the Procurement Act 2023 make it easier to get government work?

The Procurement Act 2023 aims to make it easier for small businesses and social enterprises to bid and work for the public sector.

Public sector contracts are lucrative business, with the government and other bodies like the NHS, universities, and schools spending £300 billion a year.

This includes goods such as office equipment and hospital beds, works such as the building and maintenance of roads, and services such as adult social care and waste management.

The procurement process for government contracts has been historically difficult to navigate, and smaller businesses have often lost out to larger corporate firms. But with the value of government procurement with small businesses steadily increasing – accounting for almost a third of central government spend before leaving the EU – there’s plenty of opportunity to be had.

What is the Procurement Act 2023?

Introduced on 24 February 2024, the Procurement Act 2023 is a law changing the regulations governing public sector procurement.

Before leaving the EU, public procurement was governed by four sets of regulations. With the Procurement Act 2023, the UK is consolidating these into one set of rules.

These and other measures brought in by the act aim to make it simpler for companies to work with the public sector. It’s also purposefully attempting to make it easier for small businesses to bid for contracts.

How could small businesses benefit from the Procurement Act?

public sector organisations will be required to allocate a third of their spending for small SMEs
the tender writing process will be simpler – providing clearer guidelines and standardised templates
an emphasis on the importance of prompt payment – organisations will need to make payments within 30 days to ensure the cash flow of small businesses
businesses will be able to show proof of required insurance once they’ve been awarded a contract – meaning they won’t have to pay unnecessary insurance costs when bidding
smaller, more tailored contract lots will be mandated, meaning procurers and suppliers will be able to directly negotiate on price
the bidding process will be more transparent

What do small businesses need to do to win government contracts?

You can familiarise yourself with the full changes brought in by the act and how to work with it by exploring the government’s series of Knowledge Drop videos for suppliers.

To get your business ready to work with public sector contracts if you haven’t done so before, you could:

collect data on your previous contract performance
boost your brand
invest in relevant certifications for your sector

Networking is also a good way to boost your visibility.

Find a Tender service – how to register

As a result of the act, improvements have been made to the existing Find a Tender service to make it easier to find and bid for contracts.

You’ll now be able to store your core business details and use them for multiple bids, and search for opportunities and set up alerts for relevant new tenders. All you’ll need to do is register (or re-register on the new system) and enter your business’s information, such as:

your Companies House number
contact details, such as business address
two years of accounts
details of people who have control over or are involved with your business

More guides for small businesses

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