Regulated orders | UK Regulatory Outlook for May 2024 – Osborne Clarke

Public Procurement Act 2023: commencement provisions and further guidance

Despite the suspension of the parliament’s work, the regulations necessary for the entry into force of the Public Procurement Law 2023 came into force on October 28, 2024. On May 23, the Public Procurement Law 2023 (Commencement No. 3 and transitional and savings provisions) Regulations 2024 came into force. These regulations set out legally an introduction date of 28 October 2024, implements the repeal of existing public procurement rules other than those relating to devolved procurement in Scotland, and includes transitional provisions that define the relationship between the current and new procurement regimes.

The Cabinet Office has also updated its guidance documents page, which now lists guidance documents across the four stages of the commercial pathway: Plan, Define, Procure and Manage. This page provides a complete list of guidance documents, both published and unpublished. The latest guidance published on May 24 was as follows:

• Guidelines: Contracts for the provision of municipal services

• Guidelines: Defense and Security Agreements

• Guidelines: Concession agreements

• Guidelines: Light touch contracts

• Guidelines: Contracts reserved for Supported Employment providers

For more information on what happened before the hung parliament ahead of the general election, see our Statistics.

Procurement Regulations 2024

On May 13, the House of Commons debated the draft Public Procurement Regulations for 2024 and adopted these regulations.

The House of Lords then approved these regulations on 20 May, meaning they have now been drafted and will come into force with the Public Procurement Act 2023 on 28 October 2024.

An updated statement on national public procurement policy has been published

The Declaration of National Procurement Policy was tabled in Parliament on May 13 and will enter into force with the Public Procurement Act on October 28, 2024.

Contracting authorities must take this statement into account within the meaning of Article 13 of the Public Procurement Law. The main priorities are:

1. Money value: Contracting authorities must prioritize value for money by optimizing the use of public funds and achieving the intended procurement outcomes, including wider socio-economic and environmental benefits. This is also clearly stated in the Act itself.
2. Social value: Authorities should consider outcomes such as the creation of resilient businesses, opportunities for high-quality employment and skills development, improving supply chain innovation and resilience, and tackling climate change and reducing waste. The social values ​​section, although much shorter than the previous NPPS, remains largely the same and there have been no significant changes.
3. Small and medium-sized enterprises (SMEs): Authorities should support and open up public procurement opportunities to SMEs by reducing and removing barriers to the procurement process to create a competitive market.
4. Commercial and supply delivery: Authorities should consider putting in place appropriate operational policies and processes to manage key stages of commercial delivery, in line with the principles and guidance set out in the Government’s Guidance series.
5. Purchasing skills and capabilities: Authorities should assess their organizational capabilities and staffing plans to ensure they have the necessary procurement and contract management skills and resources to effectively deliver value for money.

Guidance published by the Procurement Review Unit

The Cabinet Office has published guidance on the Procurement Review Unit (PRU) and how it will support the implementation of the Public Procurement Act 2023. The role of the PRU is to ensure compliance with the new procurement system and improve the practices of contracting authorities. PRU consists of three services:

• Public Procurement Review Service (PPRS). PPRS investigates supplier complaints about specific orders and makes recommendations for improvement.
• Procurement Compliance Service (PCS). PCK focuses on examining issues of systemic and institutional non-compliance and may formulate statutory recommendations for contracting authorities.
• Foreclosure Review Service (DRS). DRS manages exclusions and exclusions, ensuring that only suitable suppliers can bid for public contracts.

Overall, the PRU’s ambition is to raise standards in public procurement and increase the accountability of contracting authorities and suppliers in the UK.

DHSC updates commercial procurement pipeline

The Department of Health and Human Services has updated its commercial procurement schedule. This provides a forecast of potential commercial activity over the next 48 months with expenditure expected to be in excess of £2 million. Suppliers should review this pipeline to decide if there will be any future orders they wish to bid for.