Public sector procurement is always evolving.
With increasing pressure to drive efficiencies, demonstrate value for money, and keep pace with fast-paced digital transformation, choosing the right procurement approach is critical.
Frameworks provide a structured, compliant way to access the best suppliers and solutions, but navigating them effectively requires a strategic approach. Before we dive into the key changes introduced by the Procurement Act 2023, here are a few things to consider when refining your procurement strategy:
- Are you adopting an outcome-based procurement approach? Rather than specific technologies or vendors, be laser guided on the outcomes you want to achieve and let suppliers be creative and innovative in the solutions they offer. They are the experts at delivering on outcomes, so let them do it!
- Are you focusing on long-term value? Procurement decisions should consider innovation, flexibility, and future scalability—not just cost.
- Are you engaging with suppliers early? The best outcomes come from collaboration. Speaking to suppliers before formal procurement can ensure solutions are tailored to your needs and your business problems are understood from the outset. This will enable you to truly choose the best solution.
With that in mind, let’s explore the four key changes from the Procurement Act 2023 that public sector buyers need to implement now.
4 Changes Public Sector Buyers Need to Implement Now
The Procurement Act 2023 came into effect on 24th February 2025, replacing the Public Contracts Regulation 2015. The new legislation introduces key changes designed to improve transparency, efficiency, and fairness in public sector procurement. If you’re involved in procurement, here are four critical changes you need to act on now.
1. Awarding Contracts Based on the Most Advantageous Tender (MAT)
What’s changed? Contracts must now be awarded based on the Most Advantageous Tender (MAT), rather than just the lowest price (Most Economically Advantageous or MEAT). This means factors such as service quality, social value, and community benefits must be given greater weight in decision-making.
What you need to do:
- Update your evaluation criteria to ensure broader factors are considered beyond cost.
- Ensure procurement teams are trained on assessing value holistically.
- Align your processes with the National Procurement Policy Statement (NPPS), which emphasises social impact, environmental targets, and community benefits.
2. Greater Transparency in Procurement Activities
What’s changed? There is now a legal requirement for public sector organisations to provide more detailed procurement information, including:
- Pipeline notices for contracts exceeding £2 million within the next 18 months.
- Records of pre-tender engagements, including consultations and advice received.
- Clear explanations of how early engagement has influenced final tender requirements.
What you need to do:
- Implement a structured approach for publishing procurement plans.
- Ensure all pre-tender interactions with suppliers are well-documented and made available to all potential bidders.
- Develop clear internal guidelines for maintaining compliance with the new transparency rules.
3. Prompt Payment Provisions
What’s changed? The Act introduces stricter measures to ensure suppliers receive payments on time, improving cash flow and financial stability across the supply chain.
What you need to do:
- Review and, if necessary, adjust internal payment processes to ensure compliance with new requirements.
- Regularly monitor payment performance to suppliers and address any delays.
- Encourage procurement teams to consider a supplier’s payment track record when awarding contracts.
4. Proactive Supplier Engagement and Market Shaping
What’s changed? Public sector organisations are now encouraged to engage with suppliers earlier in the procurement process. This means pre-market engagement should be conducted transparently, ensuring all bidders have access to the same information.
What you need to do:
- Begin engaging with suppliers earlier to understand market capabilities and refine specifications before going to tender.
- Ensure pre-tender discussions are documented and shared fairly among all potential bidders.
- Use open frameworks to introduce greater competition and allow new suppliers to join during a contract’s lifecycle.
Next Steps for Public Sector Buyers
The Procurement Act 2023 represents a shift towards a more strategic and transparent procurement process. By implementing these changes now, public sector buyers can ensure compliance while maximising value for their organisations and communities.
- Review existing procurement policies and align them with the new requirements.
- Educate your team on the updated procurement processes.
- Start planning early engagement strategies with suppliers.
These changes are designed to make procurement fairer, more efficient, and more beneficial to the public sector. Now is the time to adapt and ensure your organisation is ahead of the curve.
It’s worth noting that any existing running commercial agreements or frameworks are not retrospectively subject to the Procurement Act 2023 and are still covered by the terms and conditions they were awarded under, until they expire.
Getting the Best Outcome from Your Procurement Process
To maximise value when using a framework, follow these steps:
- Define Your Requirements Clearly: Consider factors like scalability, security, integration with existing systems, and long-term suitability.
- Engage Early with Suppliers: Framework suppliers are there to guide you. Speaking with them early can help tailor solutions to your needs.
- Use Pre-Approved Solutions: Many frameworks have ready-to-go solutions that reduce time to deployment and ensure best practice.
- Leverage Expert Support: Frameworks often provide dedicated teams to help navigate the procurement process.
Building a Strategic Partnership
Choosing the right supplier isn’t just about ticking procurement boxes—it’s about forming a long-term, trusting partnership that helps you evolve while navigating whatever the future may hold. The best suppliers don’t just provide technology; they are there to advise on the right solution to deliver the right outcomes.
Drive efficiency, improve service delivery, and support your digital transformation goals.
Gamma has a rich history of partnering with a wide range of public sector organisations across multiple frameworks, providing future-proof solutions designed for efficient, secure, long-term success. Our focus is on relieving your technology burden and letting you focus on you delivering for your citizens and service users – true value for money!
If you’re looking for a partner you can trust, with a straightforward, compliant route to advanced communication services, we’re here to help.