Knowledge Drop for Contracting Authorities Part 1 of 6

Summary

The video script offers an in-depth look at the Procurement Act 2023, focusing on its purpose and impact on Contracting authorities. It outlines the Act's new objectives, emphasizing flexibility, transparency, and maximizing public benefit. The series aims to improve understanding of the Act's key changes, benefits, and the need for collaborative implementation across organizations, including specific guidance for SMEs and compliance with international obligations.

Takeaways

• 📚 The Procurement Act 2023 is a new legislation aimed at simplifying and modernizing public procurement processes in the UK, providing greater flexibility and innovation.
• 🏛 It applies to Contracting Authorities across England, Wales, Northern Ireland, and those with reserved functions in Scotland, with some exemptions for specific sectors and contracts.
• 💡 The Act emphasizes the importance of transparency, integrity, and equal treatment of suppliers, as well as the need for Contracting Authorities to consider the impact on small and medium-sized enterprises (SMEs).
• 🌐 Post-Brexit, the UK has an opportunity to redefine its procurement rules, focusing on increased flexibility, innovation, and broader value for money, while maintaining international obligations such as the WTO GPA.
• 💼 The Act introduces new procurement objectives, including delivering value for money, maximizing public benefit, transparency, acting with integrity, and treating suppliers equally.
• 🔍 Contracting Authorities must consider the National Procurement Policy Statement (NPPS) and Wales Procurement Policy Statement (WPPS) when undertaking procurements, aligning with national and local strategic priorities.
• 🔄 The Act allows for greater collaboration between Contracting Authorities and suppliers, encouraging the sharing of information and the consideration of social value benefits in procurement decisions.
• 🚀 The Act is designed to drive cultural and behavioral change within organizations, requiring a collaborative approach across various departments, including procurement, finance, and project management.
• 🛡️ There are specific exemptions and light-touch regimes for certain utilities, defense, security, and healthcare contracts, reflecting the unique requirements of these sectors.
• 🛍️ The Act maintains compliance with international obligations, ensuring UK businesses have access to global procurement opportunities and reciprocal market access.
• 📈 The Act is expected to improve access to opportunities for businesses, especially SMEs, and drive social, environmental, and economic benefits on a local and national scale.

Q & A

What is the purpose of the Procurement Act 2023?

The Procurement Act 2023 aims to provide an overview of the legislation, increase flexibility in the procurement process, encourage innovation, improve transparency, and take a broader approach to value for money for the UK taxpayer, while also driving greater social, environmental, and economic benefits on a local and national scale.

Who is the target audience for the Procurement Act 2023 knowledge drop series?

The target audience includes organizational leaders in Contracting authorities, those who oversee functions with commercial and procurement teams, and individuals involved in the management of contracts or suppliers.

What are the key changes introduced by the Procurement Act 2023 compared to previous regulations?

The Procurement Act 2023 introduces a shorter, more simplified set of rules that offer Contracting authorities greater flexibility to undertake procurement activities that are fit for purpose and meet organizational needs as well as local and national objectives.

How does the Procurement Act 2023 support cultural and behavioral change within organizations?

The Act requires executive and political leaders, project managers, finance colleagues, and those involved in tender processes or contract management to understand the changes it brings, enabling them to work more effectively with procurement or commercial colleagues to embed the changes across the organization.

What is the geographical scope of the Procurement Act 2023?

The Procurement Act 2023 applies to Contracting authorities in England, Wales, and Northern Ireland, and to those with reserved functions in Scotland. However, the Scottish government will continue to have its own legislation for devolved Scottish authorities.

Are there any specific exemptions to the Procurement Act 2023?

Yes, certain utilities, defense and security, and health care contracts are exempt from some requirements of the Procurement Act 2023, reflecting and building upon exemptions provided in previous regulations.

Why was a new Procurement Act needed?

The new Procurement Act was needed following the UK's exit from the EU to transform public procurement rules, increasing flexibility, and being more innovative while ensuring compliance with international obligations such as the WTO GPA.

Who does the Procurement Act apply to?

The Procurement Act applies to Contracting authorities, which are defined as public authorities, public undertakings, or private utilities, typically including central government departments, local authorities, NHS trusts, schools, universities, housing associations, and health bodies.

What are the new procurement objectives introduced by the Procurement Act 2023?

The new procurement objectives include delivering value for money, maximizing public benefit, ensuring transparency, acting with integrity, treating suppliers equally, and having regard to small and medium-sized enterprises (SMEs) participation.

What is the role of the National Procurement Policy Statement (NPPS) and the Wales Procurement Policy Statement (WPPS)?

The NPPS and WPPS set out the national and strategic priorities for public procurement, which Contracting authorities must consider alongside local priorities when carrying out procurements.

How can Contracting authorities ensure they are compliant with the Procurement Act 2023?

Contracting authorities should review the relevant fact sheets, understand the exemptions, and consider the procurement objectives and policy statements in their procurement processes. They should also engage in further resources and training to support implementation of the Act.

Outlines

00:00

📘 Overview of the Procurement Act 2023

This paragraph introduces the knowledge drop series on the Procurement Act 2023, aimed at leaders in contracting authorities and those overseeing procurement functions. It covers the purpose of the series, the key changes between previous regulations and the Procurement Act, the benefits, and actions needed to implement the act. It emphasizes the importance of understanding these changes for effective collaboration across organizations and the need for cultural and behavioral changes to exploit the act's flexibilities.

05:01

📊 Applicability and Exemptions of the Procurement Act

This paragraph explains the applicability of the Procurement Act to contracting authorities in England, Wales, Northern Ireland, and those with reserved functions in Scotland. It details specific exemptions for certain utilities, defense, security, and healthcare contracts. It highlights the opportunity to transform procurement rules post-EU exit, aiming to increase flexibility, transparency, and value for money while promoting access for businesses and driving social, environmental, and economic benefits.

10:02

📜 New Procurement Objectives and Compliance

This paragraph outlines the new procurement objectives introduced by the Procurement Act, which include delivering value for money, maximizing public benefit, ensuring transparency, acting with integrity, and treating suppliers equally. It emphasizes the importance of these objectives in procurement decision-making and explains the new duty to consider the participation of small and medium-sized enterprises (SMMEs). It also discusses the National Procurement Policy Statement and the Wales Procurement Policy Statement, which set out strategic priorities for public procurement.

Keywords

💡Procurement Act 2023

The 'Procurement Act 2023' is the central subject of the video, representing a new set of regulations governing public procurement in the UK. It is designed to increase flexibility, innovation, transparency, and value for money in the public sector's purchasing activities. The Act applies to Contracting Authorities, which includes a range of public bodies, and aims to drive social, environmental, and economic benefits at both local and national levels. The script mentions that the Act offers greater flexibility and simplifies the procurement process compared to previous regulations.

💡Contracting Authorities

In the context of the video, 'Contracting Authorities' refers to the entities that are subject to the Procurement Act 2023, such as public authorities, public undertakings, or private utilities. These typically encompass central government departments, local authorities, NHS trusts, and certain educational and housing associations. The Act defines specific roles and responsibilities for these authorities in conducting procurement activities, emphasizing the need for transparency, integrity, and equal treatment of suppliers.

💡Procurement Objectives

The 'Procurement Objectives' outlined in the Act serve as the guiding principles for all public procurement activities. They include delivering value for money, maximizing public benefit, ensuring transparency, acting with integrity, and treating suppliers equally. The video emphasizes the importance of considering these objectives throughout the procurement decision-making process to ensure contracts not only meet financial criteria but also contribute to broader social and environmental goals.

💡National Procurement Policy Statement (NPPS)

The 'National Procurement Policy Statement (NPPS)' is a document that sets out the strategic priorities for public procurement at the national level in England. It is mentioned in the script as a tool for ministers to guide Contracting Authorities in aligning their procurement activities with national goals. The NPPS is subject to change following consultation and parliamentary approval, highlighting its role in adapting to evolving policy priorities.

💡Wales Procurement Policy Statement (WPPS)

The 'Wales Procurement Policy Statement (WPPS)' is similar to the NPPS but specifically tailored for Wales. It sets out the strategic direction for public procurement in Wales, including principles and intended outcomes that devolved Welsh authorities must consider. The script indicates that the WPPS will help to ensure that procurement activities in Wales are aligned with local priorities and contribute to the broader strategic direction set by the Welsh government.

💡Public Expenditure

The term 'Public Expenditure' in the video refers to the financial outlay by the government on various services and projects. It is highlighted that public procurement accounts for around a third of all public expenditure, emphasizing the significance of the Procurement Act 2023 in managing a substantial portion of the UK's budget and ensuring value for taxpayers' money.

💡Small and Medium-sized Enterprises (SMEs)

The video discusses the importance of considering 'Small and Medium-sized Enterprises (SMEs)' in the procurement process. The Act introduces a duty for Contracting Authorities to have regard to SME participation and to reduce barriers they may face. This includes considering whether tender response times are realistic for smaller suppliers who may not have dedicated bidding teams, thus promoting a more inclusive procurement environment.

💡Exemptions

The script mentions 'Exemptions' to the Procurement Act, which are specific instances or types of contracts that are not subject to all the requirements of the Act. These exemptions apply to certain authorities, contracts in utilities, defense, security, and healthcare, reflecting the unique requirements and sensitivities of these sectors. Understanding these exemptions is crucial for Contracting Authorities to ensure compliance with the Act.

💡Post-Brexit Procurement Rules

The term 'Post-Brexit Procurement Rules' refers to the opportunity the UK has to reform its public procurement regulations following its exit from the EU. The video explains that the UK is no longer bound by EU directives, allowing for the creation of the Procurement Act 2023, which aims to be more flexible and innovative in the procurement process, while also broadening the approach to value for money.

💡Transparency

In the context of the video, 'Transparency' is one of the core procurement objectives. It involves sharing information to allow suppliers and others to understand policies and decisions. The Act embeds transparency obligations throughout its regulations, with clear publication requirements to ensure an approach of transparency by default, which is crucial for maintaining trust and integrity in the procurement process.

💡Value for Money

The concept of 'Value for Money' is a traditional yet redefined objective within the Procurement Act 2023. It goes beyond just cost considerations, encouraging Contracting Authorities to consider the best mix of quality and price over the whole lifetime of contracts. The video script suggests that authorities should think about what value means to their organization and the community they serve, including potential social value benefits that could be achieved by the contract.

Highlights

Introduction to the Procurement Act 2023, designed for organizational leaders and those overseeing commercial and procurement teams.

The Act provides an overview and aims to increase awareness and understanding of key changes from previous regulations.

The new Act offers benefits and requires collaborative work across organizations, beyond just procurement and commercial teams.

Significant differences from previous regulations, offering simplified rules and greater flexibility for Contracting authorities.

The need for executive and political leaders, project managers, and finance colleagues to understand the changes brought by the Act.

A separate supplier knowledge drop is available to understand the impact of changes on business relationships.

Public procurement is a devolved issue with Welsh ministers and Northern Ireland choosing to join the Procurement Act.

The Act applies to Contracting authorities in England, Wales, Northern Ireland, and those with reserved functions in Scotland.

Certain exemptions apply to specific sectors such as utilities, defense, security, and healthcare contracts.

The rationale behind the new Procurement Act, including the opportunity to transform public procurement rules post-EU exit.

The Act applies to a broad definition of Contracting Authorities, including public authorities, public undertakings, and private utilities.

Maintaining compliance with international obligations, such as the WTO GPA, to ensure UK businesses have access to global procurement opportunities.

Introduction of new procurement objectives focusing on value for money, public benefit, transparency, integrity, and equal treatment of suppliers.

A new duty for Contracting authorities to consider the participation of SMEs and reduce barriers they may face.

The power for ministers to publish a National Procurement Policy Statement (NPPS) and Wales Procurement Policy Statement (WPPS).

Contracting authorities must consider the relevant NPPS and WPPS priorities alongside local priorities in their procurements.

The material is for learning and development purposes and should not be relied upon as legal advice.

Transcripts

procurement act 2023 knowledge drop

series for Contracting

authorities understanding the purpose of

the procurement act part one of

six

introduction this knowledge op series is

designed to provide an overview of the

procurement act 2023 and is aimed at

organizational leaders in Contracting

authorities and those who may oversee

functions which include OAS directly

with commercial and procurement

teams in this series of knowledge drops

when we talk about the procurement act

we're referring to the procurement Act

and the regulations made under

it in this knowledge drop we will

cover reasons for the procurement act

exemptions the procurement objectives

and the national procurement policy

statement by the end of this knowledge

drop series you will have a greater

awareness and understanding of the key

changes between the previous regulations

and the procurement act the benefits

that the procurement act will

offer how requirements of the

procurement act extend beyond

procurement and Commercial teams and

they need to work collaboratively across

your

organization what actions you will need

to take and consider to implement the

procurement act and what further

resources and training are available to

support your organization to drive

cultural and behavioral change to

exploit the flexibilities of the

procurement

act there are significant differences

between the procurement Act and the

regulations which preceded it the

procurement Act is now a shorter more

simplified set of rules which offer

Contracting authorities greater

flexibility to undertake procurement

activities that are fit for purpose and

meet organizational needs as well as

local and National

objectives in order to take full

advantage of these flexibilities and

support the culture Al and behavioral

change needed executive and political

leaders project managers Finance

colleagues and those who commission

Services support tender processes or who

are involved in the management of

contracts or suppliers all need to

understand the changes brought about by

the procurement act this will help you

to work more effectively with your

procurement or commercial colleagues to

embed the changes across your

organization a separate supplier

knowledge drop is also available for

your suppliers to understand the impact

of the changes and how these changes May

influence how they do business with you

in the

future in this knowledge drop series we

will explore these key changes and what

they mean for you and your organization

along with what steps organizations can

take to support their procurement or

commercial teams to implement and

deliver against the procurement

act specific sectors and

exemptions the procurement act applies

to Contracting authorities in England

Wales Northern Ireland and to

Contracting authorities with reserved

functions carrying out procurement in

Scotland public procurement is a

devolved issue and Welsh ministers and

Northern Ireland have chosen to join the

procurement

act the Scottish government will

continue to have its own legislation

regulating devolved Scottish

authorities however regulations will

allow Scottish Contracting authorities

to make use of certain contracts such as

Frameworks established under the ACT

some devolved Welsh and Northern irland

procurements are exempt from a small

number of requirements of the

procurement act in addition a number of

other specific exemptions apply to

certain utilities defense and security

and Health Care contracts which broadly

reflect and build upon those provided

for in the utilities contracts

regulations

2016 and defense and security public

contract regulations 2011 and the light

touch regime

fact sheets with further information on

these exemptions can be found on the

transforming public procurement page at

gov.uk we recommend that you download

the relevant fact sheets to review

alongside this knowledge drop

series firstly why is there a new

procurement

act at approximately 300 billion public

procurement accounts for around a third

of all public expenditure every year

year prior to leaving the EU UK public

procurement legislation was tied to EU

directives and consisted of four

separate sets of

regulations the public contracts

regulations

2015 the set of rules followed by most

Contracting

authorities the utilities contracts

regulations

2016 the defense and security public

contracts regulations

2011 and the concessions contracts

regulations 2016

following the UK's exit from the EU we

are no longer bound by these

directives this is provided an

opportunity to transform our public

procurement rules to increase

flexibility in the procurement process

and be more Innovative improve

transparency take a broader approach to

value for money for the UK

taxpayer improve access to opportunities

for businesses especially

smmes and Drive greater social

environmental and economic benefits on a

local and national

scale who does the procurement act apply

to the procurement act applies to

Contracting

authorities the ACT defines a

Contracting Authority as either a Public

Authority a public undertaking or

private

utility this typically includes bodies

like central government departments and

their Associated bodies local

authorities and NHS trusts many schools

and

universities some housing associations

and health

bodies the procurement act applies in

full for covered procurements which are

procurements over a certain

value these values or thresholds are

detailed in schedule one of the

procurement

act there are some exemptions that apply

to certain procurements and certain

organizations speak to your

organization's commercial procurement or

legal team if you're unsure whether the

procurement act applies to

you our International

obligations the procurement act

maintains compliance with the UK's

International obligations including

those that apply under the World Trade

organization's agreement on government

procurement

WTO

GPA which gives British businesses

guaranteed access to 1.3 trillion pounds

in public procurement opportunities

overseas the procurement act ensures

that UK businesses can continue to be

successful in competing for public

contract in other countries around the

world and will protect reciprocal

Arrangements guarantee Market access and

ensure that UK suppliers goods and

services are treated

equally

new procurement

objectives the procurement act

introduces new procurement objectives

which provide the foundation for all

public

procurement they should be at the

Forefront of your mind and give them

proper consideration during the course

of all procurement decision

making the new procurement objectives

that apply to cover procurements are

delivering value for money although this

is not a New Concept you must consider

further what value means to your

organization and the community it serves

and how you can get the best mix of

quality and price over the whole

lifetime of your

contracts maximizing public benefit you

were required to think about the extent

to which your contracts can deliver

greater benefit than they otherwise

would for example collaborating with

other Contracting authorities for a

common purpose to reduce resource

implications and costs or considering

social value benefits that could be

achieved by the

contract sharing

information transparency is still a key

consideration sharing information for

the purpose of allowing suppliers and

others to understand your policies and

decisions is the minimum obligation

outlined in the procurement act further

transparency obligations have been

embedded throughout with clear

publication requirement designed to

ensure an approach of transparency by

default acting and being seen to act

with

Integrity preventing fraud and

Corruption and being able to demonstrate

this through good management prevention

of misconduct and having full control

over your processes is

key treat suppliers the same you are

still required to treat suppliers the

same unless a difference between the

suppliers justifies different

treatment so for example where there is

a deadline for submission of tenders the

contractional authority should not be

prepared to accept late tenders from one

supplier but not from

others that would be a clear breach of

equal

treatment similar points can be made in

relation to any clear rules including

other deadlines word count limits

minimum quality or quantity standards

and so

on do not put a supplier at an unfair

advantage or

disadvantage if different treatment of

supplies is Justified you must take the

appropriate steps to ensure you do do

not put a supplier at an unfair

advantage or

disadvantage an example of different

treatment might be where you have

identified potential conflicts of

interest in relation to one supplier and

not another supplier it would be

justified to require the former supplier

to take certain steps to ensure that the

potential conflict does not lead to an

unfair Advantage which will not

necessarily be needed for the latter

supplier more information about

conflicts of interest can be found in

knowledge drop

to there is also a new Duty for

Contracting authorities to have regard

to small and mediumsized Enterprises

smmes participation and to reduce the

barriers that they may

face to put this in Practical terms

Contracting authorities will need to

specifically consider procurements From

an's

perspective for example whether the

tender response times are realistic when

some smaller suppliers do not have

dedicated bidding

team

National procurement policy

statements alongside these objectives

the procurement act also sets out a

power for ministers to publish a

national procurement policy statement n

PPS and for Welsh ministers to publish a

Wales procurement policy statement

wpps which will set out the national

strategic priorities for public

procurement the national procurement

policy statement will set out the

current strategic priorities for public

procurement and how Contracting

authorities in England and those

exercising nonevolved functions in Wales

Scotland and Northern Island can support

their

delivery Contracting authorities will

have to have regard to the relevant

priorities alongside other local

priorities when carrying out

procurements the Wales procurement

policy statement will set out the

Strategic direction for public

procurement in Wales it will set out

principles considerations and intended

outcomes that devolved welshire

authorities will have to have regard to

whilst undertaking public

procurements the npps and the wpps may

be amended or replaced at any point

following the required consultation and

approval by Parliament and the Senate

respectively Northern Ireland will

continue to implement public procurement

policy through procurement policy

notes

recap you should Now understand the

purpose of the procurement act including

the reasons for the new procurement act

that there are some exemptions that

apply to certain authorities and

contracts the procurement objectives and

the national procurement policy

statement and Wales procurement policy

statement that must be considered in

your

procurements in part two of this

knowledge drop series we will cover

pipeline publishing

requirements early supplier

engagement the full range of value for

money considerations and how you can

incorporate these into your

procurement the importance of

undertaking conflict of interest

assessments this material has been

produced for the purpose of Learning and

Development and does not constitute and

should not be relied upon as legal

advice this material is accurate as at

October

2023 fact sheets for the following

exemption can be found on

gov.uk concessions light touch defense

and security Northern Ireland whales

schools

utilities end of

animation