The new Procurement Act is set to be a pivotal piece of legislation, shaping and standardising the way procurement takes place in the future.
The act will come into effect from February 2025, but the time to prepare for it is now.
Key changes include the introduction of greater transparency, increased flexibility, a change in definitions and thresholds, and increased scope covering the entire lifespans of contracts.
The act also brings in a change around the award criteria for contracts, from a Most Economically Advantageous Tender (MEAT) to a Most Advantageous Tender (MAT).
We asked Reed Talent Solutions’ Head of Outsources Sales & Solutions – Public Services, Tracey Dawes, some of the key questions suppliers will be thinking about ahead of the introduction of the act.
Q. How are you as a supplier preparing for the changes that will be brought about by the Procurement Act?
A. It is really important that we understand from our clients how the act is going to impact them. We are learning and training and taking on all of the advice that’s being provided by the Cabinet Office.
Consultancy+ is a consultancy organisation which can help you deliver services procurement. By partnering with Consultancy+, you will have the opportunity to focus more on those complex solutions that will be needed after February 2025.
Q. From a supplier perspective, what should contracting authorities be doing in the lead up to the act going live?
A. Alongside training teams and accessing information available online, it’s really important to pipeline and knowledge share internally.
Consider securing a strategic partnership to share the increase in procurement activity. Frameworks in the market are available to secure partnerships that will allow for direct awards and call offs. As they are live frameworks, they are therefore not directly impacted by the Procurement Act.
Services procurement, available through Consultancy+, has been designed to conduct procurement activities on behalf of contracting authorities.
Q. What does the journey from MEAT to MAT mean for suppliers?
A. It may only look like one less letter, but for me personally, it means contracting authorities will be placing more value on community impact and social value.
While I completely understand the need for suppliers to deliver best value to the public sector, should this always mean a race to the bottom on price?
As a member of the Sustainability Committee for Reed, I’m proud of the investment that we make in delivering community benefits and with the change from MEAT to MAT, I’m encouraged by the journey contracting authorities will be going on.
Q. What is the most positive change you feel the act will bring about?
A. Pre-market engagement, which the act actively encourages. By meeting with suppliers before going to market, this allows us to support contracting authorities to understand what we are actually able to do, meaning less questions during the clarification period and allowing for collaborative innovation.
Specifications and commercial structures can be designed and issued in a way that allows suppliers to show and offer best value and true benefits.
Better specs mean more engaged suppliers, meaning better procurement outcomes.
Our dedicated page will help you prepare for the changes the Procurement Act is likely to bring – click here to visit it.
