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Procurement Act 2023: Changes, Exclusion, and Transparency

The Procurement Act 2023 introduces significant changes in the procurement process, emphasizing exclusion for poor performance, increased transparency requirements, and expanded grounds for exclusion. It includes new procedures, such as the Supplier registration system and updated award criteria. Transparency is enhanced through various notices throughout the procurement lifecycle. The Act also focuses on contract performance monitoring, with mandatory KPI reporting for contracts over £5m. Debarment lists and grounds for exclusion have been revised to align with updated regulations.

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Procurement Act 2023: Changes, Exclusion, and Transparency

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  1. The Procurement Act 2023 Partners in Procurement - Supplying the Public Sector 2 November 2023

  2. osborneclarke.com Topics 01 Progress and timings of the Act 02 Familiar ground – some concepts which remain 03 Changes to be aware of 04 Changes to prepare for: exclusion and debarment; transparency 1

  3. osborneclarke.com Procurement Act 2023 – the journey so far It started with Brexit…….. Further consultation on secondary legislation (July 2023) Procurement Bill introduced (May 2022) Green Paper (Dec 2020) Act in force (~ October 2024) Government Response (Dec 2021) Consultation on secondary legislation (June 2023) Royal Assent (October 2023) 2

  4. osborneclarke.com Familiar concepts which remain Who is caught Thresholds Light touch regime Frameworks Challenges and remedies 3

  5. osborneclarke.com Changes to be aware of Full procurement lifecycle is regulated New competitive flexible procedure Change to award criteria (MEAT to MAT) Supplier registration system Procurement objectives New grounds for direct award New safe harbours for modifications 4

  6. osborneclarke.com Changes in transparency requirements Planning Tender Award Contract Implementation • Pipeline Notice • Planned Procurement Notice • Preliminary Market Engagement Notice • Tender Notice • Transparency Notice • Dynamic Market Notice • Contract Award Notice • Contract Details Notice • Below- threshold Tender Notice • Payments Compliance Notice • Contract Change Notice • Contract Performance Notice • Contract Termination Notice 5

  7. osborneclarke.com Contract performance notices •Contracts over £5m must have at least 3 published KPIs •Assess KPI performance annually •Also use to report on details of supplier's failure to perform Link to discretionary exclusion for poor performance 6

  8. osborneclarke.com Expansion of grounds for exclusion • Expansion – eg Modern slavery, theft and bribery • New grounds – eg Corporate manslaughter, competition law offences, misconduct in relation to tax Mandatory Grounds • Expansion – violation of environmental, social or labour laws now more specific • New grounds – national security Discretionary Grounds 7

  9. osborneclarke.com Exclusion for past poor performance In a prior public contract • Failure to perform to authority's satisfaction • Given an opportunity to improve performance • Failed to do so Breach of contract (whether or not as a result of a court ruling) Notice has been published by an authority concerning breach or poor performance Sufficiently serious if led to: • Termination (full/partial) • Award of damages • Settlement agreement 8

  10. osborneclarke.com Debarment list Grounds mirror discretionary and mandatory exclusion Notification of exclusions to central authority to investigate / consider debarment Appeals to inclusion on list Discretionary exclusions, authorities retain discretion to exclude Mandatory exclusions, binding on all Suppliers remain on the list until authority satisfied ground no longer applies Minister keeps list under review Early removal for self-cleaning 9

  11. osborneclarke.com Thank you Catherine Wolfenden Partner United Kingdom Laura Thornton Associate Director United Kingdom T +44 117 917 3600 catherine.wolfenden@osborneclarke.co m T +44 207 105 7845 laura.thornton@osborneclarke.com 10

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