The commencement of the Procurement Act has been delayed until 24 February 2025
The rumours were true. The Cabinet Office has today issued a much-anticipated Parliamentary statement that the date the Procurement Act 2023 will come into force has been delayed from 28 October 2024 to 24 February 2025.
https://questions-statements.parliament.uk/written-statements/detail/2024-09-12/hcws90
There has been considerable speculation that a delay may be announced over the last week, but contracting authorities and bidders now have certainty that, until at least 24 February 2025, procurements will continue to be conducted in accordance with the current rules. Procurements that have been commenced prior to 24 February 2025 or those conducted under the Provider Selection Regime will not be affected by the Act.
The statement released also states:
“Under the Act, the previous administration published a National Procurement Policy Statement to which contracting authorities will have to have regard. But this Statement does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value. I have therefore taken the decision to begin the vital work of producing a new National Procurement Policy Statement that clearly sets out this Government’s priorities for public procurement in support of our missions.”
We will have to see how the NPPS develops, as well as keep an eye out for further updates on what might change.
Whilst this is likely to be frustrating for those who were ready for 28 October, at least everyone will have more time to get prepared for the Act coming into force.
The implementation of the Procurement Act 2023 represents the most significant change to public sector procurement since 2015, and contracting authorities will need to ensure that they are ready for the new regime. Hempsons’ specialist procurement team has been delivering training nationally on the effect of the Procurement Act 2023 and best practice in view of the developing case law in this field.
If you have any questions regarding this update then please get in touch with Andrew or one of our specialist procurement team.