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The Procurement Act; a guide for education

Blog
The YPO Team
24 Feb 2025

The Procurement Act 2023, in effect as of 24 February 2025, is a new set of regulations for public sector organisations buying goods and services. It aims to make procurement quicker, simpler and more transparent. This will allow small businesses and social enterprises to be more competitive in winning public contracts.

The general scope of the act applies to all contracting authorities in England, Wales and Northern Ireland, while Scotland has opted to retain their own procurement regulations. The new regime will have general principles across the public sector but also considerations for the education sector.

Legislative Considerations

The four sets of previous public contract regulations will be replaced by the single act which must go through parliament and the house of lords to be changed. It will be supported by the Procurement Regulations which are more straight forward to amend.

In addition, schools must consider the Public Services Social Value Act 2012 which requires them to consider the wider social, economic and environmental benefits rather than just the cheapest provider.

Schools must also have regard to the National Procurement Policy Statement (NPPS) which sets out the government’s strategic priorities for public procurement and how contracting authorities can support the delivery of it. YPO recommends that you document your rational when awarding contracts so you have a clear audit as to how you have regarded the NPPS in an individual procurement.

Key Changes for Schools

Under the new act there will be some key changes affecting schools. In line with the emphasis on transparency, there will be an increase in the volume of notices that will need to be published at the various stages. However, schools will be exempted from being required to publish payment notices after contract award.

The new act also includes changes to terminology. For instance, direct award is now referred to as award without competition. Additionally, schools will be required to use the new “Central Digital Platform” which will streamline the process. This will replace the existing “Find a Tender Service”. The platform will be available soon.

Procurement Procedures

For reduced complexity, the procurement procedures available will be reduced to the following options:

-Direct awards (which will have new limitations)

-Competitive flexible procedure is a multi-staged process that allows for customizations and the ability to modify requirements as the process progresses.

-Open procedure are a single-stage tendering process with no shortlisting phase.

Frameworks and Dynamic Markets

-Open frameworks: They must be opened at least twice during the 8-year duration meaning schools will be offered fresh options at multiple points.

-Closed frameworks: Suppliers may only join at the start.

-Dynamic markets will replace dynamic purchasing systems with Dynamic markets which are more flexible as suppliers can join at any time and they have no maximum term and can be used for below threshold contracts. However, they require a tender notice for each procurement

To assist schools and the education sector in navigations these new regulations and procedures, experts recommend the TPP training available on the government commercial college website as well as the Procurement Pathway tool which offers useful templates and guidance documents. We also have plenty of resources on our procurement page including a webinar that provides guidance on the changes in greater detail as well as well as other resources. Find out more about our resources and solutions here.

Author

The YPO Team

YPO supplies products and services to a wide range of customers including schools, local authorities, charities, emergency services, public sector and other businesses such as nurseries and care homes. YPO are 100% publicly owned, by 13 local authorities, which means the profits made are returned to public sector customers, delivering even better value for money.