The Procurement Act 2023: A Complete Guide for UK Suppliers
The Procurement Act 2023 came into force on 24 February 2025, marking the biggest reform to UK public procurement in over 30 years. This comprehensive guide explains what changed, why it matters, and how suppliers can adapt to the new landscape.
What Changed on 24 February 2025 and Why It Matters
The Procurement Act 2023 replaced the Public Contracts Regulations 2015 (PCR 2015), fundamentally changing how UK government procurement operates. This isn't just a regulatory tweak—it's a complete reimagining of public sector buying designed for the post-Brexit era.
Key drivers for the change:
- Brexit flexibility: Freedom from EU procurement directives
- SME access: Breaking down barriers for small businesses
- Innovation focus: Supporting cutting-edge solutions
- Transparency: Better oversight and accountability
- Simplification: Reducing bureaucratic burden
Key Changes for Suppliers
MEAT → MAT (Most Advantageous Tender)
What changed: Award criteria evolved from "Most Economically Advantageous Tender" (MEAT) to "Most Advantageous Tender" (MAT).
Why it matters: Non-financial criteria can now win contracts outright. Quality, innovation, environmental impact, and social value can outweigh price considerations.
Supplier impact:
- Quality-led businesses have stronger competitive position
- Innovation and environmental credentials carry more weight
- Social value commitments can be contract-winning factors
- Price-only strategies are less effective
New Notice Types and the Central Digital Platform
What changed: The procurement process now uses five main notice types on the new Central Digital Platform:
- Pipeline Notice - Advance market warning (replaces PIN)
- Preliminary Market Engagement Notice - Formal supplier consultation
- Tender Notice - Contract opportunity (replaces OJEU/FTS notice)
- Transparency Notice - Contract award announcement
- Contract Details Notice - Contract performance updates
- Contract Performance Notice - Performance monitoring
- Contract Change Notice - Variations and modifications
- Dynamic Market Notice - Framework reopening alerts
Supplier impact:
- Earlier visibility of upcoming opportunities
- Formal channels for pre-tender engagement
- Better market intelligence through transparency notices
- Clearer framework reopening schedules
Preliminary Market Engagement (PME)
What changed: Suppliers can now engage with contracting authorities before tender publication without disqualification risk.
How it works:
- Buyers publish PME notice outlining engagement plans
- Suppliers participate in market days, workshops, or consultations
- All engagement is transparent and documented
- No unfair advantage for participants
Supplier benefits:
- Shape requirement specifications early
- Understand buyer priorities before bidding
- Demonstrate capabilities without procurement risk
- Build relationships with contracting authorities
Mandatory Debriefs for All Unsuccessful Bidders
What changed: All unsuccessful bidders now have a legal right to detailed feedback.
Debrief requirements:
- Must be provided within reasonable timeframe
- Must include specific reasons for rejection
- Must explain how successful bid was superior
- Must identify areas for improvement
Supplier benefits:
- Understand why bids fail for future improvement
- Challenge decisions with concrete evidence
- Access feedback even on framework applications
- Build systematic win rate improvement
Expanded Exclusion Grounds and the Debarment Register
What changed: New exclusion grounds added beyond traditional financial and criminal criteria.
New exclusion categories:
- Poor past performance on government contracts
- Breach of employment rights or environmental standards
- Non-payment of taxes and social security contributions
- Conflict of interest scenarios
Debarment Register: New central database of excluded suppliers with:
- Transparent listing of excluded entities
- Reasons for exclusion
- Duration of exclusion periods
- Appeals process
Supplier impact:
- Higher standards for contract performance
- Greater emphasis on employment and environmental compliance
- Reputational risk of public listing
- Need for robust performance management
Procurement Review Unit (PRU)
What changed: New independent body for procurement oversight and supplier complaints.
PRU powers:
- Investigate procurement processes
- Issue compliance recommendations
- Publish findings and guidance
- Handle supplier escalations
How suppliers use the PRU:
- Escalate concerns about non-compliant procurement
- Request investigations into procurement decisions
- Access independent review of complaints
- Benefit from published best practice guidance
Available at: Procurement Review Unit guidance
What Stayed the Same
Framework agreements: Continue largely unchanged with some procedural updates
TUPE obligations: Transfer of Undertakings regulations still apply
Social value principles: Public Services (Social Value) Act 2012 remains in force
Threshold values: Contract value thresholds updated but concept unchanged
State aid rules: Subsidy control regime separate from procurement rules
PCR 2015 vs PA23: Transitional Arrangements
Critical timing rule: Contracts are governed by the regulations in force when the procurement commenced, not when the contract is awarded.
What this means:
- Procurements started before 24 February 2025 follow PCR 2015 rules
- Procurements started from 24 February 2025 follow PA23 rules
- Mixed situations possible during transition period
Framework implications:
- Existing frameworks operate under original regulations
- Framework call-offs follow the framework's governing rules
- New frameworks from February 2025 follow PA23
For suppliers:
- Maintain capability to respond under both regimes
- Identify which rules apply to each opportunity
- Adapt responses accordingly
Current Threshold Values (Updated February 2025)
| Contract Type | Central Government | Sub-Central Bodies | Utilities | |---------------|-------------------|-------------------|-----------| | Goods & Services | £139,688 | £214,904 | £429,808 | | Works Contracts | £5,372,609 | £5,372,609 | £5,372,609 | | Social & Other Services | £663,540 | £663,540 | £663,540 |
Light Touch Regime: £663,540 for health, social, educational, and cultural services
Timeline and Implementation
24 February 2025: Procurement Act 2023 in full force March-December 2025: Transitional period with mixed PCR/PA23 procurements January 2026 onwards: Majority of procurements under PA23 Q2 2026: RFP Quest platform launches with full PA23 compliance
How RFP Quest Supports Procurement Act 2023 Compliance
Our platform is designed specifically for the PA23 landscape:
AI-Powered MAT Optimisation
- Content generation focused on quality and innovation criteria
- Social value response templates aligned with evaluation weightings
- Environmental impact assessment tools
PME Engagement Support
- Market engagement opportunity alerts
- PME response templates and best practices
- Relationship building tools for pre-tender engagement
Notice Type Intelligence
- Automated monitoring across all new notice types
- Pipeline opportunity early warning system
- Framework reopening alerts and analysis
Performance Management
- Contract performance tracking to avoid exclusion grounds
- Compliance monitoring across employment and environmental standards
- Debarment register monitoring and alerts
Enhanced Feedback Integration
- Systematic capture and analysis of mandatory debriefs
- Win/loss pattern analysis for continuous improvement
- Buyer preference mapping from feedback data
What Suppliers Should Do Now
Immediate Actions (0-3 months)
- Audit Current Compliance: Review against expanded exclusion grounds
- Update Templates: Adapt response libraries for MAT evaluation criteria
- Team Training: Educate bid teams on PA23 requirements
- Process Review: Align internal procedures with new notice types
Medium-term Planning (3-12 months)
- PME Strategy: Develop approach for early market engagement
- Performance Systems: Implement contract performance tracking
- Innovation Portfolio: Strengthen capabilities in quality and innovation
- Social Value Enhancement: Develop measurable community impact programs
Long-term Development (12+ months)
- Market Positioning: Align business development with PA23 opportunities
- Capability Building: Invest in areas emphasised by MAT evaluation
- Relationship Strategy: Build networks for PME participation
- Continuous Improvement: Use mandatory feedback for systematic enhancement
Industry-Specific Implications
Technology and Digital Services
Opportunities:
- Innovation criteria favour cutting-edge solutions
- PME allows early demonstration of capabilities
- G-Cloud framework enhanced with PA23 flexibility
Considerations:
- Security clearance requirements unchanged
- Environmental impact of digital solutions emphasised
- Data protection compliance more prominent in evaluation
Construction and Infrastructure
Opportunities:
- Social value weighting increased in most procurements
- Local supply chain preferences supported by legislation
- Innovation in sustainable construction recognised
Considerations:
- Performance monitoring more rigorous under PA23
- Employment standards scrutiny increased
- Environmental compliance mandatory for exclusion avoidance
Professional Services
Opportunities:
- Quality and expertise can outweigh price considerations
- Thought leadership valued through PME participation
- Innovation in service delivery recognised
Considerations:
- Past performance tracking across multiple frameworks
- Continuous improvement expectations higher
- Client relationship building opportunities through PME
Frequently Asked Questions
Does PA23 apply to all public procurement?
PA23 applies to contracting authorities covered by the previous regulations: central government, local authorities, NHS bodies, and utilities. Some specialist sectors have separate regimes.
Are the threshold values the same?
Threshold values were updated in February 2025 but the concept remains. Above-threshold procurements follow full PA23 procedures; below-threshold procurements have simplified requirements.
How does Brexit affect PA23?
PA23 is the UK's sovereign procurement framework, free from EU constraints. It provides flexibility to prioritise UK policy objectives like social value, SME access, and innovation.
When should I start using PA23 procedures?
PA23 applies to procurements that commence from 24 February 2025. Existing procurements continue under PCR 2015 until completion.
What happens to existing frameworks?
Existing frameworks operate under their original regulations until expiry. New frameworks from February 2025 follow PA23 rules.
How can I prepare for PA23 compliance?
Focus on quality and innovation capabilities, develop measurable social value commitments, ensure robust performance management, and consider early market engagement strategies.
Get Ready for Procurement Act 2023 with RFP Quest
The Procurement Act 2023 creates new opportunities for suppliers who understand and adapt to the changes. RFP Quest's platform is purpose-built for the PA23 landscape, helping UK businesses navigate the new procurement environment and win more government contracts.
Register for early access to be ready when our platform launches in Q2 2026 with full Procurement Act 2023 compliance built in.
Need more guidance? Explore our guides on social value procurement and how to win government tenders in the PA23 era.