A BID WRITERS’ BLOG
In my last blog I promised to cover the key aspects of the recent Procurement Act.
I must admit to being biased regarding this piece of legislation because – as a member of the Cabinet Office Small Business Advisory Panel – I was involved in the (lengthy) discussions that led to the Procurement Bill becoming the Procurement Act when it passed into legislation in 2023 with the intention of the Act being fully adopted in October 2024. However, the current Government has delayed that implementation until February 2025 – with a further delay being possible.
A number of organisations are spreading a message of fear regarding this legislation and claiming that Businesses need to do a lot of preparation for when the Act is finally implemented. Those organisations are hosting events costing – in some cases hundreds of pounds – to explain what small businesses need to do to be ready for this new legislation.
But the reality is that most small businesses don’t need to do anything! The onus is on the “buyers” not the “sellers” to change their method of working.
Some of the key intentions of the Act are:
• To open up public procurement to new entrants such as small businesses and social enterprises so that they can compete for and win more public contracts
• To relax restrictions on considering factors such as supplier location and social value, allowing councils more flexibility to support local businesses and achieve wider community benefits
• To embed transparency throughout the commercial lifecycle so that the spending of taxpayers’ money can be properly scrutinised.
Three key benefits of the Act for small businesses are:
Clause 12: (also applies to “below threshold” procurements)
(4) In carrying out a covered procurement, a contracting authority must—
(a) have regard to the fact that small and medium-sized enterprises may face particular barriers to participation, and
(b) consider whether such barriers can be removed or reduced.
Clause 22
(3) A condition set under subsection (1)(a) may not:
(a)require the submission of audited annual accounts, except from suppliers who are, or were, required to have the accounts audited in accordance with Part 16 of the Companies Act 2006 or an overseas equivalent;
(b) require insurance relating to the performance of the contract to be in place before the award of the contract.
Clause 68 – 30 days payment terms in public contracts
That really does summarise the Act for SME’s but if any YBC members have questions about the Act please get in touch with the YBC team and we will consider organising a short, affordable, session to explain in a bit more detail how the Act will benefit SME’s and what actions public sector bodies have to take when preparing tenders.
Tim Colman – Timecheck Consulting / Procurement Lead for Your Business Community