In the ever-evolving landscape of public procurement, the Procurement Act 2023 stands out as a key moment of change, promising greater transparency, accountability, and opportunities. When this new legislation takes effect on October 28th, 2024, it will bring with it a host of implications for various sectors, including charities.
This article delves into the details of the Act, its specific impact on charities, and how organisations within this realm can navigate the upcoming changes in a way that maximises the potential returns.
Understanding the Procurement Act 2023
At its core, the Procurement Act 2023 aims to overhaul the public procurement system by introducing measures that enhance transparency and fairness. The Act emphasises the need for public contracts to be awarded in a way that provides public benefit (a goal that will resonate deeply with the values of charities and social enterprises).
Key components of the legislation include the introduction of transparency notices and open frameworks, which are designed to make procurement processes more accessible and competitive.
Implications for charities
Charities, particularly those providing goods, services, or works to public sector organisations/bodies, will find themselves directly affected by this new legislation. Here’s a look at some of the main implications:
Increased opportunities
Charities, which currently capture a small percentage of public contracts, may find themselves in a more favourable position under the new rules. The Act’s focus on public good aligns seamlessly with the missions of many charitable organisations, potentially allowing them to be more competitive in securing government contracts.
By highlighting their social impact, charities can better position themselves as ideal partners in public procurement. By leveraging their intrinsic commitment to social causes, they can demonstrate their unique value propositions in proposals, potentially giving them an edge in crowded bidding environments.
Simplified bidding process
The Act simplifies bidding procedures, reducing the administrative hurdles that often deter smaller organisations. This change is designed to create a level playing field, encouraging more charities to participate in government procurement.
Feedback on unsuccessful bids
Charities will receive assessment summaries of unsuccessful bids, providing insights into how their proposals compared to winning bids. This feedback is invaluable for improving future applications and increasing chances of success.
Regulatory compliance
With new opportunities come new responsibilities. Charities will need to navigate the enhanced regulatory framework, which may involve updating their governance and procurement strategies. This means staying abreast of new compliance requirements and ensuring their operational processes align with the Act’s stipulations (such as the publication of transparency notices and adherence to performance monitoring).
Strategies for charities to prepare
Charities looking to thrive under the Procurement Act 2023 should consider the following steps:
1. Enhance compliance frameworks
Establish a dedicated team or appoint a compliance officer to ensure adherence to the new regulations. This team can monitor changes in procurement policies and implement necessary adjustments in real time.
2. Strengthen performance measurement
With a new exclusion/debarment framework in place, charities must deliver consistently on contracts to avoid the risk of being omitted from future opportunities. Prioritising performance and meeting KPIs will enhance your reputation as a reliable supplier.
Develop robust methods for measuring and reporting on social impact too. By providing clear evidence of your contributions to public benefit, you can make a compelling case for why you deserve to continually win contracts.
3. Build strategic partnerships
Collaborate with other organisations and stakeholders that share similar goals. By forming alliances, charities can pool resources, share knowledge, and enhance their competitive advantage in the procurement process.
4. Invest in training and development
Equip staff with the skills and knowledge needed to navigate this new procurement landscape. Training sessions and workshops can help ensure they are ready to comply with the Act’s requirements and harness the associated gains. It’s also important to stay informed on a continuous basis. Utilise government resources to keep up with the latest rules and processes.
Embracing change
The Procurement Act 2023 presents both challenges and opportunities for charities. While the path forward requires adaptation and strategic planning, the potential rewards are substantial. By aligning their missions with the Act’s objectives, embracing compliance, and capitalising on their unique strengths, charities can transform these changes into avenues for growth and increased impact. In this new era of procurement, they have the chance to not only secure more contracts but also reinforce their role as pivotal contributors to the public good.
At OneAdvanced, we’ve partnered with the Crown Commercial Service (CCS) to make sure our Spend Management solutions are up to date with the latest regulations, thus enabling you to meet your procurement goals efficiently. While the new Act aims to simplify procurement processes, we understand that many organisations may not be equipped for a smooth transition. Our software creates improved visibility around procurement-related activities, so that you can clearly demonstrate you are adhering to the new requirements.
For more information about the changes that will be brought about by the Procurement Act 2023, be sure to check out the government’s official website.