The UK’s public procurement landscape is undergoing its most significant transformation in decades. With the Procurement Act 2023 taking effect on February 24 2025, organisations across the public and private sectors – particularly small and medium-sized enterprises (SMEs) and voluntary sector organisations – must ensure they are prepared to navigate this reformed regulatory environment.
This landmark legislation aims to enhance transparency, competition and innovation in public procurement, creating a more level playing field for businesses of all sizes. One of the most impactful changes is the greater accessibility it provides to SMEs and social enterprises, allowing them to play a larger role in public sector projects.
However, with great opportunity comes the need for preparation. Organisations must act now to understand, adapt and strategically position themselves within the new procurement framework.
A level playing field for SMEs
One of the most promising aspects of the Act is its increased accessibility for SMEs and social enterprises, empowering them to compete for public sector contracts on more equal terms. The role of procurement frameworks is set to expand, providing structured entry points for businesses seeking to engage with public sector buyers – offering immense potential for SMEs.
Frameworks act as pre-qualification tools, helping businesses bypass some of the complex hurdles associated with securing public sector contracts. For voluntary sector SMEs, which often drive social impact and deliver innovative solutions, leveraging these frameworks effectively could offer a substantial competitive advantage.
Key framework enhancements for SMEs
1. Open frameworks for inclusivity: The Act introduces the concept of “open” frameworks, designed to provide increased flexibility for businesses, ensuring SMEs and social enterprises can participate more readily. This represents a fundamental shift towards a more inclusive procurement process.
2. Dedicated social impact frameworks: Collaboration between public sector bodies and industry leaders could result in frameworks specifically designed for social impact initiatives. This would ensure that the unique expertise of voluntary sector SMEs is not overlooked in favour of larger, traditional suppliers.
3. Weighted evaluation criteria: Traditional procurement evaluations often prioritised cost and technical capability. Under the new system, social impact can be formally recognised within procurement scoring, allowing SMEs to demonstrate their value beyond just price.
Bridging the gap between SMEs and public sector buyers
While the new frameworks create exciting opportunities, public sector buyers must be equipped to fully utilise them and engage with SMEs effectively. Many procurement teams face tight time constraints and lack visibility into the SME ecosystem. This is where innovative solutions such as SME matching platforms and enhanced capacity-building initiatives come into play.
• SME matching platforms: Digital platforms that connect public sector buyers with pre-qualified voluntary sector SMEs will streamline procurement decisions and ensure better alignment with social impact goals.
• Capacity building resources: Training procurement teams to evaluate social impact within frameworks will be critical. By integrating resources that guide public buyers through these new considerations, the effectiveness of procurement decisions will be enhanced, ensuring a more holistic and value-driven approach to supplier selection.
Ensuring compliance and innovation in procurement
To stay in line with these changes, organisations must develop strategies that align with the new procurement legislation, ensuring compliance while maintaining flexibility and cost-effectiveness in procurement decisions. One key shift is the transition to the Most Advantageous Tender (MAT) model, which replaces the traditional Most Economically Advantageous Tender (MEAT) approach. This ensures that procurement decisions factor in broader benefits such as sustainability, social impact and long-term value, rather than just cost.
Additionally, organisations should take advantage of guideline papers and advisory resources to stay informed. As frameworks and procurement procedures evolve, businesses should explore the Competitive Flexible Procedure, a new approach designed to support more complex and innovative procurement projects.
Looking ahead: embracing the New Procurement Act
If they haven’t already, businesses must take proactive steps to integrate these changes into their procurement strategies. SMEs, particularly those in the voluntary sector, should focus on understanding how open frameworks, weighted evaluation criteria and SME matching platforms can be leveraged to their advantage.
By fostering collaboration between framework providers, public sector buyers and voluntary sector SMEs, the future of public procurement will be more transparent, inclusive and impactful than ever before. Organisations that prepare now will be best positioned to maximise the opportunities presented by this transformative legislation.
The time to act is now – embrace the change, innovate and unlock the potential of the new procurement landscape.
Find out more about the Procurement Act on the government website
Shaun Toner is commercial business partner at Matrix.
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