Transforming Public Procurement - The Procurement Act - Issue 2

What are some of the key changes?

The current procurement regulations set out how public sector contracting authorities should buy their goods and services. There are a number of regulated procedures which contracting authorities should follow.

The Procurement Act will bring in a number of changes to these procedures, both by introducing new procedures and concepts, and amending or removing some of the old ways of working.

 
 

What’s new?

The Act has introduced three competitive tendering procedures: the Open Procedure,  the Competitive Flexible Procedure and Dynamic Markets. 

Open Procedure

The Open Procedure is defined as a single stage tendering procedure without a restriction on who can submit tenders and remains as a standalone procedure, operated in a similar way to the current Open Procedure.

Competitive Flexible Procedure

This is a new tendering procedure. It is classed as any competitive procedure considered appropriate to award the contract and provides flexibility for the buyer to design their own tendering procedure. However, buyers must explain in the tender notice the processes they intend to use to run the procedure.

This could be as simple as running a process similar to the current restricted process, or the process can include negotiation or dialogue. There is lots of potential, and it gives buyers the flexibility and freedom to use their commercial skills to get the best from the market.

A Competitive Flexible Procedure may also provide for the exclusion of suppliers by conditions of participation, or intermediate assessment of tenders.

Contracting authorities must ensure that their procedure is a proportionate means of awarding the public contract, having regard to the nature, complexity and cost and ensuring suppliers are treated fairly and transparently.

Dynamic Markets

Dynamic Markets are similar to, and will replace, the current Dynamic Purchasing System. A contracting authority can declare its intention to create a Dynamic Market by publishing a Dynamic Market Notice, specifying the terms of entry.  The Dynamic Markets have no maximum length but duration must be specified in the notice.

Once a Dynamic market goes live:

· Suppliers can apply to join the Dynamic Market at any point during its lifetime. The contracting authority must assess all applications and notify them of their status within a reasonable timeframe.

· There is no limit to the maximum number of suppliers who can join a Dynamic Market.

· Any tender intended to be awarded via the Market must be published publicly and make reference to the fact that only members of the Market will be considered. All current, new or pending applications to join the Market must then be considered while this tender is open.

Contracts are then awarded by referencing a supplier's membership of the relevant Dynamic Market.

Awarding contracts

The Act states that a public contract may be awarded to “the supplier that submits the most advantageous tender in a competitive tendering procedure”. The most advantageous tender (MAT) is a tender that best satisfies requirements and award criteria. The Act amends the existing standard of ‘most economically advantageous tender’ (MEAT). By adopting MAT, the Cabinet Office states this should provide greater reassurance and allows a broader view of what can be included in the evaluation of tenders.

What is the easiest way to compliant procurement?

By using the frameworks managed by Dukefield Procurement, you can ensure any procurement you wish to undertake is compliant, as we will navigate the new processes and procedures for you!   

 You can find out more about our frameworks: on our website

How Dukefield Procurement can help:

Dukefield Procurement’s qualified procurement professionals are on hand to provide free advice,  and to support you with any questions you may have as we progress through the new legislation.

We will be publishing a series of easy to understand general guidance notes, backed up with webinars, presentations and learning resources. We can also offer tailor made support services for your institution to assist with both the new Procurement Act and wider procurement concerns.

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Sarah Dungar