Procurement Act 2023: early insights and sector realities for higher education

Following her recent participation in the Westminster Business Forum alongside policymakers and procurement professionals from across England, Wales and Northern Ireland, Gemma Payne, Head of SUPC, shares her reflections on the early implementation of the Procurement Act 2023. With the legislation now live, Gemma offers a sector-focused view on the immediate challenges, cautious optimism, and practical realities facing procurement teams – particularly within higher education – as they navigate a rapidly evolving landscape. This thought piece captures her key takeaways of the new Act and considers what needs to happen next to turn policy into meaningful progress. 

From legislation to application: the first hurdles 

We’re standing at a pivotal moment in public procurement, with the introduction of the new Procurement Act offering both daunting challenges and promising opportunities. While it’s still early days, our focus right now must be on continuing to demonstrate best practice. The real test will come as we begin to see the practical application of the Act. Until then, lessons learned and refinements will be vital.

A Google search of “Procurement Act 2023” yields thousands of results, including handbooks, infographics, podcasts, blogs and more events than the procurement sector has ever seen. SUPC has been supporting sector to navigate their way through requirements of the new Act to ensure compliance.

Introducing UKUPC 

UKUPC, the UK Universities Purchasing Consortia, is a strategic collaboration of eight regional and category-specific university purchasing consortia from across the UK. Together, we support the higher education sector by delivering compliant, value-for-money procurement frameworks, driving innovation, and enabling knowledge sharing across our networks. 

SUPC, or the Southern Universities Procurement Consortium, is proud to be one of the founding members of UKUPC. We work with our members, primarily universities and research institutions in the South of England,to ensure they have access to procurement frameworks, guidance, and tools that not only meet regulatory requirements, but also support strategic, sustainable, and impactful procurement outcomes. 

Through our collective strength and shared expertise, we are helping the sector navigate the complex procurement landscape with confidence and clarity. 

Supporting our sector: tools at your disposal  

UKUPC has taken proactive steps to support the sector. We’ve developed a suite of templates for use across all consortia and by our members, making the transition to the new Act smoother. The increased emphasis on contract management in the new Act prompted SUPC to review and relaunch its Supplier Relationship Management and contract management processes. These enhancements are designed to better support both our members and suppliers moving forward. Did you make it to the last event?  

We’re also developing member-level KPIs across all our frameworks under the new Act. These will give our members and suppliers valuable insights to help drive performance and accountability. 

An area generating a lot of conversation is the Central Digital Platform (CDP). While it promised streamlined processes, many have found the current experience not significantly different from previous systems. Bulk uploading pipeline notices was expected—but in reality, each notice must be inputted individually. There is however some confusion among suppliers who are misinterpreting pipeline notices as live tenders. And on top of that, API key registration issues have caused disruptions across e-tendering platforms, largely due to misunderstandings about the one-time registration process. 

Despite the changes, activity across the sector has been slow since the 24 February go-live. Ironically, we saw more procurement activity before the new rules came into force. That cautious approach is understandable, but it underlines the need for clear guidance and practical support as we navigate these early months. 

We’re also keeping a close eye on the evolving compliance landscape. With the introduction of the Procurement Review Unit and the Procurement Compliance Service, the government is actively investigating companies implicated in supplier misconduct. Those found negligent could be added to a centrally managed debarment list – a powerful tool to ensure accountability and prevent such suppliers from securing future public contracts. 

An SME-friendly environment 

Another key pillar of the new regime is the focus on supporting small businesses. The Procurement Act encourages a more SME-friendly environment through smarter lotting structures, reduced duplication in the standard selection process, and mandated 30-day payment terms. UKUPC and SUPC are currently reviewing our procurement strategies and templates to ensure we’re doing all we can to help SMEs access and succeed in public sector tenders. 

It’s worth highlighting that around 70% of suppliers on our higher education frameworks are already SMEs. That’s a strong foundation to build on. But we know more work is needed, especially around flexible procurement procedures. Competitive Flexible Procedure, for example, could be resource-intensive for small businesses. So, we must support SME engagement right from the Early Market Engagement stage, through better lotting, simpler processes, and tailored support. 

Our frameworks continue to provide a reliable and compliant route for procurement, particularly for those hesitant to tender directly under the new Act. We’re actively negotiating at the framework level to ensure value for money for our members. This gives our members reassurance: they can trust that their procurement activity is compliant, without the need to worry about the new procedures or updating their internal documentation. We’re doing that work for them. 

Fair payment practices remain a priority as well, with the Public Procurement Review Service playing a key role. Ensuring prompt payment throughout the supply chain is not just a regulatory obligation—it’s a business imperative. 

We’re also aware of the potential vulnerabilities to anti-competitive behaviour. While we await more direction on the role of the Competition and Markets Authority and the Public Sector Fraud Authority in this space, it’s an area we’re monitoring closely. 

There’s always a silver lining  

One silver lining to all these changes is that procurement is finally gaining greater visibility, both within organisations and externally. The Procurement Act is helping to elevate our profession, creating more opportunities to secure internal buy-in, drive innovation, and leverage negotiation. However, with new procedures come new demands, and that includes investment in upskilling teams, especially around negotiation. 

The Transforming Public Procurement programme has provided a solid foundation, but the real test will come when we see procurement fully active under the new regulations. Continued investment in training and capability-building will be essential if we’re to truly unlock the benefits of the new regime. 

So in conclusion, yes, it’s early days. But the work we do now matters. From templates and frameworks to supplier engagement and SME support, we are laying the groundwork for a more transparent, efficient, and inclusive procurement landscape. 

Do you need support with the new Procurement Act? Get in touch with our SUPC procurement experts today.