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National procurement specialist Pagabo has launched a campaign to support the UK’s public and private sectors with adopting and benefiting from the latest procurement reform, which went live on 24 February through the Procurement Act 2023.
‘Act on Procurement’ simplifies the legalisation within the Procurement Act through a range of resources, including an extensive downloadable guide, explainer video, FAQs and webinars – all created by the experts at Pagabo, which manages a portfolio of procurement frameworks on behalf of public sector contracting authorities.
Along with explaining the changed obligations for contracting authorities when procuring via the new regime and considerations for suppliers and how it impacts them, the campaign explores why 2025 will be a landmark year in the history of procurement legislation and how Pagabo can help.
Shamayne Harris, head of procurement at Pagabo, said: “Through our close contact with organisations varying in size across the public and private sectors, we were well aware of the different levels of preparedness ahead of the launch of the Act. With this in mind, we established a collection of resources to increase access to knowledge and support around the Procurement Act – before the Act went live and afterwards – to help others compliantly navigate procurement reform.
“There are lots of new obligations, concepts, definitions and processes for different professionals to familiarise themselves with, which we hope to have made more accessible and actionable.”
Pagabo is the UK’s leading procurement specialist, managing a suite of frameworks on behalf of public sector contracting authorities. The company manages compliant framework agreements and provides bespoke consultancy – delivered and backed up by a team of MCIPS and NEC qualified procurement professionals.
With an approach rooted in creating the maximum social value possible, works procured through frameworks managed by Pagabo have to date enabled more than £6bn in social value for communities. Pagabo’s approach and appreciation of social value will become particularly valuable now the Procurement Act 2023 has gone live, as the legislation contains significant provisions to encourage sustainability when awarding contracts.
Shamayne added: “The Procurement Act presents a huge opportunity to increase simplicity, transparency and opportunity within procurement in the long-term, which will help to ensure the public purse is best utilised – making this an important moment in time. With central government continuing to unveil substantial plans for development of infrastructure, communities and public services, the time is now for everyone to pull together and help realise the potential for public procurement to provide value for money, economic growth and social value.
“We’re encouraging everyone, no matter how much procurement concerns you day-to-day, to consider learning more and challenging your existing approach to projects that involve public and private sector collaboration to reduce procurement risk and champion compliance.”
Pagabo’s popular monthly series Pagabo Live will be focussing on the Procurement Act in March, with the episode titled ‘Procurement Reform is Live – What Now?’ Those interested in receiving insights after the Procurement Act is implemented can register now ahead of the session on 19 March: https://pagabo.co.uk/episodes/webinar-procurement-reform-is-live-what-now/
Contracting authorities and suppliers must now embrace the new procurement regime and its objectives – establishing lasting behavioural change. Five key areas of change for contracting authorities have been identified.
1. Notices
The new notices drive transparency, increasing inclusion and enabling greater scrutiny of procurement decisions and contract performance to maintain high standards. Contracting authorities need to invest time into their procurement resources or engage with agents like Pagabo to establish their frameworks or provide access to frameworks for future call off contracts. It is intended that the increased administrative burden will be offset by the simpler system aiming to reduce duplication.
2. Procedures
The new mechanisms aim to create maximum flexibility for procurement solutions and reduce barriers to entry. Suppliers are encouraged to engage with contracting authorities to contribute to pre-procurement planning stages and support the design of procurement solutions.
Meanwhile, contracting authorities should be utilising preliminary market engagement to determine the most appropriate route to market and ensure their internal policies and procedures align with the new mechanisms.
3. Exclusion and debarment
The discretionary and mandatory exclusion grounds remain very similar, targeting non-compliance and poor performance, but the scope widens under the Act. The Acts launch also established the Procurement Review unit which is a new unit based within the Cabinet Office. It has responsibility for oversight of public procurement. It consists of three services: Public Procurement Review Service (PPRS), Procurement Compliance Service (PCS) and Debarment Review Service (DRS)
Contracting authorities are now required to review and verify applications against the live debarment register and any notices detailing unsatisfactory performance for each procurement opportunity.
There is some nervousness around this, but there are several robust steps that must be completed prior to a supplier being placed on the debarment register.
Suppliers are encouraged to review their supply chains to ensure no organisation poses unacceptable risk. Policies and procedures should also be subject to a levelling up exercise to ensure the correct governance is in place.
4. Performance
Procurement performance is a core focus of the procurement reform and therefore it formalises and strengthens some of the existing requirements.
There will be increasing analysis of the entire procurement lifecycle, from pre procurement through to contract performance via the publishing of new notices, and suppliers will be assessed on whether things are performing as intended within bids.
5. Challenges
The provisions remain broadly the same, but there are some changes to the challenge process, including changing the standstill period to eight working days. Contracting authorities must provide all bidding organisations that have been assessed with feedback in the new assessment summary format, aiding industry betterment by enabling suppliers to improve future bids.
More Information:
To access Pagabo’s range of ‘Act on Procurement’ resources, head to www.pagabo.co.uk/procurement-reform