A professional’s guide to the Procurement Act 2023. We explore the new legislation and offer a FREE COPY of our 50-page Procurement Act Handbook (published 2025). Expert guidance and checklists!

In this extract of the ESG Pro Procurement Act Handbook, we consider the key changes to the Procurement Act 2023 and especially how to understanding the competitive procurement process

Introduction to the Competitive Procurement Process

The Procurement Act (2023) fundamentally reshapes the competitive procurement process by refining the way public contracts are awarded, ensuring that decisions are no longer solely price-driven but instead consider a wider array of factors. With the introduction of the Most Advantageous Tender (M.A.T.) framework, procurement authorities must evaluate supplier bids based on long-term impact, sustainability, innovation, and Social Value contributions alongside cost efficiency.

For suppliers, this means adapting their tendering approach to align with these new expectations, which necessitates a clear understanding of how procurement decisions are made, what evaluation criteria are prioritised, and how to structure bids to maximise success rates.

This section will break down the competitive procurement process under the new framework, highlighting best practices for suppliers, key procedural steps, and common pitfalls to avoid.

Key Stages in the Procurement Process

While the competitive procurement process can vary slightly depending on the nature of the contract and the authority overseeing it, most procurements follow a structured series of stages:

1. Market Engagement and Pre-Tender Preparation

Market engagement has become an increasingly significant part of the procurement process under the new framework. Public authorities are encouraged to conduct pre-tender market engagement to ensure they are designing procurement opportunities that align with industry capabilities and innovation. This phase often includes:

• Market Sounding Exercises – Engaging with suppliers to assess their readiness and capacity to deliver specific requirements.
• Pre-Tender Consultations – Providing suppliers with preliminary insights into upcoming tenders and allowing them to shape procurement strategies before formal competition begins.
• Publication of Prior Information Notices(PINs) – Offering advance warning of upcoming contracts, enabling suppliers to prepare.

For businesses, participating in this early-stage engagement is crucial as it allows them to influence procurement specifications, understand buyer expectations, and tailor their approach accordingly.

2. Publication of Tender Documents

Once procurement authorities have finalised their specifications, they publish formal Invitation to Tender (ITT) documents or Request for Proposals (RFPs). These documents outline:

• Scope of Work – A detailed description of contract requirements.
• Evaluation Criteria – The weighting assigned to cost, quality, Social Value, sustainability, and innovation.
• Bid Submission Deadlines – Clear deadlines that must be adhered to in order to be considered.
• Compliance and Qualification Requirements – Minimum criteria suppliers must meet, such as financial stability, certifications, and previous experience.

The shift towards M.A.T. means that suppliers must carefully craft their submissions to demonstrate added value beyond cost. Failure to effectively align with the published criteria can significantly reduce a supplier’s chance of success.

3. Bid Submission and Evaluation

Following the tender publication, suppliers must submit their bids within the specified deadline. Under the Procurement Act (2023), bid evaluation involves a more comprehensive assessment, taking into account:

• Social Value Contributions – Clear demonstration of how the contract will provide measurable benefits to society.
• Sustainability Commitments – Alignment with environmental and carbon reduction.
• Delivery and Quality Assurance– Robust plans for contract execution, ensuring efficient and high-quality service delivery.
• Risk Management and Business Continuity – Strategies to mitigate risks and ensure uninterrupted contract fulfilment.
• Pricing and Financial Competitiveness– While cost is still a major factor, it is now weighed alongside qualitative benefits.

Bid evaluation panels use a combination of scoring methodologies and weighted assessment matrices to determine which submission offers the greatest overall advantage.

4. Clarifications and Negotiations

In complex procurement processes, authorities may conduct clarification meetings with shortlisted suppliers to seek further details on their bids. This stage allows:

• Suppliers to clarify technical or procedural aspects of their bids.
• Buyers to negotiate specific contract terms where permissible.
• Both parties to refine the scope of work to ensure optimal outcomes.

Strong supplier engagement during this phase can often be a decisive factor in contract award decisions.

5. Contract Award and Implementation

Once evaluation and clarifications are complete, the winning supplier is awarded the contract, and the formal implementation phase begins. Under the Procurement Act (2023), authorities must publicly disclose contract awards and provide detailed reasoning for their decision to enhance transparency.

Key post-award requirements include:

• Performance Monitoring – Contracting authorities will actively track supplier performance against Key Performance Indicators (KPIs).
• Ongoing Social Value Reporting– Suppliers must provide periodic updates demonstrating the fulfilment of Social Value commitments made in their bid.
• Supplier Relationship Management – Ensuring continuous collaboration between buyers and suppliers to optimise contract outcomes.

Failure to meet contractual obligations may result in penalties, termination clauses, or disqualification from future tender opportunities.

Common Challenges in the Competitive Procurement Process

While the new framework aims to streamline procurement and increase fairness, suppliers still face several challenges, including:

• Understanding Complex Tender Documentation – The increasing focus on sustainability, innovation, and Social Value makes tender requirements more intricate.
• Demonstrating Social Value Effectively – Providing tangible evidence of Social Value commitments can be difficult without structured measurement frameworks.
• Navigating Evaluation Weighting Variability – Different authorities may apply Social Value weightings inconsistently, requiring suppliers to tailor bids to specific tenders.
• Managing Costs vs. Value Delivery – Balancing financial competitiveness with long-term Social Value contributions requires strategic planning.

Overcoming these challenges necessitates a proactive, well-researched approach to tendering that aligns with the evolving public sector procurement landscape.

Procurement Act 2023 Readiness Checklist: Competitive Procurement Success

To maximise success in securing public contracts, suppliers should:

	Regularly monitor procurement notices and participate in pre-tender market engagement activities.
	Develop robust Social Value strategies aligned with National TOMs Framework and PPN 06/20.
	Invest in training bid-writing teams to effectively align submissions with M.A.T. principles.
	Implement sustainability policies that comply with Carbon Reduction Plans (PPN 03/23).
	Engage in post-contract performance monitoring to ensure continued compliance and value delivery.

Summary

The competitive procurement process under the Procurement Act (2023) is significantly different from previous approaches, requiring suppliers to integrate Social Value, sustainability, and innovation alongside financial competitiveness. With a renewed focus on long-term impact and transparency, businesses that successfully align their procurement strategies with the new framework will enhance their chances of securing public contracts.

The next section will explore the role of Technology and Procurement, examining how digital tools and automation are transforming the procurement landscape and driving efficiency in public sector tendering.