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 the UK’s public procurement process transitioning from the Most Economically Advantageous Tender (M.E.A.T.) model to adoption of the Most Advantageous Tender (M.A.T.) approach.

the New Procurement Framework

The Procurement Act (2023) introduces a restructured procurement framework designed to enhance efficiency, ensure fair competition, and reinforce Social Value principles across all public contracts. This transformation has been driven by the need to reduce bureaucratic obstacles, encourage supplier diversity, and create a procurement system that is better suited to modern economic challenges.

One of the most significant shifts under the new framework is the move from the Most Economically Advantageous Tender (M.E.A.T.) approach to the Most Advantageous Tender (M.A.T.) principle. This shift prioritises not only cost-effectiveness but also broader strategic goals, including sustainability, job creation, and social impact. The transition acknowledges that the lowest-cost option is not always the best long-term investment for public sector procurement.

In this section, we will explore the key changes introduced by the Procurement Act (2023), their implications for suppliers and procurement professionals, and how businesses can successfully adapt to these reforms.

The Move from M.E.A.T. to M.A.T. — a Paradigm Shift

For decades, the UK’s public procurement process revolved around the Most Economically Advantageous Tender (M.E.A.T.) model, which placed significant emphasis on cost considerations when awarding contracts. While price competitiveness remains an essential factor in procurement decisions, the limitations of this approach have become increasingly apparent. A contract awarded purely on price may fail to account for long-term sustainability, local economic benefits, and the wider societal impact of procurement choices.

With the adoption of the Most Advantageous Tender (M.A.T.) approach, procurement decisions must now incorporate qualitative factors, such as:

• Sustainabilityand Carbon Reduction – Ensuring suppliers contribute to the UK’s net-zero
• Social Value Considerations – Demonstrating how contracts contribute to community well-being, workforce development, and economic resilience.
• Innovationand Long-Term Viability – Prioritising suppliers that offer innovative, future-proof solutions.
• Supplier Diversity and Inclusion – Promoting engagement with SMEs, social enterprises, and minority-owned businesses.

This shift requires suppliers to rethink how they present their bids. Beyond demonstrating cost-efficiency, they must provide compelling evidence of their long-term value, ethical business practices, and commitment to social and environmental objectives.

New Procedures for Framework Agreements

Another key reform under the Procurement Act (2023) is the restructuring of framework agreements, which govern long-term contractual arrangements between public sector buyers and suppliers. The previous system often led to inefficiencies, as closed frameworks prevented newer, innovative suppliers from entering pre-established agreements. The new framework structure introduces more flexibility by:

• Allowing for dynamic purchasing agreements that enable new entrants to join throughout the contract period.
• Reducing administrative burdens for SMEs by simplifying application processes.
• Introducing greater accountability for framework managers to ensure fair competition and compliance with Social Value objectives.

By making framework agreements more accessible and competitive, the Procurement Act ensures that the best suppliers—regardless of their size or previous experience—can compete for public sector contracts.

Enhanced Transparency and Open Data Requirements

Transparency remains a cornerstone of the Procurement Act (2023). New reporting and data-sharing obligations ensure that procurement decisions are fully documented, accessible to stakeholders, and open to scrutiny. These requirements include:

• A publicly accessible contract register, detailing awarded contracts, their value, and supplier details.
• Standardised data reporting, making it easier to compare bids across different procurement categories.
• Improved audit trails, reducing the risk of fraud, corruption, and mismanagement in public procurement.

These measures are expected to foster greater public trust in government spending and encourage a more competitive supplier market.

Implications for Procurement Professionals and Suppliers

The changes introduced under the Procurement Act (2023) require procurement professionals to adapt their approaches and internal processes. Key implications include:

• Increased TrainingRequirements – Procurement teams must familiarise themselves with new compliance obligations and tender evaluation criteria.
• Stronger Collaborationwith Suppliers – Buyers must work closely with suppliers to define Social Value objectives and ensure they are met.
• Enhanced Contract ManagementStrategies – Procurement teams must implement rigorous monitoring and enforcement measures to hold suppliers accountable for their commitments.

For suppliers, these changes necessitate a shift in how they prepare bids and demonstrate their capabilities. Businesses must be able to provide clear, measurable evidence of their contributions to sustainability, workforce development, and broader community benefits.

Procurement Act 2023 Readiness Checklist: Preparing for the New Framework

To successfully navigate the new procurement framework, businesses should:

	Conduct an internal review of bidding strategies and align them with M.A.T. principles.
	Develop clear Social Value reports that outline their contributions to local communities.
	Invest in sustainable business practices to enhance compliance with new environmental regulations.
	Engage in continuous training to keep procurement teams informed of new compliance obligations.
	Monitor framework agreement opportunities and ensure timely registration to participate in public tenders.

Summary

The Procurement Act (2023) represents a fundamental transformation of the UK’s public procurement landscape. By shifting from a cost-dominated approach to one that prioritises long-term value and Social Value contributions, the Act introduces both challenges and opportunities for businesses and procurement professionals alike. Understanding the intricacies of this new framework will be key to remaining competitive in public sector tenders. The next section will examine Social Value and its increasingly prominent role in procurement decision-making.