Summary of the UK’s New Procurement Act and how it can benefit SME's and Public Sector

The UK Government has overhauled its public procurement rules through legislation known as the “Procurement Act,” which came into force on 24th February 2025. This new framework replaces the EU-derived regulations (e.g., the Public Contracts Regulations 2015) with a single, UK-tailored regime. Its aim is to simplify procedures, enhance transparency, and support innovation and value for money in public contracting. Below are the key points – including how SME's such as UBDS Digital can benefit.

1. A Single, Consolidated Framework

• Unified rules: Multiple EU-based regulations are replaced by a single statute, reducing fragmentation and creating a simpler environment for public contracting.
• Consistency across sectors: Public bodies (e.g., local authorities, central government agencies) will apply one coherent set of procedures, streamlining processes for both buyers and bidders.

2. Simplified Procedures

• Reduced number of tendering routes: Instead of a long list of rigid procedures, the Act introduces more flexible and simplified options.
• Competitive Flexible Procedure: Contracting authorities can tailor procurement to suit the specific goods, services, or works they need. This can include negotiation and dialogue to foster more innovative or complex solutions.

3. Greater Transparency and Integrity

• Stronger disclosure requirements: Authorities must publish more data (from opportunity notices to award details and contract performance), boosting accountability and deterring unfair practices.
• Streamlined oversight and remedies: Suppliers can more easily challenge procurement decisions if they believe rules have been breached, with clearer dispute-resolution processes.

4. Improved Access for SME's and Innovation

• Encouraging small business participation: One of the Act’s explicit goals is to reduce barriers for SME's, making it easier for them to compete fairly for government contracts. This levels the playing field and allows smaller providers—like UBDS Digital—to bring innovative solutions to the public sector.
• Driving innovation: Negotiation, dialogue, and flexible procedures promote cutting-edge solutions and avoid “one-size-fits-all” outcomes.

5. Broader Evaluation Criteria

• Most Advantageous Tender: The focus shifts from “lowest price” to considering factors such as quality, social value, and sustainability. This allows innovative and higher-value proposals to stand out.
• Incorporation of social and environmental benefits: Authorities have greater leeway to factor in elements like carbon footprint or community impact when awarding contracts.

6. Clearer Exclusion Grounds

• Refined rules on excluding suppliers: Past misconduct or poor performance can be grounds for exclusion, ensuring fair competition among reputable vendors.
• Potential for a central debarment list: A supplier found to have violated key criteria could be identified across the public sector, enhancing consistency and reducing risk.

Opportunities for SME's

The Procurement Act heralds a significant shift in how public contracts are competed for and awarded. By reducing complexity, fostering transparency, and accommodating innovative solutions, it creates new opportunities for SMEs like UBDS Digital. The Act’s focus on flexibility, social value, and overall advantage (rather than just lowest price) aligns perfectly with our agile delivery model, cost-competitive offerings, and portfolio. This should make it easier and faster for UBDS Digital to collaborate with public-sector clients, deliver enhanced security operations, and drive better outcomes for government and the communities it serves.

Why UBDS Digital?

At UBDS Digital, we believe the Procurement Act’s emphasis on flexibility and innovation is well matched to our approach. Our managed IT services—including Security Operations Centre (SOC) solutions—are tailored to meet public-sector requirements while often delivering up to 30% in cost savings compared to traditional providers. To find out more about how these regulatory changes can help your organisation achieve faster, more secure, and more innovative outcomes, contact our public sector team today.