What is the Procurement Act 2023?

The Procurement Act 2023 is one of the biggest upheavals of procurement laws in more than three decades. Until 2023, existing procurement was derived from EU rules around public procurement.

The new Procurement Act consolidates various existing public procurement rules into a single regime based on the sector priorities of the UK and specific social care objectives as highlighted by Government.

This Act aims for smarter, fairer and more conscious spending, to modernise procurement and shift the focus from cheapest to fairest.

The Basics of The Procurement Act 2023?

The Procurement Act 2023 introduces a simple, transparent framework. It is designed to give authorities more flexibility to shape their procurement around policy priorities while still striving towards improvements in accessibility for small and medium enterprises (SMEs) and voluntary, community, faith and social enterprises (VCFSEs).

The Act came into place after the UK left the EU and replaced the previous EU-era procurement rules. It applies to public bodies across the UK, such as councils, the NHS, and central government. The Act introduces simpler procedures and clearer routes for awarding contracts than previously, and therefore provides buyers with more freedom to choose suppliers for value rather than affordability.

The Big Shift

The changes implemented via the Procurement Act 2023 are primarily around the awarding of contracts. While the basis by which contracts are awarded is unchanged for the most part, the removal of the requirement that award criteria must be considered from the ‘point of view of the contracting authority’ is a key change. It highlights that contracting authorities can take more factors than price and technical quality into account when value for money needs determining.

The basis of the award is referred to under The Procurement Act 2023 and is referred to as the ‘Most Advantageous Tender’ (MAT). In previous legislation, it was referred to as ‘The Economically Advantageous Tender (MEAT). It is worth noting that this is not a change in policy but is instead a clarification for contracting authorities that tenders need not be awarded on the basis of low cost, or that cost should take any precedence over other factors.

The Act also highlights how contracting authorities can refine the criteria for the award in a competitive and flexible manner in some circumstances. This is something that was not addressed directly in previous legislation.

Furthermore, previous legislation did not always require contracting authorities to ask suppliers to explain their price when it appeared to be abnormally low, per the Act. Under the Procurement Act 2023, authorities are now required to investigate abnormally low prices and provide suppliers with opportunities to demonstrate that the contract can be performed for the proposed price before disregarding tender. The Act, does not specifically include a list of explanations that may be provided to validate unusually low prices, however, seeking explanations regarding the supplier’s ability to perform the contract is encouraged.  </p>

Social value

Another significant change to procurement is in the social value aspect. While the National Procurement Policy Statement

is separate from the Act, contracting authorities are required by law to regard it under Section 13 of the Act. This highlights its practical importance in procurement decision-making.

This adds strength to social value through:

• Mission-driven procurement: This formalises that procurement decisions contribute to long-term national priorities.
• Place-based approaches: Encouraging contracting authorities to move away from generic Social Value requirements and design contracts that reflect challenges in their communities.
• Contract management and delivery: Making it clear that authorities should benchmark the capability of their procurement. Ensuring they have the capacity to manage contracts effectively and for value for money in the long-term.

Implications for Social Care Procurement

The Procurement Act 2023 impacts procurement by implementing additional process regulations that raise expectations around transparency, governance, and evidence. Commissioners now have the expectation that providers will show how their services will act in practice, including how leadership will oversee delivery, risk management, safeguarding concern escalation protocols, and quality improvement tracking.

Practice has shifted away from theoretical commitment and has moved towards practical governance evidencing. Commissioners are increasingly focused on delivery credibility.
The Procurement Act 2023 has introduced a more transparent and outcome-focused landscape to commissioning practice. Providers that adapt quickly benefit greatly when they strengthen their governance, improve their collection of evidence and ensure that leadership systems in place are credible and visible. Procedural familiarity is crucial.

How CareCubed Fits the New Procurement Landscape

The Procurement Act 2023 aligns with the social care sector push to work towards transparency, fair pricing and long-term value for money. Cheaper contracts can often lead to instability, and procurement is complex with varying needs, high risk and a focus on quality.

CareCubed can help sector organisations to stay in alignment with the Procurement Act 2023. CareCubed is a digital, SaaS data-driven tool that modernises the understanding of care costs. It is backed up with regularly updated methodology and market insights that enable smart commissioning and encourage productive negotiations. CareCubed helps to bridge the gap between the commissioner and provider understanding of costing in the market.

CareCubed supports cost transparency and aids commissioners in avoiding over- and underpayment of care packages. Meanwhile, it also provides a clear evidence-based benchmark that assists commissioners in achieving fair, sustainable pricing that reflects value for money goals.

CareCubed also supports the social value aspect of the modern procurement landscape. By supporting better outcomes for those who receive care, encouraging fair market shaping and long-term sustainability and corresponds with the Act’s focus on socially responsible, ethical procurement.

The Procurement Act 2023 underpins the need to choose what is most advantageous for society. CareCubed embodies this in its economical and innovative design that is rooted in social value.

To find out more about how CareCubed can support your organisation in bolstering your alignment with the Procurement Act 2023, contact us for a demo.