The long-anticipated UK Procurement Act 2023 came into effect on Monday, 24th February 2025, potentially marking a significant shift in how public sector contracts are awarded and managed. The new Act represents a transformative moment in public sector contracting. While it creates exciting opportunities for Small and Medium-Sized Enterprises (SMEs), it also demands a proactive and strategic approach to bidding.

Designed to improve transparency, flexibility, and innovation, the Act brings substantial opportunities for businesses of all sizes, including SMEs. However, while the new framework aims to streamline procurement processes, SMEs must navigate potential challenges.

At Claritas Solutions, my team and I are committed to supporting businesses in navigating these changes, helping them unlock new opportunities and succeed in the evolving procurement landscape.

After discussing the Act with my friends, industry peers, and colleagues at the Association of Proposal Management Professionals (APMP) UK Chapter, here are some of my thoughts and takeaways that may help you and your business:

Streamlining Our Approach with the Contracts Advance Ltd Software Application

One of the key ways my team has prepared for and adapted to the new procurement landscape is by leveraging the Contracts Advance Software Application with its new UX/UI design to streamline our sourcing of opportunities. This has not only improved efficiency but also resulted in significant time savings—approximately 20 man-days per month. With this additional capacity, the team has shifted focus towards enhancing the quality of our responses to support increasing win rates. By automating and refining our approach, we are better positioned to secure public sector contracts under the new Act.

The Positives: A Step Forward for Public Procurement

The Procurement Act 2023 introduces several measures aimed at promoting competition and enhancing accessibility, particularly for SMEs looking to secure public sector contracts:

• Greater Transparency and Simplification – The Act simplifies procedures and improves visibility into procurement opportunities, ensuring a more level playing field. The increased use of digital platforms provides SMEs with better access to contract notices and opportunities.
• Emphasis on Value for Money and Social Impact – The new framework moves beyond just price considerations, placing greater emphasis on social value, innovation, and long-term benefits. This shift allows SMEs that deliver niche, high-quality, or socially responsible services to be more competitive.
• Faster and More Flexible Procurement Processes – By streamlining regulations and reducing red tape, the Act makes it easier and quicker for businesses to engage with public sector buyers, reducing the administrative burden that has traditionally been a barrier for smaller suppliers.

The Challenges: What SMEs Need to Watch Out For

Despite its positive intent, the new Procurement Act also presents potential challenges that SMEs must prepare for:

• Increased Competition – With a more open and transparent approach, larger organisations may also find it easier to enter the SME space, increasing competition for smaller contracts.
• Capacity and Compliance Burdens – While the Act seeks to reduce bureaucracy, SMEs will still need to ensure compliance with new regulations, including enhanced reporting requirements and supply chain transparency. Keeping up with these changes may require additional resources.
• Shifting Buyer Behaviours – Public sector buyers now have more flexibility in selecting suppliers based on value and impact rather than price alone. SMEs must refine their proposals to demonstrate clear social, environmental, and economic benefits, rather than simply competing on cost.

Key Takeaways for Bid and Proposal Teams

For those involved in public sector bidding, understanding and adapting to these changes is critical. Here are my three key takeaways to ensure success under the new Procurement Act:

1. Stay Informed and Proactive – Keep up with evolving procurement requirements and ensure your bid strategy aligns with the new framework. Utilise digital tools to track opportunities and regulatory updates. We recently partnered with Contracts Advance to receive comprehensive coverage of new and active opportunities, competitor and buyer activity, and up-to-date insights and knowledge of how to bid within the public sector.
2. Demonstrate Value Beyond Cost – Focus on highlighting your organisation’s ability to deliver social value, innovation, and long-term benefits. Align your proposals with public sector priorities to enhance competitiveness.
3. Invest in Compliance and Capability – Ensure your business is prepared to meet the Act’s reporting and transparency requirements. This might involve improving internal processes, upskilling bid teams, or leveraging external expertise to stay compliant and competitive.