The Procurement Act: 1 Year On. Emerging Themes and Key Trends for Suppliers.
The Procurement Act came into force in February 2025, and a year on, its impact is already clear. This was the most substantial reform to UK public procurement law in decades, replacing the retained EU regime with a UK-designed system. Its main objectives were to:
• Simplify and modernise procurement processes
• Increase transparency and improve data quality across public contracts
• Support SMEs, VCSEs, and broader participation
• Embed strategic policy priorities such as social value, innovation and economic resilience into procurement
• Introduce the Competitive Flexible Procedure as a standard selection route.
In the sections that follow, we share the key themes and trends we have observed over the past year and what they mean for suppliers navigating this new procurement system.
At Contracts Advance, we help organisations navigate change and guide them in finding, qualifying, and winning bids under new frameworks like the Procurement Act.
Data, Transparency, and Centralisation
One of the Act’s clearest early impacts has been improved procurement data quality and accessibility. For the first time, procurement notices across planning, tendering and contract implementation are published in a standardised, centralised way.
Rise of Competitive Flexible Procedures
The Act’s Competitive Flexible Procedure (CFP) has emerged as a notable trend. Its use is growing, particularly in construction, business services and IT, and it now represents a significant portion of published tender notices by value.
Implications for suppliers:
• CFP is often outcomes or innovation-focused, requiring different approaches such as pitched solutions or iterative evaluations.
• Smaller, agile suppliers can gain an edge by demonstrating value through innovation rather than competing solely on price.
Increased Focus on SME Engagement and Social Value
A key priority under the new regime is reducing barriers for SMEs and supporting local economic growth. Government departments are required to set three-year SME spend targets, and contracting authorities must take steps to make participation easier for smaller suppliers.
Practical takeaways for suppliers:
• Contracts and submission documents are becoming more SME-friendly
• Contract notices increasingly ask bidders to demonstrate social, environmental and economic value
• Payment terms – 30 days from authorities to main suppliers – are now clearer and more consistent.
Stronger Accountability and KPIs
The Act requires authorities to publish Key Performance Indicators (KPIs) for larger
contracts (e.g. over £5m) and to assess suppliers annually, with performance notices made
publicly available.
Impact on suppliers:
• Contract performance reporting is now crucial – avoid overpromising at the tender stage
• Poor performance ratings, even if contested, can be public and affect future opportunities
• Data-driven contract management becomes part of the commercial offering, not just a compliance requirement.
Debarment and Exclusion Risks
The new regime introduces a centralised Debarment List. Suppliers can be excluded from all UK public procurement for up to five years if debarred following an investigation.
Key points for suppliers:
• Mandatory and discretionary exclusion grounds still apply, making compliance and risk management essential.
• Supply-chain due diligence and ethical risk frameworks are now central to risk mitigation.
What Suppliers Should Be Aware Of
Here’s what suppliers, especially SMEs should prioritise in their response to the new regime:
Registration and Digital Access
- You must register on the UK’s Central Digital Platform (CDP) to participate in tenders; even past registration (e.g. Find a Tender) does not carry over.
Tailored Bid Strategies
- Competitive Flexible Procedures often require innovative, outcome-oriented bids (not just lowest price).
- Demonstrate delivery capability with measurable KPIs and social value metrics.
SME and VCSE Positioning
- Emphasise social value, environmental benefits and economic contributions in tenders – this is now part of core evaluation.
- Quality and clarity in bids matter more than ever for smaller organisations.
Performance and Risk Readiness
- Monitor contract KPIs and be ready for publicly visible performance reporting.
- Maintain robust compliance frameworks to avoid exclusion or debarment risks.
Emerging Themes and Future Direction
Even in its first year, the Procurement Act signals a clear shift from transactional to strategic public procurement. Procurement is now explicitly a driver of economic growth, job creation, social and environmental value. The regime is also accelerating digital transformation and embedding transparency, enabling more data-driven scrutiny and performance management.
Importantly, the framework is more SME-inclusive, lowering barriers to entry while raising expectations on capability. This creates significant opportunities for agile suppliers that can compete on quality, compliance and demonstrable value.
For guidance on navigating these changes, along with finding, qualifying and winning opportunities, contact Contracts Advance.