Procurement Act 2023: Moving Beyond Compliance

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We have now been operating under the Procurement Act 2023 for well over a year.

Looking back to February 2025, many procurement teams were simply focused on getting through their first procurements under the new rules. There was a lot to learn, new terminology to understand and new processes to put in place. For many, success was measured by getting a procurement over the line without discovering a regulation they had somehow missed.

Fast forward to today and most organisations have found their feet. Templates have been updated, governance processes have settled down and the Central Digital Platform has become part of everyday procurement life.

However, as the sector moves beyond implementation, I believe a new challenge is emerging.

In some cases, we have become so focused on compliance that we risk overlooking the opportunities the legislation was designed to create.

That view is reflected in Procurement Hub's Procurement Act 2023: The Pulse Report, which provides an early snapshot of how procurement professionals are adapting to the new regime. While almost 74% of respondents had already procured under the new Act, nearly 66% described their experience as only "average".

That is perhaps not surprising. The last year has been spent learning new rules and managing change. But if the Procurement Act is going to deliver on its promise, the next phase needs to be about more than compliance. It needs to be about confidence.

Competitive Flexible Procedure: Are We Overthinking It?

If there is one feature of the Procurement Act that generated the most discussion during the early months, it is probably the Competitive Flexible Procedure.

One thing I noticed quite quickly was that many organisations responded to flexibility by creating more complexity.

In some cases, procurement exercises ended up with multiple stages of negotiation, extensive governance checkpoints and lengthy timelines that placed additional pressure on both procurement teams and suppliers.

The irony is that the legislation was intended to give organisations more freedom to design processes that suit the market they are buying from.

Over the past year, the most successful examples I have seen have generally been the simplest.

That does not mean cutting corners. It means designing a process that is proportionate to the requirement and focused on achieving the right outcome.

I've yet to meet a procurement team that regretted engaging with the market early. I have, however, spoken to plenty who wished they had done it sooner.

A conversation with suppliers before launching a procurement can often identify issues, improve specifications and reduce problems later in the process. It can also help organisations understand whether a lengthy multi stage procurement is genuinely necessary or whether a more streamlined approach would achieve the same result.

The flexibility is there to help procurement teams make better decisions. It should not become an excuse to create additional layers of process.

The Transparency Opportunity We Are Only Starting to Appreciate

When the new transparency requirements were introduced, most conversations focused on the additional workload.

Pipeline Notices, Planned Procurement Notices, Tender Notices, Transparency Notices and Contract Award Notices all represented another task on already busy procurement teams' to do lists.

That reaction was understandable.

However, I think many organisations are now beginning to see the bigger picture.

For years, procurement professionals have talked about the importance of market intelligence and benchmarking. The Procurement Act has created a level of transparency that gives us access to information that simply wasn't available before.

If you are preparing to procure a major project, you can now see how other authorities are approaching similar requirements. You can identify suppliers active in the market, understand commercial trends and gain insight into how neighbouring organisations are tackling common challenges.

Rather than viewing transparency as something we have to do, there is a growing opportunity to see it as something that can help us make better decisions.

Used well, transparency data has the potential to become one of the most valuable tools available to procurement professionals.

Frameworks and Dynamic Markets: It Doesn't Have to Be One or the Other

One of the more interesting debates I continue to hear is whether organisations should be using frameworks or Dynamic Markets.

The reality is that this is often presented as a choice when it should really be viewed as a question of suitability.

Dynamic Markets have clear advantages. Their ability to remain open to new suppliers makes them particularly attractive in sectors where markets evolve quickly and new providers emerge regularly. They can also play an important role in supporting SME participation and supplier diversity.

However, they are not a universal solution.

Dynamic Markets require ongoing management, supplier engagement and resource. For the right category, that investment can be worthwhile. For the wrong one, it can create additional work without necessarily improving outcomes.

At the same time, frameworks remain an important part of the procurement landscape.

For many high volume or repeat requirements, a well managed framework still offers one of the fastest and most efficient routes to market. They provide certainty, reduce procurement timescales and help organisations access capable suppliers quickly.

In my experience, the strongest procurement strategies are rarely built around a single approach. They use the right commercial tool for the right requirement.

The key question should never be whether frameworks or Dynamic Markets are better. It should be which option best supports the market you are buying from and the outcomes you are trying to achieve.

The Real Challenge Is Confidence

While the legislation has changed, many of the behaviours across the sector remain familiar.

Procurement professionals are naturally cautious. Nobody wants to be the organisation making headlines for the wrong reasons, and concerns about scrutiny and challenge have not disappeared simply because the rules have changed.

That caution was evident in the findings of The Pulse Report.

Only 11.5% of respondents said they felt confident with the new rules, while more than 62% reported that their level of optimism had remained unchanged since implementation.

For me, that highlights one of the biggest challenges facing the sector.

“The barriers to innovation are no longer primarily legislative. Increasingly, they are cultural.”

The Procurement Act was designed to create greater flexibility and support more commercial decision making. The move from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender) was a clear signal that procurement should consider more than cost alone.

Authorities now have greater scope to evaluate factors such as social value, environmental impact, community benefit and long term resilience.

That does not mean abandoning commercial discipline. It means recognising that value can take many forms and that procurement decisions should reflect the outcomes organisations are trying to achieve.

The legislation gives procurement professionals permission to think more broadly. The challenge now is having the confidence to use that flexibility effectively.

Where Do We Go From Here?

More than a year on from implementation, I believe the conversation needs to evolve.

The focus can no longer be solely on understanding the legislation. Most organisations have already done the hard work of adapting to the new regime.

The next phase is about making the legislation work for us.

That means using flexibility where it adds value, making better use of transparency data, engaging markets earlier and focusing procurement activity on delivering meaningful outcomes for communities and public services.

The tools are now in place. The experience is growing across the sector. The opportunity is there.

The challenge is making sure we use it.

Quick Check: Is Your Procurement Strategy on Track?

Are you keeping procurement processes proportionate?

Avoid creating unnecessary complexity where a simpler approach would deliver better engagement and faster outcomes.

Are you making use of transparency data?

Look at what others in the market are doing before launching a procurement. There is valuable intelligence available that did not exist a few years ago.

Are you choosing the right route to market?

Consider where frameworks can provide efficiency and where Dynamic Markets may offer greater flexibility.

Are you focusing on outcomes as well as compliance?

The move to MAT creates opportunities to consider social value, environmental impact and long term resilience alongside price.

How Procurement Hub Can Help

Many organisations are now moving beyond implementation and focusing on how to get the most from the opportunities created by the Procurement Act.

Whether you are reviewing your procurement strategy, considering the use of Dynamic Markets, looking to strengthen supplier engagement or seeking support through compliant procurement frameworks, Procurement Hub works with contracting authorities across the UK to help deliver effective procurement outcomes.

To explore how procurement professionals are adapting to the new regime, read our latest Procurement Act 2023: The Pulse Report. Alternatively, get in touch with the team to discuss how we can support your organisation's procurement objectives and help you maximise the opportunities created by procurement reform.

Procurement Act 2023: The Pulse Report


Insights from procurement professionals across the UK

Explore how organisations are adapting to the Procurement Act 2023 and what it means for compliance, flexibility and procurement strategy.

Procurement Insights Report

About the Author

Alan Heron FCIPS
Managing Director, Procurement Hub

With more than 30 years' experience in procurement, commercial strategy and public sector delivery, Alan works with organisations across the UK to help achieve compliant, effective and value driven procurement outcomes. He is a Fellow of the Chartered Institute of Procurement & Supply (CIPS) and regularly shares insights on procurement reform, commercial best practice and public sector procurement strategy.