The Procurement Act 2023 has ushered in a new era of transparency and flexibility surrounding the awarding of public contracts.
Schools and trusts are among the public sector organisations now governed by the new legislation when they buy goods and services.
The Act – which came into effect on 24th February 2025 – simplifies procurement in England, Wales and Northern Ireland. Scotland has opted to retain its existing regulations, except in limited cases.
New rules
SBMs and SLTs should be aware of the new rules, and be signed up to the government’s Central Digital Platform as a Contracting Authority.
Additionally, schools must continue to observe the Public Services Social Value Act 2012. This requires them to consider the social, economic and environmental benefits of their purchasing decisions, rather than prioritising only the cheapest provider.
They must also bear in mind the National Procurement Policy Statement, which sets out the government’s strategic priorities for public procurement and how contracting authorities can support its delivery.
YPO – one of the UK’s largest public buying organisations – recommends that you document your rationale when awarding contracts and present a clear audit of how you have considered the NPPS for each individual procurement.
Key changes for schools
Schools will need to publish more notices at various stages – meaning more admin, but also improved transparency in terms of how public money is being spent. Schools will, however, be exempted from the requirement to publish payment notices after contracts are awarded.
Terminology updates
The Act also includes changes to terminology. ‘Direct award’, for example, will, in most cases, now be referred to as ‘award without competition’. The government’s new Central Digital Platform is an area where all available information is being brought together alongside key information regarding suppliers to the sector.
Simplied procedure options
To tackle procurement complexity, the available procedures have been reduced to three.
The competitive flexible procedure route, which allows you to create and design your own multi-stage process for awarding a contract.
Open procedure, meanwhile, is a single-stage tendering process with no shortlisting phase.
Finally, there are direct awards – now limited to specific circumstances, such as emergencies or instances when there is an overriding public interest.
Redefined frameworks and markets
Schools and trusts will still be able to develop and award contracts through frameworks and dynamic markets, now defined as:
- Open frameworks – which must be opened at least twice during a maximum duration of eight years, meaning schools can expect to be presented with fresh options at multiple points.
- Closed frameworks – which suppliers may only join at the start.
- Dynamic markets – brought in to replace dynamic purchasing systems and allow more flexibility when purchasing goods, services or work. Suppliers can join at any time, and they have no maximum term. Schools have an exemption with dynamic markets, in that they can be used for below-threshold contracts – which isn’t the case for the wider public sector – but they will require a tender notice for each procurement.
Publicly-owned YPO offers support free of charge to schools that establish contracts via its DfE-approved frameworks, and DPS that cover everything from the supply of food to cleaning services. Schools can contact YPO’s Education Team for in-depth, bespoke support with their procurement needs.
YPO highly recommends the free Transforming Public Procurement e-learning course, which is now available via the Government Commercial College’s website. Useful templates and further guidance can additionally be obtained though The Procurement Pathway, reachable via tiny.cc/ts143-P1.
Amy Shelley is an MCIPS-qualified Strategic Procurement Manager at YPO with more than 12 years’ procurement experience, specialising in goods, services and compliance.
