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Navigating the Procurement Act 2023

Navigating the Procurement Act 2023: Immediate Steps for SMEs in Digital Healthcare

As a leading digital healthcare consultancy, with 80% of our client base consisting of NHS customers, we have been closely monitoring government updates regarding the Procurement Act 2023. This Act, which came into effect on 24th February 2025, introduces key considerations for our sector.

Historically, the NHS has allocated a smaller proportion of its budget – around 20% – to small and medium-sized enterprises (SMEs) compared to other government departments. This has often been attributed to restrictive compliance rules, closed frameworks, excessive bureaucracy and confusion for new market entrants. The new procurement regulations aim to make public sector contracts more accessible to SMEs and encourage a greater number of bids.

1. Future-proofing Access to Frameworks

We are currently listed on several frameworks and Dynamic Purchasing Systems (DPS), including CCS, LPP, NHS SBS and HealthTrust Europe-hosted agreements. The Procurement Act introduces a shift towards more open frameworks, designed to remain accessible in the long term and allow new suppliers to join at any point during the framework’s lifecycle.
It is common for vendors to express frustration when requests for proposals (RFPs) are routed through obscure frameworks, which may be closed to new entrants for up to four years. These frameworks often have limited entry windows, effectively preventing smaller or newer suppliers from accessing substantial business opportunities. This, in turn, can result in the NHS missing out on innovative suppliers offering competitive prices.

SmartCo Top Tip: Although existing agreements can still be used, it is crucial to research and plan for future open frameworks. Most major framework providers share their release plans on their websites, making it easier to stay informed.

2. Understanding Debarment and Compliance Requirements

The Procurement Act 2023 imposes stricter rules to exclude suppliers from public procurement if they pose specific risks. In cases of major breaches, suppliers risk being added to the new central debarment list, leading to automatic exclusion from all public procurement contracts for up to five years. There are also discretionary and mandatory exclusion measures related to competition practices.

SmartCo Top Tip: To avoid exclusion or debarment on competition grounds, it is essential to have a thorough understanding of competition law and ensure full compliance

3. Signing Up for the Find a Tender Platform

Find a Tender is the central digital platform for tenders and business registration, which has been updated in line with the new Act. Suppliers must re-register on the updated platform to access its new features. The platform stores compliance information that contracting authorities require to allow access to bids. Once registered, this information can be reused multiple times.

SmartCo Top Tip: The registration process is quick and straightforward, so we recommend completing it as soon as possible. Registration can be found on the GOV.UK website.

SmartCo Summary

These are essential steps to ensure you are fully prepared for the Procurement Act. It’s crucial to remain agile to avoid missing opportunities while staying ahead of the additional compliance requirements. There are also other key changes to consider, including new evaluation criteria, social value considerations, increased transparency and a simplified bidding process. These should be carefully balanced with the new opportunities the Act presents, particularly its emphasis on SME inclusion and open market principles.

About SmartCo Consulting

SmartCo is a consultancy business specialising in the delivery of digital transformation projects for large private and public sector organisations. We offer advisory, project delivery and optimisation services across a range of industries including Healthcare, Consumer & Retail, Media & Telco and Financial Services.

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If you'd like to discuss how SmartCo can support and guide you in relation to the Procurement Act 2023, please contact us today.

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