Procurement Act may make it difficult for SMEs to tender for work

The Government announced on 12 September 2024 that the implementation date for the Procurement Act 2023 (the Act) has been delayed. Initially due to be implemented next month, on 28 October 2024, the Act will now come into force on 24 February 2025

You will be aware that the Procurement Act is a new public sector procurement bill . It aims to reform and reset the current EU-based laws on public procurement of goods and services within the UK. The Act aims to simplify the procurement process, increase transparency, and facilitate SME participation. There will also be an emphasis on social value and policy goals related to sustainability, climate change, and social inclusion.

National Maritime partners concerns relate to when they are contracted to prepare either feasibility or FEED studies (Front End Engineering and Design) to enable local authorities, in particular , to understand the scale and cost of maritime projects. This will normally be either new build or conversion of existing vessels.

Partners have been alerted by two different local authority bodies that the new act could make it difficult for them to be allowed to tender for work within the government sector on projects for which they had been a part of building the specification, as this may be deemed to be an unfair advantage within the new Procurement Act.

This question has been raised with the National Shipbuilding Office and we are advised that the department has been tracking this issue with a couple of councils, but they have not yet developed new guidance.