Procurement Rule Changes for Academies

Many of you would have seen the changes under the Procurement Act 2023 which came into force 24 February 2025. This replaces the four sets of legislation Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concession Contracts Regulations 2016 & Defence and Security Public Contracts Regulations 2011 to create one Act and a simpler approach. 

The Act aims to increase transparency, reduce prescriptive procedures and encourages competition within the public sector from a wider range of suppliers. This will impact the interaction between Academies and potential suppliers enabling more suppliers to work within the public sector more easily by removing the bureaucratic obstacles.  The main features include: 

• Increased flexibility in the procurement procedures, enabling trusts to tailor procurement requests for the needs and requirements of the trust. This should achieve better outcomes including value for money and allow smaller suppliers to engage with the public sector. 
• An updated digital platform, which will be a single point of reference for all public contracts and registered suppliers. A simple registration process, allowing suppliers to upload and access core business details easily.  
• Enhanced transparency requirements with a central tendering platform to publish opportunities for suppliers. Academies will be required to publish additional notices as part of the process.  
• Greater oversight. A Procurement Review Unit has been set up to maintain and monitor public procurement allowing a strong reference point to ensure Trusts reduce risk of using a supplier who is unsuitable. 
• Shift from assessing tenders from the most economically advantageous tender to most advantageous tender, which allows for a wider evaluation process and consideration of factors beyond price. 
• Requirement to publish contracts over £5million with sensitive information hidden. A minimum of three key performance indicators should be included in the contract and the trust must report on them annually. Additionally, there is a change in the standstill period for the decision on the awarding of the contract now being a minimum of 8 working days.  
• Exemptions are available under the Act and special regimes are included. The financial thresholds are similar to those referred to in the previous legislation. 

What to do next

Review the procedures within your finance manual and internal procedures ensuring that the relevant updates are made to ensure you comply with the Act.  

Consider the Act in its entirety and seek out training. Currently the cabinet office off a free e-learning service to access information when Acts change. All staff involved within the procurement services in academies are encouraged to sign up to the cabinet procurement learning tool Transforming Public Procurement: the official learning and development offer – GOV.UK. Also, the get help area of the DfE website under buying in schools is also encouraged. Use the tools available to enable the trust to benefit from efficiencies within the legislation. Request help and support for your procurement 

Consider current contracts when they are available for renewal to ensure the requirements under the Act are met.