Procurement Act 2023

PART 1Key definitions

1Procurement and covered procurement

2Contracting authorities

3Public contracts

4Valuation of contracts

5Mixed procurement: above and below threshold

6Utilities contracts

7Defence and security contracts

8Concession contracts

9Light touch contracts

10Mixed procurement: special regime contracts

PART 2Principles and objectives

11Covered procurement only in accordance with this Act

12Covered procurement: objectives

13The national procurement policy statement

14The Wales procurement policy statement

PART 3Award of public contracts and procedures

CHAPTER 1Preliminary steps

15Planned procurement notices

16Preliminary market engagement

17Preliminary market engagement notices

18Duty to consider lots

CHAPTER 2Competitive award

Terms of a procurement

19Award of public contracts following a competitive tendering procedure

20Competitive tendering procedures

21Tender notices and associated tender documents

22Conditions of participation

23Award criteria

24Refining award criteria

25Sub-contracting specifications

Exclusions and modifications

26Excluding suppliers from a competitive award

27Excluding suppliers from a competitive flexible procedure

28Excluding suppliers by reference to sub-contractors

29Excluding a supplier that is a threat to national security

30Excluding suppliers for improper behaviour

31Modifying a section 19 procurement

Reserving contracts to certain suppliers

32Reserving contracts to supported employment providers

33Reserving contracts to public service mutuals

Awarding contracts by reference to dynamic markets

34Competitive award by reference to dynamic markets

35Dynamic markets: establishment

36Dynamic markets: membership

37Dynamic markets: removing members from the market

38Dynamic markets: fees

39Dynamic market notices

40Qualifying utilities dynamic market notices: no duty to publish a tender notice

CHAPTER 3Direct award

41Direct award in special cases

42Direct award to protect life, etc

43Switching to direct award

44Transparency notices

CHAPTER 4Award under frameworks

46Frameworks: competitive selection process

47Frameworks: maximum term

48Frameworks: implied terms

49Open frameworks

CHAPTER 5After award, standstill periods and notices

50Contract award notices and assessment summaries

51Standstill periods on the award of contracts

52Key performance indicators

53Contract details notices and publication of contracts

CHAPTER 6General provision about award and procedures

Time limits and termination

55Procurement termination notices

Technical specifications

56Technical specifications

Excluding suppliers

57Meaning of excluded and excludable supplier

58Considering whether a supplier is excluded or excludable

59Notification of exclusion of supplier

60Investigations of supplier: exclusion grounds

61Investigations under section 60: reports

62Debarment list

63Debarment decisions: interim relief

64Debarment list: application for removal

65Debarment decisions: appeals

66Debarment proceedings and closed material procedure

PART 4Management of public contracts

Terms implied into public contracts

67Electronic invoicing: implied term

68Implied payment terms in public contracts

Notices about payments and performance

69Payments compliance notices

70Information about payments under public contracts

71Assessment of contract performance

Sub-contracting

72Sub-contracting: directions

73Implied payment terms in sub-contracts

Modifying public contracts

74Modifying a public contract

75Contract change notices

76Voluntary standstill period on the modification of contracts

77Publication of modifications

Terminating public contracts

78Implied right to terminate public contracts

79Terminating public contracts: national security

80Contract termination notices

PART 5Conflicts of interest

81Conflicts of interest: duty to identify

82Conflicts of interest: duty to mitigate

83Conflicts assessments

PART 6Below-threshold contracts

84Regulated below-threshold contracts

85Regulated below-threshold contracts: procedure

86Regulated below-threshold contracts: duty to consider small and medium-sized enterprises

87Regulated below-threshold contracts: notices

88Regulated below-threshold contracts: implied payment terms

PART 7Implementation of international obligations

89Treaty state suppliers

90Treaty state suppliers: non-discrimination

91Treaty state suppliers: non-discrimination in Scotland

92Trade disputes

PART 8Information and notices: general provision

93Pipeline notices

94General exemptions from duties to publish or disclose information

95Notices, documents and information: regulations and online system

96Electronic communications

97Information relating to a procurement

98Record-keeping

99Data protection

PART 9Remedies for breach of statutory duty

100Duties under this Act enforceable in civil proceedings

101Automatic suspension of the entry into or modification of contracts

102Interim remedies

103Pre-contractual remedies

104Post-contractual remedies

105Post-contractual remedies: set aside conditions

106Time limits on claims

107Part 9 proceedings and closed material procedure

PART 10Procurement oversight

108Procurement investigations

109Recommendations following procurement investigations

110Guidance following procurement investigations

PART 11Appropriate authorities and cross-border procurement

111Welsh Ministers: restrictions on the exercise of powers

112Northern Ireland department: restrictions on the exercise of powers

113Minister of the Crown: restrictions on the exercise of powers

114Definitions relating to procurement arrangements

115Powers relating to procurement arrangements

PART 12Amendments and repeals

116Disapplication of duty in section 17 of the Local Government Act 1988

117Single source defence contracts

118Concurrent powers and the Government of Wales Act 2006

120Power to disapply this Act in relation to procurement by NHS in England

120APower to disapply this Act in relation to procurement by NHS in Wales

121Power to amend this Act in relation to private utilities

123Interpretation

124Index of defined expressions

125Power to make consequential, etc, provision

127Commencement

SCHEDULE 1Threshold amounts

1(1) The threshold amount for a contract of a type...

2An appropriate authority may by regulations amend this Schedule for...

3An appropriate authority may by regulations amend this Schedule for...

4A contract is a “works contract” if its main purpose...

5(1) In this Schedule— “central government authority” means a contracting...

SCHEDULE 2Exempted contracts

PART 1Counterparty exempted contracts

2Vertical arrangements

3Horizontal arrangements

4Defence and security contracts

5Utilities contracts

6(1) A utilities contract awarded for the supply of goods,...

PART 2Subject-matter exempted contracts

8Land and buildings etc

10A contract for the broadcast (by any means) by a...

11Electronic communications services

12A contract the main purpose of which is permitting a...

13Alternative dispute resolution

14Legal services

15Financial services

16(1) A contract for the provision or carrying out of...

17A contract for the provision of services by the Bank...

19Any other contract between a contracting authority and an individual...

20Emergency services

21Public passenger transport services

22Research and development services

23International agreements and organisations

24A contract awarded under a procedure— (a) adopted by an...

25National security

26Intelligence activities

27Defence and security contracts

28A defence and security contract where— (a) the supplier is...

29A defence and security contract awarded under a procedure adopted...

30A defence and security contract awarded under an arrangement between...

31Utilities contracts

32A utilities contract for the supply of water to a...

33A utilities contract for the supply of energy, or fuel...

34A contract for the supply of goods, services or works...

35Concession contracts

36(1) A concession contract that— (a) confers an exclusive right...

37A concession contract for the provision of public passenger transport...

38Commercial contracts of the City of London

SCHEDULE 3Estimating the value of a contract

3Concession contracts

4Anti-avoidance

5Cases where estimate not possible

SCHEDULE 4Utility activities

PART 1Activities that are utility activities

5Ports and airports

6Extraction of oil and gas and exploration for, or extraction of, coal or other solid fuels

7Interpretation of Schedule

PART 2Activities that are not utility activities

8Generation of electricity in England, Scotland or Wales.

9Production of electricity in England, Scotland or Wales.

10Wholesale or retail sale of electricity in England, Scotland or...

11Wholesale or retail sale of gas in England, Scotland or...

12Exploration for oil in England, Scotland or Wales.

13Exploration for natural gas in England, Scotland or Wales.

14Production of oil in England, Scotland or Wales.

15Production of natural gas in England, Scotland or Wales.

16Development of infrastructure for production of oil in England, Scotland...

17Development of infrastructure for production of natural gas in England,...

SCHEDULE 5Direct award justifications

1This Schedule contains the direct award justifications.

2Prototypes and development

3In paragraph 2, “novel goods or services” means goods or...

4Single suppliers

5The following conditions are met in relation to the public...

6The following conditions are met in relation to the public...

7Additional or repeat goods, services or works

8The public contract concerns the supply of goods, services or...

9In paragraphs 7 and 8— “existing goods, services or works”...

11Advantageous terms on insolvency

12A supplier is “undergoing insolvency proceedings” if it has—

14For the purpose of paragraph 13, urgency is unavoidable if...

15User choice contracts

16In paragraph 15, “user choice services” means services—

17The conditions are that— (a) the individual to whom the...

18Defence and security

19(1) The following conditions are met in relation to the...

20The following conditions are met in relation to the public...

SCHEDULE 6Mandatory exclusion grounds

1A mandatory exclusion ground applies to a supplier if the...

2Corporate manslaughter or corporate homicide

4Theft, fraud, bribery etc

5An offence at common law of conspiracy to defraud.

6An offence under any of the following sections of the...

7An offence under any of the following sections of the...

8An offence under section 3 of the Theft Act 1978...

9An offence under section 5 of the Theft (Northern Ireland)...

10An offence under Article 172 or 172A of the Road...

11An offence under section 58 of the Civic Government (Scotland)...

12An offence under section 113 of the Representation of the...

13An offence under section 178 of the Road Traffic Act...

14An offence under section 327, 328 or 329 of the...

15An offence under section 2, 3, 4, 6 or 7...

16An offence under section 993 of the Companies Act 2006...

17An offence under section 1, 2 or 6 of the...

18An offence under section 49 of the Criminal Justice and...

19Labour market, slavery and human trafficking offences

20An offence under the Employment (Miscellaneous Provisions) (Northern Ireland) Order...

21An offence under section 31(1) of the National Minimum Wage...

22An offence under the Gangmasters (Licensing) Act 2004 (offences relating...

23An offence under section 1, 2, 4 or 30 of...

24An offence under section 1, 4 or 32 of the...

25An offence under section 1, 2 or 4 of the...

26An offence under section 27 of the Immigration Act 2016...

27Organised crime

28An offence under section 45 of the Serious Crime Act...

30(1) An offence under the law of any part of...

31An offence under section 45 or 46 of the Criminal...

32Cartel offence

33Ancillary offences

34Offences committed outside the United Kingdom

PART 2Other mandatory exclusion grounds

35National security

36Misconduct in relation to tax

37(1) A mandatory exclusion ground applies to a supplier if...

38(1) A mandatory exclusion ground applies to a supplier if—...

39(1) A mandatory exclusion ground applies to a supplier if...

40(1) A mandatory exclusion ground applies to a supplier if...

41Competition law infringements

42Equivalents outside the United Kingdom

43Failure to cooperate with investigation

44Excluded matters

SCHEDULE 7Discretionary exclusion grounds

1Labour market misconduct

2A discretionary exclusion ground applies to a supplier if the...

3A discretionary exclusion ground applies to a supplier if the...

4Environmental misconduct

5Insolvency, bankruptcy, etc

6A discretionary exclusion ground applies to a supplier if the...

7Potential competition infringements

8A discretionary exclusion ground applies to a supplier if the...

9(1) A discretionary exclusion ground applies to a supplier if—...

10(1) A discretionary exclusion ground applies to a supplier if...

11Professional misconduct

12Breach of contract and poor performance

13Acting improperly in procurement

14National security

15Excluded matters

17Other terms used in this Schedule and defined in Schedule...

SCHEDULE 8Permitted contract modifications

1Provided for in the contract

2Urgency and the protection of life, etc

3Assume, for the purposes of paragraph 2, that the contract...

4Unforeseeable circumstances

5Materialisation of a known risk

6In paragraph 5, a “known risk” means a risk that—...

7In considering whether awarding a new contract would be in...

8Additional goods, services or works

9Transfer on corporate restructuring

10Defence authority contracts

11A modification of a defence authority contract is a permitted...

SCHEDULE 9Treaty state suppliers (specified international agreements)

1The Agreement on Government Procurement signed at Marrakesh on 15...

2Agreement establishing an Association between the United Kingdom of Great...

3Trade Agreement between the United Kingdom of Great Britain and...

4Trade and Partnership Agreement between the Government of the United...

5Economic Partnership Agreement between the CARIFORUM States, of the one...

6Trade Agreement between the United Kingdom of Great Britain and...

7Agreement Establishing an Association between the United Kingdom of Great...

8Free Trade Agreement between the United Kingdom of Great Britain...

9Strategic Partnership and Cooperation Agreement between the United Kingdom of...

10Partnership, Trade and Cooperation Agreement between the United Kingdom of...

11Political, Free Trade and Strategic Partnership Agreement between the United...

12Agreement between the United Kingdom of Great Britain and Northern...

13Partnership, Trade and Cooperation Agreement between the United Kingdom of...

14Agreement on Trade Continuity between the United Kingdom of Great...

15Free Trade Agreement between the United Kingdom of Great Britain...

16Trade Continuity Agreement between the United Kingdom of Great Britain...

17Strategic Partnership, Trade and Cooperation Agreement between the United Kingdom...

18Free Trade Agreement between the United Kingdom of Great Britain...

19Trade and Cooperation Agreement between the United Kingdom of Great...

20Partnership, Trade and Cooperation Agreement between the United Kingdom of...

21Partnership, Trade and Cooperation Agreement between the Government of the...

22Free Trade Agreement between Iceland, the Principality of Liechtenstein and...

23Free Trade Agreement between the United Kingdom of Great Britain...

24Free Trade Agreement between the United Kingdom of Great Britain...

25Comprehensive and Progressive Agreement for Trans-Pacific Partnership, signed at Santiago...

SCHEDULE 10Single source defence contracts

1The Defence Reform Act 2014 is amended as follows.

2Definition of qualifying defence contract

3Pricing of qualifying defence contracts

4(1) Section 16 (pricing of contracts: supplementary) is amended as...

5After section 21(2) (final price adjustment) insert—

6In section 22(1)(a) (recovery of unpaid amounts), after “section” insert...

7(1) Section 42 (single source contract regulations: general) is amended...

8In section 43 (interpretation etc), at the appropriate place insert—...

9Contract profit rate

10(1) Section 18 (contract profit rate: supplementary) is amended as...

11(1) Section 19 (rates etc relevant to determining contract profit...

12Allowable costs

14In section 43 (interpretation etc), in the definition of “financial...

15Qualifying sub-contracts

16In section 30(4)(a) (application of single source contracts regime to...

17In section 31(3) (compliance notices)— (a) in paragraph (e), omit...

18Powers of the Single Source Regulations Office (“SSRO”)

19After section 35 insert— Guidance The SSRO may issue such guidance as it considers appropriate...

20In paragraph 10(3) of Schedule 4 (procedure of the SSRO),...

SCHEDULE 11Repeals and revocations

1Primary legislation

2Sections 39 and 40 of the Small Business, Enterprise and...

3The Trade (Australia and New Zealand) Act 2023.

4Subordinate legislation

5The Public Contracts Regulations 2015 (S.I. 2015/102).

6The Concession Contracts Regulations 2016 (S.I. 2016/273).

7The Utilities Contracts Regulations 2016 (S.I. 2016/274).

Procurement Act 2023

2023 Chapter 54

An Act to make provision about procurement.

[26th October 2023]

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—