Procurement Act 2023: What does it mean for suppliers in Wales?

What is the Procurement Act 2023?

The Procurement Act 2023 has been introduced in order to improve the way that public sector bodies spend money. The new Act aims to make the process simpler and streamlined, whilst increasing transparency and opening the procurement process up to the benefit of prospective suppliers of all sizes.

As detailed in the Explanatory Memorandum to The Procurement (Wales) Regulations 2024, ensuring ‘certainty, consistency and continuity for contracting authorities and suppliers, especially Welsh Small and Medium sized Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs)’ was a key element in the Welsh Government’s decision to join the UK Government’s Procurement Bill.

In our first blog, we looked at what the Procurement Act 2023 means for Wales, but of course, there will be a significant impact on suppliers.

What impact will the Procurement Act 2023 have on suppliers in Wales?

It is hoped that the new regime will be better for suppliers, for the following reasons:

• It will be easier to do business with the public sector by reducing and removing barriers for, and creating more competitive bidding opportunities for, Welsh SMEs, and improved prompt payment rules;
• Improved transparency with more information available to suppliers;
• Consistency ensuring cross-border business with England can continue without confusion;
• There is a specific duty on Welsh Contracting Authorities to have regard to the particular barriers facing SMEs and to consider whether those barriers can be removed or reduced;
• 30-day payment terms applying throughout public sector supply chains; and
• A single digital platform for suppliers to register some of their detail once, which can be replicated for multiple bids.

Only time will tell whether the new regime proves to be better for suppliers. However, there are a number of important actions that suppliers should be aware of.

What steps do I need to take as a supplier?

If you haven’t already, you will need to register on the Central Digital Platform (CDP), which will allow you to see all notices published under the act, and importantly, provide you with your unique supplier ID. You will only need to register once you want/ are ready to bid for contracts after 24 February 2025. The UK Government has recently posted a webinar for suppliers on how to get ready for supplier registration, including a live demonstration on the CDP. You can access the webinar here.

It is important to note that for suppliers in Wales, once you register on the CDP, you will need to upload your unique supplier ID to your Sell2Wales profile. The Welsh Government have published guidance on how to link your unique supplier ID with your Sell2Wales profile. This can be accessed here.

Under Regulation 5 of Procurement (Wales) Regulations 2024, Devolved Welsh Authorities (DWAs) must submit a notice, document or information to Sell2Wales, unless it is unavailable. Sell2Wales will forward correctly submitted notices to the CDP and the notices should be almost instantaneously posted on both platforms.

How can we help?

If you are a Welsh-based supplier or looking to supply in Wales and are concerned about how you may be impacted under the new legislation, our team of solicitors at Harding Evans can meet with you to discuss your needs at our Newport or Cardiff offices.

Get in touch today to learn more about how our solicitors can help.