Understanding the Procurement Act 2023
The Procurement Act 2023 aims to make the award of public sector contracts more modern and efficient, bringing major changes and key changes to the UK’s procurement system. The Act modernizes public sector procurement by introducing new processes and standards. It aims to help more small and medium-sized enterprises, ensure openness and align public procurement with the national agenda. The Act is underpinned by new procurement regulations, which provide the detailed rules and legal framework for the new regime. The reform affects the Ministry of Defence (MOD), the NHS, local councils, and other public sector bodies as key government contracting authorities. Understanding these legislative changes is crucial for defence and security contracts in order to preserve operational capacity, compliance, and competitiveness, and requires a thorough understanding and adherence to the new procurement rules.
Strategic Implications for MOD and Defence Procurement
The Procurement Act brings up challenging problems for the weapons industry due to the importance of national security. MOD procurement is usually governed by special risk-related regulations, yet the new law still affects processes such as evaluating suppliers, issuing contract notices and handling debarment. Ensuring social value, opening up more opportunities for SMEs and making contract award notices more transparent are key enhancements. Defence suppliers should now be aware that exemptions granted for national security reasons require stronger justification. The revisions make it clear that contracting agencies handling defence contracts must act fairly and transparently.
Core Areas of Defence Compliance, Procurement Act 2023
Pre-Market Engagement Rules
While preliminary market engagement is now encouraged, the regulations surrounding it are now more strict. Before a tender, MOD vendors can speak with buyers, but they have to ensure they follow transparent and non-discriminatory rules. Besides boosting innovation, this change also requires everyone to follow standards for equal access and ethical procurement.
The Competitive Flexible Procedure Explained
The new competitive flexible approach, which replaces outdated approaches, gives purchasers greater flexibility in creating procurement strategies, which is especially beneficial for defence and security services. This approach encourages the use of competitive procedures and promotes the application of the same procurement procedures across different types of contracts, ensuring consistency and compliance. Flexibility, however, needs to be backed by transparent audit trails and equitable supplier treatment. This structured framework provides a harmony between creativity and responsibility.
Transparency and Disclosure Requirements
The Act stipulates that information about the intent to award, contract changes and performance results should be published on a regular basis. Defence providers must now expect to be closely monitored throughout the entire process of a contract. Sharing information on contract performance and assessment summaries is beneficial to the public, but it also means suppliers have to comply at all times.
Supplier Exclusion and Debarment Risk
Before awarding contracts, MOD buyers must confirm that a supplier is not included on the national debarment list. Some reasons for exclusion could be a history of poor results or poor performance, or not following regulations. Therefore, it is now even more important for companies to have a solid compliance record in all procurement activities, as contracting authorities have the power to exclude suppliers who do not meet compliance standards.
Complying Effectively: A Step-by-Step Framework
Track New Procurement Notices and Deadlines
Suppliers should regularly check the new central digital platform for any procurement opportunities. For defence procurement, it is important to be aware of tender timelines and notice types as early as possible, especially for big defence contracts and dynamic purchasing systems.
Audit Readiness and Documentation Best Practice
Tender responses must to be thoroughly documented, meet evaluation standards, and show value addition. Records demonstrating how contract changes or delivery schedules adhere to procurement laws and KPIs should be kept on file by suppliers.
Prioritise Cyber, ESG and Social Value Alignment
Environmental commitments, social value delivery, and Cyber Essentials Plus accreditation are now mandatory. Public sector purchasers, including the MOD, are directed by the new procurement regime to give preference to vendors who share national values such as community involvement and Net Zero, with social enterprises among the key beneficiaries of these changes.
Train Bid and Commercial Teams
It is important to be ready internally to comply with the Procurement Act 2023. It is important for bid writers and contract managers to know the terms, structures and rules for compliance in the legislation. Training helps to avoid rejection caused by mistakes or poor responses.
Risks of Non-Compliance in the New Regime
If companies do not follow the new procurement act, they may be excluded from tenders in defence and security, listed for debarment or denied a place on framework agreements. Furthermore, it might harm a Tier 1 contractor’s reputation, make it harder to access MOD or NATO-related work and disrupt its business activities in the defence sector, potentially impacting the supply chain and resulting in a loss of public benefit.
How DCI Helps Defence Suppliers Stay Compliant
DCI delivers real-time alerts for contracts that require defence compliance under the Procurement Act 2023. With early access to pre-market engagement opportunities, buyers’ historical award data, and notice tracking aligned to the new rules, DCI users gain a competitive advantage. Suppliers also benefit from intelligence around cyber compliance, ESG readiness, and award-winning bid models. This support ensures suppliers meet both current and evolving MOD Procurement Act 2023 changes, helping them make informed procurement decisions in line with the new Act.
DCI’s Defence Compliance Support Toolkit
Access Key Legal and Strategic Resources
DCI members can explore the full Procurement Act 2023 text, guidance documents from the Cabinet Office, and compliance manuals from the Crown Commercial Service (CCS). Access is also provided to DEFCON frameworks, MOD procurement policy guidelines, and NCSC best practice for digital security. For further information on procurement procedures, exemptions, or legal justifications, please refer to the provided resources and links.
Explore Our Specialist Compliance Tools
DCI’s Procurement Act-specific contract tracker helps suppliers filter defence contracts by compliance status. Additional tools include a checklist for ESG, cyber readiness, and supplier performance indicators—designed specifically for public sector contracts with a substantial defence element.
Navigate Defence Procurement with Confidence
The Procurement Act 2023 introduces a new era for UK defence procurement. With evolving procurement legislation, increased transparency, and enhanced buyer expectations, remaining compliant is critical. DCI supports defence suppliers by offering tailored procurement solutions, strategic insight, and unmatched visibility into MOD-specific tenders.
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