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MoD Procurement Transformation and the Procurement Act 2023

Jackson Leishman
Published - October 2, 2025
1:21 pm
Last Updated - October 28, 2025

Introduction to MoD Procurement and the Procurement Act 2023

Defence buying in the UK is changing fast. The Procurement Act 2023 introduces significant changes to procurement processes and marks a new era for MoD procurement. With the Procurement Act 2023 now in force—a key law passed by Parliament that affects the public sector and introduces a new procurement regime—the Ministry of Defence (MoD) is reshaping how it plans, competes, awards, and manages contracts. The goal is simple but ambitious: faster procurement, greater transparency, and a level playing field for a broader supplier base — from primes to innovative SMEs.

This new regime brings key changes, objectives, and benefits for both businesses and the public sector, including improved procurement processes, increased transparency, and alignment with government policy goals. For defence suppliers, understanding what has changed (and why) is now essential to staying compliant and competitive.

Key Procurement Act 2023 Changes That Impact MoD Procurement

The Act consolidates multiple regimes into a single framework and streamlines procedures down to two core routes: an Open Procedure for straightforward buys and a Competitive Flexible Procedure for complex requirements where MoD can design the stages, including negotiation. The Act is bringing significant changes for contracting authorities and suppliers. That flexibility, paired with stronger transparency duties, is intended to accelerate delivery while keeping competitions fair. The Act replaces previous public contracts regulations and creates a more transparent system for public procurement. Expect more notices across the lifecycle (pipeline, tender, award, modifications) and publication of large contracts with KPI reporting — all within a security-conscious approach for defence. The shift from MEAT to MAT (Most Advantageous Tender) also elevates quality, innovation, resilience, and social value alongside price.

What it means for suppliers: processes should move quicker; criteria are broader; and visibility is higher. Procurement decisions are now more focused on delivering outcomes, ensuring that authorities and suppliers are accountable for the benefits promised. Bids that balance technical excellence with credible delivery and societal impact are more competitive under MAT.

The implementation of the Act means that contracts created before its introduction remain under the previous regulations, while those created after are subject to the new framework.

Understanding the New Public Procurement Regulations

While there is one unified rulebook, defence is not identical to civilian procurement. The new law replaces the previous Public Contracts Regulations 2015, which were originally derived from European Union directives, marking a shift towards a more tailored domestic framework. The Act preserves specific derogations for defence and security, including national security exemptions, higher thresholds, and defined scenarios for direct awards in the interests of operational urgency or safety. Single-source (non-competed) defence contracts continue under the Single Source Contract Regulations (SSCR), so suppliers still need to navigate two regimes depending on the route to market. Contracts created or established before the new law came into force remain governed by the previous public contracts regulations, while those created after are subject to the new rules.

The defence scope is also broader: goods, works, or services that relate to the armed forces’ operational capability can be treated as defence contracts — even when adapted from commercial tech. That gives MoD the headroom to secure updates and continuity where it matters.

How the Procurement Act Guidance Applies to Defence Procurement

Government guidance and supplier-facing training lay out practical steps to bid well under the Act, with defence-specific notes clarifying thresholds, exemptions, and security considerations. The Cabinet Office plays a key role in providing knowledge and training resources, such as the Transforming Public Procurement Knowledge Drops, to help organisations understand and prepare for the new regulations. For suppliers, that translates into four priorities: update internal bid templates for MAT, refresh exclusion/compliance checks (including cyber), review and plan for compliance with new requirements, re-register and complete your single supplier profile on the central platform, and engage earlier with MoD during market sounding.

Action checklist:

Refresh qualification and proposal content to reflect MAT and transparency duties.
Address exclusion risks (e.g., past performance remediation) and ensure cyber credentials are current.
Re-register on the upgraded platform so your data is reusable across bids (“tell us once”).
Monitor pipeline and Preliminary Market Engagement (PME) notices and respond.
Ensure your organisation is ready for compliance by reviewing internal processes and planning for new requirements.
Follow official guidance, which supports government objectives and helps organisations align with social value and regulatory goals.

Simplifying the Stages of Procurement in the MoD

Early Engagement and Opportunity Identification

Under the Act, authorities publish pipeline information for planned projects above defined values. MoD is signalling upcoming opportunities (e.g., via the Defence Sourcing Portal), while PME notices ensure early market engagement is transparent. Suppliers can view opportunities early, allowing them to collaborate and form partnerships with other businesses and stakeholders to shape bids effectively. Engaging with local communities during this stage is valuable, as it helps address community-specific needs and ensures procurement strategies support local priorities. For suppliers, this window is the time to shape, partner, and prepare.

Tendering, Evaluation, and Award Stages

Competitions will be either open or flexible. In flexible competitions, MoD can design multiple phases and refine aspects of the process — with changes communicated to all bidders. Evaluation is framed around MAT, so articulation of whole-life value (technical, delivery, risk, social value) matters as much as price. Bids should clearly align with the contracting authority’s objectives and include a robust plan for how the contract will be delivered. After award, contracts above £5m are published with KPIs, and standstill remains in place. Contracts are monitored to ensure that outcomes are delivered as promised.

Contract Management and Delivery Oversight

Performance reporting is more prominent. Large contracts require annual KPI/performance disclosures; significant modifications and terminations are also more visible via notices. It is essential to ensure that contracted goods and services are delivered as agreed, with organizations needing to manage performance effectively to meet contractual obligations. Underperformance may affect future eligibility through stricter exclusion grounds and a debarment regime. Payment practices are central too, with 30-day terms flowing down supply chains — vital for SMEs. Managing money effectively throughout the supply chain is crucial to ensure timely payments and proper allocation of public funds.

Improving the Bidding Process in Procurement for Suppliers

The new regime aims to reduce red tape: fewer procedures, reusable supplier data, and more accessible routes to market. Frameworks and Dynamic Purchasing Systems (DPS) are used more strategically — often reopening or remaining open — so new entrants get regular on-ramps rather than waiting years. This approach especially benefits medium sized enterprises and businesses by making it easier to view and access opportunities, supporting broader participation in public procurement. The result is lower bid cost, more manageable competitions at call-off, and better cash-flow protections.

Where to focus:

Keep your supplier profile complete and current to cut admin across multiple tenders.
Target frameworks/DPS that reopen, so you can join when ready rather than missing a single window.
Build partnerships early (e.g., with primes or specialist SMEs) to assemble competitive teams for flexible procedures.

The Growing Importance of Social Value in Defence Contracts

Social value has moved from “nice to have” to mainstream — but MoD applies it with defence-specific nuance. The inclusion of social enterprises and voluntary organisations in defence procurement is now emphasized, creating new opportunities for these groups. Public sector buyers, including those in schools, are expected to integrate social value considerations into their procurement decisions, ensuring that the benefits of these commitments are realized not just for suppliers and authorities, but for the wider world. You’ll see themes like skills and apprenticeships (including support for veterans), environmental sustainability, and regional growth included where relevant. The key is credibility: link commitments to delivery plans and measure them through KPIs, because post-award reporting is part of the regime.

Practical ideas that resonate in defence:

Skills & inclusion: apprenticeships, STEM outreach, and supply-chain upskilling.
Sustainability: realistic carbon reduction plans, energy efficiency in assets/services, and waste minimisation.
Regional impact: UK supply-chain engagement (including SMEs) and levelling-up contributions tied to delivery locations.

MoD Procurement and Support for SMEs

SME access is a policy priority and now a legal duty for authorities to consider and reduce barriers. In practice, that means proportionate financial/insurance requirements, simpler data submissions, open/reopened frameworks, and prompt payment enforced down the chain. The MoD supports organisations, including SMEs, by helping them manage their participation in procurement processes through guidance, training, and systems that facilitate compliance and integration. MoD is also building internal support (e.g., DE&S initiatives aimed at integrating SMEs into delivery) to diversify its supplier base.

Frameworks and Routes to Market for SMEs

DPS: apply at any time; compete for call-offs within a qualified pool.
Re-opening frameworks: periodic on-ramps reduce “locked-out for years” risk.
Open/compliant competitions: more frequent use lowers participation burden for mid-sized projects.

For many newcomers, an indirect route via a prime’s supply chain remains a strong entry strategy — build references, gather performance data, then step into direct contracting when ready.

How DCI Contracts Helps Navigate MoD Procurement Transformation

DCI is purpose-built for defence suppliers and brings together the practical tools you need to operate confidently under the new regime:

Early intelligence and alerts: spot MoD pipeline items, PME activity, and live tenders — so you can engage sooner, view opportunities on the DCI platform, and prepare stronger bids.
Market and spend insight: understand buying patterns across MoD and defence bodies to prioritise frameworks, lots, and partners strategically.
Compliance guidance: track evolving requirements (e.g., cyber credentials, KPI reporting expectations, transparency notices) and reflect them in your bid templates. Always review your connection and security before accessing procurement tools to ensure your data and processes remain protected.
Supply-chain opportunities: identify relevant frameworks and primes, then position your capability where call-offs are actually happening.

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What’s Different Now — and What to Do Next

What changed

One unified regime; two procedures (Open, Competitive Flexible).
MAT replaces MEAT; transparency and KPI reporting scale up.
Defence retains security-driven derogations and higher thresholds; SSCR still applies to single-source.