The Cabinet Office has confirmed that they are working towards a ‘go-live’ date for the Procurement Act of Monday 28 October 2024. This date will be formalised in commencement regulations expected to be made in May. 

So now begins the six-month preparation period during which we can expect the publication of further guidance on the Act to add to that already published and a suite of learning and development tools made available to procurement practitioners. 

The official e-learning product to support operational procurement staff in implementing the new regime has already been released. This is a selection of learning modules that can be accessed by registering with the Government Commercial College. 

A ‘Communities of Practice’ suite of online learning events is also being launched on 8 May which will provide a forum for procurement operational staff to exchange knowledge, learning and experience.

The latest guidance published relates to transitional arrangements. With the central aim of causing as little disruption as possible, further regulations (yes more regulations!) will set out the rules for which legislation applies to ongoing procurements and contracts awarded under the previous legislation. 

The fundamental principle is that procurements that commence after the entry into force of the Act must be conducted by reference to the Act only, whilst those that were commenced under the previous legislation must continue to be procured and managed under that legislation. 

The guidance clarifies what is meant by commencing a procurement. 

Any contracts awarded under the previous legislation will also continue to be managed under that legislation until such a time as the contract ceases to exist. So, for example, any amendments to contracts awarded under the Public Contracts Regulations 2015 (PCR 2015) will still need to be considered against Regulation 72 of the PCR 2015. 

Contracts awarded through a commercial purchasing tool under the previous legislation (i.e. framework agreement, dynamic purchasing system or qualification system (relevant to utilities)) will also continue to be managed in accordance with that legislation. 

The regulations will set out that any dynamic purchasing system and qualification system established under the previous legislation must come to an end as set out when they were established, or by 27th October 2028 whichever is earlier. Any contract awarded under such an arrangement will continue until it comes to an end and be managed by the previous legislation (even if the dynamic purchasing system or qualification system has terminated prior to that point). 

The regulations will also restrict the ability to extend a dynamic purchasing system or qualification system awarded under the previous legislation by providing that any dynamic purchasing system or qualification system extended after the Act comes into force can only be extended in the first twelve months after the Act comes into force and cannot be extended beyond 27 October 2028.  

Given that there will be a period of overlap during which commercial purchasing tools under the previous legislation will co-exist with the new, rather different ones under the Act, contracting authorities will need to be careful to identify the most appropriate tool to use and the applicable rules.

The guidance also provides some helpful clarifications on the effect of pipeline notices and prior information notices (periodic indicative notices for utilities) and the obligations in the Act in relation to the payments compliance notice (i.e. these will apply to all contracts awarded by a contracting authority, not those just awarded under the Act).  

See here to read the guidance in full and access all the other available guidance.