On February 24, 2025, new rules came into force in the UK transforming the public procurement landscape. The new regime aims to provide a simplified and flexible framework for contracting authorities when conducting procurement processes, including the purchase of medicinal products by the National Health Service (NHS).
Under the new Act, a number of elements of the procurement processes have changed, and we set out the background in our previous post. For tenderers, the changes are mainly procedural, including the framework for the tender process and the timelines, rather than fundamental changes to how the procurement will operate. Nevertheless, it is important to take note of the new procedures. We set out some of the key aspects in our Advisory.
Key takeaways
- The Procurement Act 2023 consolidates the previous public procurement legislation into a single framework and came into force on February 24, 2025.
- The new procedures give much more flexibility to authorities in how to run the tender. Authorities may take advantage of the competitive flexible procedure to negotiate and discuss tenders with suppliers, but can only do so within the scope of the tender notice. We are increasingly seeing more complex processes being used by the NHS.
- Potential bidders can expect more early market engagement from contracting authorities. Make sure you review pre-tender notices as they give important information about the proposed tender.
- Suppliers should familiarize themselves with the new exclusion grounds, and if any of those apply, should be prepared to provide explanations and mitigations in their tenders. Similarly, suppliers should review the KPIs associated with any new contract, and be aware that their performance may be publicized in a contract performance notice. There is a focus on “underperformance;” it is currently unclear how product shortages would be seen under these provisions.
- Framework agreements can be longer, and allow for new suppliers to be added within the lifetime of the framework agreement. The NHS has already been seeking to include this flexibility in existing tenders.
- The deadlines to issue the claim form for a challenge are still very short (30 days from when the grounds arose), and it is important to be organized and prepare your evidence and contemporaneous notes throughout the tender process.
- Remember that the NHS may also publish clinical guidance alongside the tender, and this may be subject to separate challenge or procedures.