With the recent postponement of the Procurement Act, now scheduled to come into effect on 24 February 2025, we examine the opportunities for service providers and consider the wider implications for the housing sector.

On 12 September, the government announced a delay to the Procurement Act, to allow more time for the publication of their revised National Procurement Policy Statement, which will outline the key priorities and strategies aimed at improving the regulation of public procurement.

By now, we are all familiar with the aims of the Procurement Act and broadly welcome the move to a more efficient and accessible process. But what are the implications for service providers and how can the sector prepare ahead?

Keeping it simple, transparent and flexible

As discussed at September’s NHMF Service Provider Forum meeting, the Act is likely to provide greater clarity around procurement frameworks, which will improve the decision-making process and open the market up to new entrants.

With a focus on simplifying the previously complex EU regulations, the new Act will also lead to greater consolidation, with streamlined procurement routes designed to speed up the process and offer a more flexible approach for social housing providers.

Service providers will also benefit from more nimble systems, with registered providers having greater scope to implement procurement processes that meet their specific needs. This renewed focus on sourcing the best provider for the job, rather than wading through unnecessary red tape, is likely to create more freedom for clients to have direct dialogue with suppliers at the negotiation stage, which will lead to greater transparency and better outcomes for residents.

The focus on improving transparency includes new requirements for housing providers to share procurement data and ensure they are fully compliant at every stage of the process. This will include reporting on contract awards, publicly sharing information relating to the decision-making process and maintaining a level playing field – which is ultimately good news for service providers.

Social Value
Whilst social value has always been in the mix, the new Act is likely to put this front and centre, with more stringent requirements for registered providers to consider a variety of factors when awarding contracts – from community projects, sustainability and social outcomes.

This will mean a shift away from decisions based purely on price, to a more rounded approach, considering factors such as the impact on resident wellbeing, reducing the carbon footprint and scope for local job creation schemes. With this in mind, it is likely that service providers who can demonstrate a proven track record in delivering positive social value outcomes will benefit most from this proposed change to the Act.

Good news for SMEs

The new Act is also likely to place greater emphasis on reducing barriers to entry for SMEs. This is intended to create a less complex, more diverse supply chain that will encourage social housing providers to engage with local providers potentially reducing completion times and strengthening community ties.

Preparation is everything

Our latest Procurement drop-in session, hosted by Lee Maskell, (Equity Partner, FFT) provided some useful insights into the aims and objectives of the proposed Central Digital Platform (CDP), and explained why preparation is key.

Managed by the Central Digital and Data Office, the CDP’s aim is to reduce the administrative burden by creating a single repository where all materials, including ISO accreditations, procurement notices and information on smaller value projects can all be accessed in one place. This will provide greater visibility across all public works and facilitate the bidding process, making it easier to juggle multiple procurement projects simultaneously.

With service providers feeling broadly optimistic that this latest iteration will succeed where its predecessors have failed, there is still a lack of clarity around KPI measurement and reporting, and perhaps more importantly, how the system will cope with the inevitable stampede to register on 24 February. 

To echo Lee’s advice: Don’t wait for the Act to come into place – start now! Use the time between now and February to consider your approach to procurement and ensure you are fully compliant with the latest policies.

By ensuring your staff have the right tools in place to measure social value outcomes and stay across the new procurement frameworks, you can play a valuable role in helping the sector to build strong partnerships that will deliver better outcomes for residents and ensure the sector is in good shape.

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FREE Procurement Drop-in Sessions

SPF members can join our free online sessions where Procurement expert, Lee Maskell (FFT) will be on hand to answer your questions and do a deep dive into a particular aspect of the Procurement Act, whilst keeping you informed on any updates in the run-up to 24 February.

Upcoming dates

25 October: Conditions of participation – no more SQ or CAS

22 November: Contract Notices

More dates to be announced.

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Learn more about the benefits of joining our engaged community of service providers.