Launched in February, PA23 brings major reform to public sector procurement by simplifying and modernising how contracts are awarded and replacing regulations derived from the European Union (EU)
In March, EiB attended APMP UK’s first BIDx® Roadshow of the year, focused on the implications of the Procurement Act 2023 (PA23)
With a range of experts, the APMP event included a panel discussion and roundtables, focusing on how buyers and bidders can meet the challenges and maximise opportunities of PA23. We’ve broken down headlines from the event to provide an overview of PA23.
Key topics
Competitive flexible procedure
Traditionally, buyers used restricted tender procedures, typically involving a pre-qualification questionnaire (PQQ) and Invitation to Tender (ITT). PA23 provides a competitive flexible procedure (CFP) for buyers to design their own process. This could include invitation to negotiate (ITN) and invitation to participate in dialogue (ITPD). Increasing transparency between buyers and bidders is a key focus of PA23, meaning ITNs and ITPDs are more likely.
The panel presented an interesting debate, considering whether some buyers will ‘play it safe’, while others may prefer the creativity. As dialogue is mandatory under PA23, it was also noted that buyers will have to formally explain why ITNs or ITPDs have not been included if not used. The panel stressed close alignment is needed between bid and sales teams to maximise the opportunity of frequent dialogue.
Pre-market engagement
As negotiation could take place before tender documents land, there was consensus across the panel that it was vital bidders assign the right resource for engagement. This could include upskilling bid teams to apply the requisite level of commercial nous to conversations with buyers. The panel expressed hope that engagement will be conversational, rather than short briefings with no opportunities to ask questions. The overall view concluded that pre-market engagement was one of the biggest shake-ups of PA23, with benefits and challenges for bidders.
Social value
PA23 updates the pre-existing Social Value Model, mandating at least 10% of tender scoring attributed to social value, creating a differentiation opportunity. Olivia Sutcliffe, Social Value Specialist at Savills Earth, noted that the bidders’ social value proposals should be “relevant, proportionate, add value and respond to local need”, utilising pre-market engagement to understand the buyer’s focus. There was agreement across the panel, with Martin Traynor OBE, former Small Business Crown Representative at the Cabinet Office, highlighting a previous Ministry of Justice (MoJ) ITT with a 20% social value scoring, but with a specific focus on the MoJ’s key social value drivers.
During the social value roundtable, it was agreed that understanding and demonstrating how the bidder’s values align with the buyer’s will be crucial. With pre-market engagement, bidders can explore differing approaches to create a long-lasting legacy relevant to the local community’s needs.
Artificial intelligence
Procurement Policy Note 17 (PPN17) specifies bidders can use AI but need to declare the software and how it has been used. Tricia Blatherwick, Chief Evangelist at AutogenAI, believes this notice is currently reflective of the nervousness around AI. Unanimously, the panel agreed AI will not replace bid writing, instead expediting processes such as dissecting documents and assessing written content against the scoring criteria. Tricia stressed technology will always need to be moderated, owing to potential inaccuracies and legal risks.
MEAT rather than MAT
The switch from MEAT to MAT is designed to assess bids on their quality, rather than the lowest price. Bidders on the PA23 in the built environment roundtable welcomed the change from MEAT to MAT, but expressed concern as to whether it will change things hugely, owing to the tight budgets public sector buyers generally have in procuring works/services.
Central digital platform
Another key feature of PA23 is the central digital platform (CDP), which will replace the current Find a Tender system. A key feature will be making it easier to complete PQQs, as bidders can now pre-populate 80% of generic PQQ questions by inputting company information. The CDP also aims to provide greater transparency on where public sector bodies are spending their money. There was an acceptance that the uptake of CDP has been slow thus far, recognising there has been a lack of understanding regarding supply chain information. Going forward with the CDP, bidders need to ensure any named supply chain partners in their submissions are signed up to the system.
Supporting SMEs
The round table focused on SMEs was slightly contentious, with one attendee stressing the SME mindset is different to larger organisations, with a more reactive approach to bidding. There was some criticism of traditional pre-market engagement exercises, as they were not sufficiently interactive, and this makes it difficult to entice sales personnel to attend.
Martin Traynor suggested SMEs should build their own sales pipelines by downloading the contracting authorities’ pipelines via the CDP. This will support bid/no bid decisions and effective planning.
Some of the criticism was countered by discussing buyers as SMEs, recognising they face the same resource/time challenges. The general view was that PA23 will make public sector bidding more viable for SMEs, but there could be some internal challenges in shifting mindsets and preparing accordingly.
Drawing upon insights from Lindsay Maguire – Deputy Director of Procurement Reform at the Cabinet Office
Lindsay provided valuable insight into the government’s aspirations for PA23, explaining its view of procurement as an enabler for economic growth. She expressed hope that pre-market engagement will result in more dynamic interactions between buyers and bidders and help both be less risk averse. Alongside greater visibility of spend through the CDP, she suggested the CDP will also be useful for buyers looking to procure specialist works, providing greater autonomy to tailor the process to their needs.
The plan is for the CDP to create a master register of all public sector contracts and place a spotlight on good, high-performing contracts, while also informing where centralisation is required. The PA23 has also created a Procurement Review Unit, responsible for investigating concerns raised over buyer or bidder behaviour.
Looking ahead to the future of PA23
The focus on pre-market engagement focus, it could be perceived as favouring incumbents, although some attendees noted pre-market engagement has been commonplace in the private sector and can create confidence around the bid/no bid decision. The insights gained through pre-market engagement can also enhance written responses.
Although we’ve gained insight to how PA23 will influence procurement, it will take some time to understand the full implications and how processes such as the CDP will be used.