Guidance

Procurement at FCDO: Procurement Act 2023

Updated 14 May 2025

What is the Procurement Act 2023?

The Transforming Public Procurement programme is improving the way public procurement is regulated with the introduction of the Procurement Act 2023. This is legislation designed to modernise the existing system, ensuring that public funds are utilised more effectively and every pound goes further for our public services. 

It reforms the UK’s public procurement regime to:

• create a simpler and more flexible commercial system that better meets our country’s needs while remaining compliant with our international obligations
• open up public procurement to new entrants such as small businesses and social enterprises so that they can compete for and win more public contracts
• embed transparency throughout the commercial lifecycle so that the spending of taxpayers’ money can be properly scrutinised

The Act focuses on simplifying public procurement for public benefit, transparency, scrutiny and value for money.

The Act went live on 24 February 2025 and affects all FCDO commercial and procurement activity in the UK or Overseas.

Existing contracts

Existing contracts, frameworks and Dynamic Purchasing Systems will continue under the previous procurement regulations. This means there will be a transition phase where both sets of regulations will apply depending on when the contract was tendered. This will continue until all contracts awarded under the previous rules have come to an end. In the case of Dynamic Purchasing Systems, irrespective of their originally intended end dates and any included extension options, these must conclude by 23 February 2029.

How suppliers may see us do things differently

We are revising our commercial and procurement activity in line with the reforms introduced in the Procurement Act 2023. There will be no impact to existing contracts or any ongoing procurements tendered before 24 February 2025.

In order to align with the requirement of the Act, the following are changes you will start seeing from FCDO.

Notices

• visibility of commercial pipelines for all Contracting Authorities via the government’s Find a Tender Service (FTS). The first of these will be published by 26 May 2025
• use of a preliminary market engagement notice to inform the market of engagement scheduled to happen or to inform the market of engagement carried out to date.  This could involve face to face or virtual events, surveys/questionnaires or one to one dialogue between suppliers and FCDO. This engagement may be used to assist
  • developing our requirements and approach to the procurement
  • designing a procedure, conditions of participation or award criteria
  • preparing the tender notice and associated tender documents
  • identifying suppliers that may be able to supply the goods, services or works required
  • identifying likely contractual terms
  • building capacity among suppliers in relation to the contract being awarded
• publishing details of organisations who bid for a tender including those who have been unsuccessful
• increased visibility of when we make certain changes to contracts – before we make them – in a contract change notice
• later in 2025, notices that include information about contract performance and payments made under contracts
• the Act allows information, including notices, not to be published where there are grounds to withhold this information for reasons of commercial sensitivity or where it is necessary for the purposes of safeguarding National Security

Competitive tendering processes

• more flexible commercial frameworks, for example, an open framework that can be opened during its life-span to add new entrants to the market (will be considered for future FCDO frameworks)
• competitive flexible procedure – where FCDO can design its own procurement process to best fit what is being procured and the marketplace in which is it being bought. This is likely to include approaches which could involve negotiation, site visits, presentations, dialogue or initial outline bids, where this best meets the needs of FCDO. In other cases, the competitive flexible procedure may look similar to the current open or restricted procedures with the inclusion of a preferred bidder stage and/or negotiation phases

Supplier registration

• the free to use Find high value contracts in the public sector central digital platform (CDP) will be where all UK contracting authorities publish information relating to procurement
• the CDP is the place for suppliers to find out what opportunities are coming that they might wish to bid for. It will provide details on contracts that have been let, how contracts are being changed and other useful information. Additionally, suppliers will use the central digital platform to register, input and then share their commonly used information as part of the procurement. Suppliers must register on the CDP in order to bid for FCDO opportunities which are above the public procurement thresholds
• bidding organisations only need to register at the point that they want to bid for a contract being tendered under the Procurement Act and only need to register once. You can register and submit information at any time and will need to ensure that the information provided is kept up to date
• suppliers will still need to access the FCDO supplier portal to submit their bid and access tender documents
• how-to manuals for suppliers that need to register on the platform are available at Information and guidance for suppliers and how-to videos can be accessed below
• a guide for suppliers: how to register an organisation and the first administrator in 3 easy steps:

a guide for suppliers: how to register an organisation and the first administrator in 3 easy steps

• a guide for suppliers: detailed walkthrough how an administrator completes and updates supplier information:

a guide for suppliers: Detailed walkthrough How an administrator completes and updates supplier info

Debarment

• the Procurement Act has introduced a new Debarment regime. Suppliers can be put on a public debarment list where their past behaviour or circumstances mean that they should not be allowed to participate in procurements or be awarded public contracts. This aims to minimise supplier related risks and incentivise companies to achieve excellent corporate compliance
• the Act also introduced for the first time the ability to exclude and debar a supplier where there is a potential threat to National Security. This could mean exclusion from a specific procurement, from delivering certain goods, services or works or debarment from all Public Sector work
• suppliers can also be excluded or debarred on the basis of past poor performance

Small and medium sized enterprises

• contracting authorities must have regard to the fact that small and medium-sized enterprises may face particular barriers to participation and must consider whether such barriers can be removed or reduced. Examples include:
  • no requirement for audited accounts unless required by Companies House
  • no requirement to have insurance in place prior to contract award
  • avoiding use of restrictive conditions of participation
  • allowing sufficient time for bid preparation
  • avoiding onerous multistage procedures where not required
• duty to consider lotting
  • the Act requires that Contracting Authorities give serious consideration to whether a requirement can be lotted and if it is possible and it is not lotted, then this will have to be explained in the tender notice
• the act makes it mandatory for public contracts to adhere to 30-day payment terms and this will be implied in every contract awarded under the new regulations regardless of what the contract says regarding payment terms. These terms are also implied into every public sub-contract. Suppliers will therefore be paid promptly unless an invoice is disputed

The FCDO buys a wide range of goods, services and works and these procurements are managed across a number of different commercial category teams. Suppliers may not see a uniform approach to procurement under the Act across all spend categories. More information on these teams is available below.

Commercial programme delivery

Providing commercial advice and procurement support to a wide range of international development and humanitarian programmes. Uses a combination of FCDO frameworks and competitive tendering procedures, to award contracts.

Estates, security and facilities management

Delivering complex Construction and Facilities procurement across the global estate. Uses a combination of FCDO Dynamic Purchasing systems, CCS frameworks and competitive tendering procedures.

Commonly used CCS frameworks

RM6378 Facilities Management and Security Services

RM 6165 Construction Professional Services

Digital, data and technology

Managing complex procurement programmes across FCDO enabling delivery of critical frontline DDaT services. Uses FCDO DPS and CCS frameworks with occasional use of competitive tendering procedures.

Commonly used CCS frameworks

RM 6089 Technology Products and Associated Services 2

RM 6100 Technology Services 3

RM 557.13 G-Cloud

RM 6116 Network Services

RM 6261 Mobile Voice and Data Services

RM 6263 Digital Specialists and Programmes

RM 3764.3 Cyber Security Services 3

RM 6194 Back Office Software

Corporate

Overseeing FCDO’s commercial delivery for all activity across the below category groups:

• corporate, including financial services, fleet, logistics, travel

• events, including ministerial and high-profile events

• people, including consultancy, professional services and contingent labour

Uses CCS frameworks with some competitive tendering procedures when required.

Commonly used CCS frameworks

RM6257 Physical, Technical and Support Services

RM6251 Supply of Energy 2

Links to government guidance

The Cabinet Office has developed a number of knowledge drops specifically for suppliers, and small and medium-sized enterprises and voluntary, community or social enterprise organisations:

Transforming Public Procurement – GOV.UK

For suppliers – part 1 – Youtube video

• main changes under the Procurement Act 2023
• benefits of the new procedures
• central digital platform
• supplier obligations
• key actions for suppliers

For suppliers – part 2 – YouTube video

• new requirements for contracting authorities
• central digital platform
• early market engagement
• value for money considerations
• changes to procurement procedures
• open frameworks and dynamic markets

For suppliers – part 3 – YouTube video

• supplier exclusion regime
• debarment list
• changes to how contracts are awarded and managed
• measures for prompt payment
• transparency and notice publication requirements
• procurement review unit

For SMEs and VCSEs – part 1 – YouTube video

• main changes under the Procurement Act 2023
• benefits of the new procedures
• how SMEs and VCSEs can demonstrate their capabilities
• increased opportunities for negotiation, engagement and innovation
• central digital platform
• supplier obligations
• key actions for suppliers

For SMEs and VCSEs – part 2 – YouTube video

• new requirements for contracting authorities
• central digital platform
• early market engagement
• value for money considerations
• changes to procurement procedures
• open frameworks and dynamic markets

For SMEs and VCSEs – part 2 – YouTube video

• supplier exclusion regime
• debarment list
• changes to how contracts are awarded and managed
• measures for prompt payment
• transparency and notice publication requirements
• procurement Review Unit

More detailed guidance aimed at practitioners but publicly available:

Procurement Act 2023 – Guidance Documents

Transforming Public Procurement Learning manual