Procurement Act 2023: Empowering Recruiting Councils to Prioritise Value and Sustainability in Tender Evaluations

​A new Procurement Act has been introduced to help simplify public procurement processes. This updated guidance also addresses challenges that emerged during the COVID-19 pandemic, particularly the need for more efficient and equitable procurement practices. For HR professionals, understanding these changes is essential for successfully navigating future recruitment and contracting procedures.

While the previous procurement process for the Public Sector prioritised procedural compliance, which may have, at times, overlooked true value for money and transparency, the new Act focuses on redefining terminology and aims to develop a more straightforward system that will provide contracting authorities additional flexibility to use their own discretion.

A significant part of this shift in terminology is the move from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender). This change reflects a wider understanding of ‘value’, incorporating not just cost but also non-monetary benefits such as social value. This approach will empower contracting organisations to make decisions with greater flexibility, allowing them to establish broader criteria for evaluating tenders in order to select the overall best value option.  It is hoped that these changes will also open up more opportunities for smaller businesses to provide services.

This is a promising development for local government as it will enable councils to assess tenders on what will truly add the most value to their organisation. Social and environmental impacts are important considerations in today’s society, and the value that these can hold should not be underestimated.

Many organisations are already considering their social and environmental responsibility and impact, and by including greater importance of these in tenders, organisations will be motivated to do more to improve in these areas. This may also increase the emphasis on assessing and documenting non-monetary benefits to measure and demonstrate additional value, such as using frameworks like the Themes, Outcomes, and Measures (TOMs).

As a local authority-owned business, Opus has long embraced the philosophy that underpins the new Procurement Act. As well as achieving long-term cost savings, we are committed to supporting the broader communities our councils serve. We have engaged in numerous activities to support individuals into work and raise the profile of public sector career pathways. This includes collaborating with schools, colleges, and universities to deliver career talks and mock interview sessions, attending careers fairs, and working with local employment services.

The Procurement Act 2023 represents a shift towards more value-driven, flexible procurement processes that consider the broader impact of public spending. The new landscape presents an opportunity for organisations to redefine their value proposition to the public sector. By highlighting their role in delivering social value and community benefits, alongside cost savings, they can align themselves with the evolving priorities of public sector procurement.