The United Kingdom has a new piece of legislation called the Procurement Act 2023. It replaces the earlier guidelines derived from EU standards with a fresh approach for public procurement. The Act modernises and simplifies procurement. The new Act seeks to provide public sector purchasers and suppliers more flexible, open, and easily available procurement options.
The Procurement Act 2023 is intended to better correspond with the UK’s interests following Brexit. It now emphasises innovation and value for money more heavily. It’s also meant to simplify procurement procedures for small and medium-sized businesses (SMEs).
What is defence procurement?
Defence procurement is the process by which governments and the defence sector purchase infrastructure, equipment, and services that promote national security. Defence procurement uses procedures governed by rigorous standards. This guarantees openness, competitiveness, and value for money as well as safeguards of the national security interests of the UK. The Defence and Security Public Contracts Regulations (DSPCR) is one instance of a framework used in defence procurement.
The Procurement Act 2023 — Defence implications
Within the new Procurement Act 2023, there are key changes that have direct impacts on defence suppliers who are looking to secure defence and security contracts. Read on to learn about the important changes in the new Act that defence and security suppliers need to be aware of. Find out how organisations like Defence Contracts International (DCI) can help defence suppliers with the new rules and regulations that have been introduced by the 2023 Act.
Simplified procurement processes for defence contracts
The Procurement Act 2023 has introduced a single regulatory framework that has replaced a number of separate security and defence legislation regulations. These include the Public Contracts Regulations (PCR) 2015, the Utilities Contracts Regulations (UCR) 2016, and the DSPCR 2011. Having a consolidated regulatory framework means that there is now more flexibility in competitive procedures, as well as a simplified process to make it easier for defence suppliers to secure tenders.
Greater focus on the UK’s national security
The Procurement Act 2023 contains an increased scrutiny of suppliers than previous versions. This is to ensure that suppliers align with UK national security policies. The new Act also aims to increase transparency in the process of awarding defence and security contracts, with the aim of safeguarding sensitive information.
Preference for UK-based & allied suppliers
The new Act means there will be a stronger emphasis on domestic supply chains and sovereign capability. this means that domestic UK-based suppliers and their allies will be given preference over foreign and international suppliers bidding for UK defence tenders. This will mean stricter criteria for foreign suppliers and higher scrutiny of supply chain security to help mitigate national security risks.
Increased use of Framework Agreements & Dynamic Purchasing Systems (DPS)
The new Act means that the Ministry of Defence (MOD) will rely more on pre-approved supplier lists. It will also allow more opportunities for SMEs to join defence frameworks.
Stricter Supplier Exclusion & Cybersecurity Requirements
The new Act has tighter rules regarding aspects such as past performance, ethical procurement, and supply chain risks. It has become mandatory for defence suppliers to obtain Cyber Essentials certification.
Easier procurement process
The new Act has introduced a more flexible and tailored procurement process, allowing for more innovation and adaptability in defence projects. This is crucial in the defence and security sector — a sector where technological advancements and evolving threats require quick responses and tailored solutions.
The Act also simplifies procurement procedures, helping to reduce administrative processes and enabling faster procurement turnaround times. This is vital for optimising operational readiness and protecting the UK’s national security interests.
Broader societal impact
The new Act places more emphasis on social value and sustainability. This means that besides meeting technical and operational requirements, defence and security suppliers may need to demonstrate how their projects contribute to broader societal goals, such as environmental sustainability or community benefits.
The Procurement Act 2023: Shaping new defence and security contract opportunities
The new Act has introduced greater transparency, efficiency, and accessibility in public sector procurement. It streamlines processes, reduces bureaucracy, and encourages more competition, making it easier for businesses, especially SMEs, to engage with MOD contracts.
The Act also ensures defence procurement remains agile and adaptable to evolving threats and technological advancements. It focuses on innovation, security, and value for money.
What should defence suppliers do now?
What should defence suppliers do now that the new Act is in effect? How can they stay ahead of the new regulations and ensure that they are following the new processes correctly? We provide a comprehensive guide for companies looking to secure defence and security contracts.
Ensure compliance with new procurement rules
The first step you should take with regard to the new Act is to review and update your current bid strategies to make sure they align with The Procurement Act 2023. Make sure that you understand exclusion grounds and that you are meeting the new standards for procurement. Provide workshops and training for your employees who are involved in the procurement process and make sure that everyone is aware of what the new regulations mean for their specific roles.
Get listed on Defence Frameworks & DPS
It is important to make sure that you are listed on defence frameworks and DPS. Look for opportunities in key frameworks like RM6094 (an MOD Defence Sourcing Framework). Being listed in this framework enhances credibility and simplifies the bidding process for MOD contracts.
Additionally, leverage Dynamic Procurement Systems (DPS). By joining these procurement networks, you can gain easier access to defence contracts. You will also have improved visibility among government buyers, which can lead to long-term growth opportunities in the defence sector.
Strengthen supply chain security & cyber resilience
Ensure Cyber Essentials Plus certification. This will help you meet the UK MOD’s cybersecurity requirements for government and defence contracts. This certification is a mandatory standard that demonstrates robust cyber resilience by protecting against common online threats.
In addition to certification, you should aim to mitigate supply chain risks to comply with MOD due diligence standards. This includes conducting regular security assessments, implementing strict access controls, and ensuring third-party suppliers adhere to the same cybersecurity protocols.
Stay updated on defence procurement changes
Make sure to keep up to date on any changes in the sector. Follow trusted news sources and defence supplier organisations like Defence Contracts International (DCI).
Use DCI’s intelligence reports & tender alerts to monitor procurement trends.
Why choose DCI for defence procurement?
DCI is an internationally recognised organisation that helps businesses navigate the defence procurement landscape. A leading global provider of procurement solutions, our services include real-time contract alerts, compliance support, and market intelligence.
We used AI-driven insights and bidding tools to help organisations stay competitive, meet MOD requirements, and secure more contracts.
DCI also helps you understand and navigate the Defence and Security Public Contracts Regulations (DSPCR). We provide expert insights, compliance guidance, and real-time alerts that are specifically set up for you. Our platform features the latest regulatory updates, procurement thresholds, and competition requirements.
Are you an SME looking to win more MOD contracts? We provide tailored contract alerts, in-depth market intelligence, and bid support tools that can help you be more competitive in this landscape. Our platform features news about upcoming opportunities, competitor analysis, and MOD procurement trends, helping you with your strategy to win more public sector contracts.
How DCI can help you in the new procurement landscape
DCI provides a range of services and solutions with features that will help you stay aligned with the new Act easily. We provide daily access to MOD, defence primes, and NATO tenders. We also provide exclusive defence market intelligence to track procurement changes. We support you with expert bid and compliance guidance for The Procurement Act 2023.
Other features we provide include Live Defence Contract Alerts, which notify you immediately about tenders aligned with your sector. Our Market Intelligence Reports help you stay ahead of industry trends and defence policy changes. Our Framework & DPS Listings help you find and apply for relevant MOD frameworks. Our Defence Procurement Intelligence can give you a competitive advantage.
When you join DCI, you are automatically looped into MOD Supply Chains & Frameworks. This can offer your business significant advantages. You will have access to government contracts, streamlined procurement processes, and enhanced credibility within the defence sector.
Other advantages of utilising DCI’s services include increased visibility and more networking opportunities. DCI also provides a structured framework that helps you ensure compliance with industry standards and security requirements.
Cybersecurity requirements
DCI’s software will also help you with your cybersecurity requirements in defence procurement. We provide real-time threat intelligence, compliance monitoring, and tailored risk management solutions.
We help you align with MOD standards, such as Cyber Essentials and DEFCON regulations, by offering automated security assessments, supply chain risk analysis, and secure data management tools.
Align yourself with the new procurement rules
The Procurement Act 2023 will impact defence suppliers in several ways. There will be a more flexible and tailored procurement process, which allows for greater innovation and adaptability in defence projects. There will be an enhanced focus on national security and resilience. Also, social value and sustainability will be more in focus.
Defence suppliers and businesses need to take proactive steps to align with new procurement rules. DCI can help you align with the new Act and ensure you don’t fall behind on the new requirements and processes. DCI can also play a key role in helping you win more government tenders and contracts.
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DCI’s premium procurement intelligence offers tailored contract alerts and early market engagement opportunities with key MOD buyers. Make sure you are aware of and informed about upcoming MOD Procurement opportunities & frameworks.
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