Procurement Guide: Compliance and Value for Money

Public Sector Procurement Compliance in 2025

This guide provides an overview and actionable steps for public sector buyers to ensure procurement compliance and achieve value for money, aligning with key regulations and guidance:

• Managing Public Money (May 2023)
• The Green Book and its Supplementary Guidance on Value for Money
• Public Contracts Regulations (PCR) 2015
• The Procurement Act 2023
• NHS Provider Selection Regime (for NHS England).

Key Legislation in Procurement: Managing Public Money, Green Book, The Procurement Act and NHS PSR

The key with all of this legislation is that value for money is achieved and that the right decisions are made. This should be done in a way which is open, fair and transparent. Those spending public money need to be accountable. It is these guiding principles which are key.

Managing Public Money:

• Ensure regularity, propriety, value for money, and feasibility in all procurement activities
• Use legal and parliamentary authorisation for spending
• Maintain detailed records for accountability

The Green Book and Value for Money (VfM):

• Balance monetised and non-monetised factors in options appraisal
• Ensure chosen options meet SMART objectives
• Use Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA) for economic appraisals
• Assess options against critical success factors: strategic fit, VfM, supplier capacity, affordability, and achievability
• Integrate risk costs and conduct sensitivity analyses

PCR 2015 and The Procurement Act 2023:

• The Procurement Act has many changes to manage
• Follow competitive tendering procedures for contracts above thresholds
• Publish contract notices on Find a Tender service (FTS) or Contracts Finder
• Comply with exclusion grounds and selection criteria
• Publish KPIs for contracts over £5 million and report annually (Procurement Act)

NHS Provider Selection Regime (PSR):

• Giving additional flexibility for health care services in England with PSR
• Ensure compliance with key principles: transparency, proportionality, non-discrimination
• Publish contract opportunities on the FTS and Contracts Finder
• Maintain auditable documentation of decision-making process

Procurement Act 2023: A New Chapter in Public Procurement

As noted above, the Procurement Act offers a more streamlined and flexible approach to public procurement, replacing the existing EU-derived regulations.

Key Features of the Procurement Act

The Act applies to contracting authorities across England, Wales, Northern Ireland, and certain reserved functions in Scotland. It includes exemptions for devolved procurements and specific sectors like defence and healthcare, but its overarching aim is consistent: to deliver better outcomes for taxpayers and public service users. Key features include:

• Simplified Framework - Replaces four prior regulations with a single cohesive structure, encouraging flexibility and innovation
• Transparency Requirements - Mandates clear publication of procurement decisions and key performance indicators for contracts over £5 million
• SME Support - Reduces barriers with proportional requirements and realistic timelines.
• Supplier Engagement - Requires contracting authorities with an annual spend exceeding £100 million to publish procurement pipelines and encourages early market engagement
• Conflict of Interest Management - Introduces stronger mechanisms to assess and mitigate conflicts at all stages of procurement

Preparing for Implementation

To align with the Act’s provisions, contracting authorities should:

1. Update governance structures, e-tendering platforms, and contract management systems to reflect the new requirements
2. Engage cross-departmental teams early to ensure organisational goals align with procurement strategies
3. Access available e-learning modules, advanced training sessions, and fact sheets on gov.uk
4. Publish mandatory notices, including contract award details and redacted contract modifications
5. Streamline processes to ensure accessibility and proportionality for smaller suppliers

Procurement Tools for Compliance

Procurement Process Checklist

Planning:

• Define requirements based on stakeholder input and intended outcomes
• Align spending with approved budgets and Treasury rules
• Engage governance bodies early for strategic alignment

Developing a Procurement Strategy:

• Design open, fair, and transparent competition processes
• Develop objective evaluation criteria aligned with VfM principles
• Identify and quantify financial and reputational risks

Tendering and Evaluation:

• Advertise opportunities transparently on required platforms
• Apply pre-defined criteria consistently and document decisions
• Obtain necessary approvals for novel or high-value procurements

Contract Award and Management:

• Confirm awards meet all regulatory and VfM standards
• Monitor supplier performance against KPIs and contractual obligations
• Implement robust controls to prevent fraud and manage risks

Embedding Value for Money

• Use the Options Framework to filter and refine options
• Incorporate non-monetised benefits in decision-making
• Conduct workshops to ensure alignment with SMART objectives
• Maintain a comprehensive risk register and integrate risk costs into appraisals
• Encourage iterative appraisals to adapt to new information or strategic changes

Practical Examples

• Managing supplier performance through KPIs for IT services contracts
• Evaluating risks in long-term infrastructure projects
• Upgrading transportation links while balancing risks and benefits

How Thornton & Lowe Supports Public Sector Buyers

Ensuring Procurement Compliance & Value for Money

Thornton & Lowe ensures your procurement practices comply with the detailed provisions of "Managing Public Money". We help develop procurement policies that align with legal and parliamentary requirements and write procurement strategies that optimise cost efficiency and sustainability.

Using tools like the Green Book, we help assess and compare options to achieve maximum public benefit.

We offer outsourced procurement management tailored for smaller organisations, ensuring compliance without the need for in-house expertise. As well as ongoing contract management services to track performance and ensure objectives are met.

From drafting specifications and tender packs to evaluating bids, we ensure transparency, fairness, and compliance with public procurement rules. We offer tailored solutions to ensure compliance, improve supplier engagement, and drive value across your operations. Our support includes:

• Procurement Compliance Reviews: We provide detailed reviews of your policies, processes, and governance structures to ensure alignment with the new Act, identifying gaps and recommending practical solutions
• Training and Development: Our bespoke training programs equip your teams with the knowledge and skills needed to implement the Act’s flexibilities, manage conflicts of interest, and leverage transparency requirements effectively
• Outsourced Procurement Services: From managing procurement processes to overseeing contract delivery, we act as an extension of your team, delivering expert guidance and hands-on support
• Supplier Engagement and Development: We help develop stronger relationships with suppliers, facilitating early engagement and shaping market strategies to improve competition, innovation, and social value outcomes. Read more on our supplier development.

By partnering with Thornton & Lowe, contracting authorities can confidently navigate the complexities of the Procurement Act, ensuring compliance while maximising the benefits for their organisation and the communities they serve.

You may also be interested in our specific procurement consultancy relating to:

• Charities
• Schools & Academies
• Housing Associations