Guide to Tender Notices and Competitive Tendering Under the Procurement Act 2023

Guide to Tender Notices and Competitive Tendering Under the Procurement Act 2023

Changes to Tender Notices

As a result of the Procurement Act 2023, tender notices will be changing. The key notice types are:

Preliminary Market Engagement (PME) Notice (UK2) – Used to signal an upcoming procurement and gather early market feedback. If not used, buyers need a clear justification.

Tender Notice (UK4) – Required for both high and low-value tenders to initiate a procurement process.

Transparency Notices – Various notices to ensure compliance, including:

• Planned Procurement Notice (UK1) – Optional notice used to signal upcoming tenders, helping suppliers prepare in advance.
• Supply Chain Planning Notice – Required for authorities with annual spending over £100m, outlining procurement strategies for the next 18 months and covering purchases over £2m.
• Market Research and Supplier Engagement Notice – Allows suppliers to participate in pre-tender discussions, shaping procurement requirements and reducing the formal tender period to 10 days.
• Contract Award Notice (UK6) – Must be published within 30 days of awarding a contract.
• Contract Performance Notice (UK7) – Required for contracts over £5m, reporting against Key Performance Indicators (KPIs) annually.
• Pipeline Notice (UK8) – Authorities with annual spend over £100m must publish an 18-month procurement pipeline every April for contracts over £2m.
• Contract Termination Notice (UK9) – Must be published within 30 days if a contract is terminated.
• Payments Compliance Notice (UK10) – Authorities must confirm compliance with 30-day payment rules.
• Dynamic Market Entry Notices – Provide suppliers with details on applying for new trading environments, including qualification criteria, payment structures, and specifications.
• Cancelled Procurement Alerts – Issued when authorities decide to abandon a tender process.

All notices will be published on the Central Digital Platform, making procurement more transparent and accessible.

Competitive Tendering Procedures

Under the Procurement Act 2023, there are two key competitive procedures:

1. Open Procedure

What it is: A single-stage process where all interested suppliers submit tenders.

How it works:

• Any supplier can submit a bid.
• No opportunity for shortlisting or pre-qualification.
• Ideal when a clear specification allows all suppliers to submit fully formed bids.
• Begins with a Tender Notice (UK4), inviting all interested suppliers to submit tenders.

Timeframe:

• Minimum 25 days for submission.
• Can be reduced in specific circumstances (e.g., urgent requirements).

Best used for: Straightforward procurements where pre-qualification is unnecessary.

2. Competitive Flexible Procedure

What it is: A multi-stage process allowing buyers flexibility in shortlisting, negotiations, and supplier interactions.

How it works:

• Buyers can define their own stages.
• Can include a participation stage (previously Standard Selection Questionnaire - SQ).
• Allows for site visits, presentations, and negotiations.
• Can begin with a Tender Notice (UK4), either inviting suppliers to request participation or submit their first/only tender.
• Provides flexibility to engage in dialogue, negotiation, and supplier assessments through audits, site visits, or demonstrations.
• Intermittent tender assessments may be used to eliminate suppliers failing to meet criteria before later stages.

Timeframe:

• Participation stage: 25 days (but can be reduced to 10 days in urgent cases or if a PME notice has been used).
• Further stages depend on the design of the process, with minimum tendering periods typically 25 days, though this can be reduced under certain conditions.

Best used for: More complex procurements where shortlisting or further engagement is needed.

Frameworks and Dynamic Markets

• Open Frameworks: Authorities must reopen frameworks to new suppliers at least once within 3 years, and again within 5 years. Maximum duration: 8 years.
• Dynamic Markets (DM): Replaces Dynamic Purchasing Systems (DPS). Suppliers can apply at any time, but authorities must publish a tender notice when running competitions.
• Dynamic Market Launch Confirmations: Confirmations when a dynamic market is operational, listing approved suppliers, trading parameters, and access requirements.

Choosing the Right Procedure

For buyers used to using an SQ, the Competitive Flexible Procedure is the better option. Using the UK4 Notice, buyers can choose whether to include a participation stage to shortlist suppliers. This provides more control and allows for:

• Site visits
• Presentations
• Negotiations

If time is not a constraint, best practice suggests issuing a PME Notice (UK2) first to test the market before publishing the UK4 Notice.

Key Points

• The Open Procedure does not allow shortlisting or pre-qualification.
• The Competitive Flexible Procedure offers greater flexibility and is more suited for complex procurements requiring supplier interaction.
• A PME Notice (UK2) can help justify reduced timeframes and improve the procurement process.
• Contracting authorities can limit the number of suppliers at the participation stage based on set conditions and criteria.
• New transparency requirements mean authorities must provide full feedback, including marks awarded and reasoning.
• Supplier Registration: All suppliers must register on the Central Digital Platform to participate in procurement.
• Debarment List: A central exclusion list of suppliers who meet mandatory or discretionary exclusion grounds will be maintained.

Thornton & Lowe Support

At Thornton & Lowe, we provide expert guidance to help businesses navigate the evolving procurement landscape. Our services include:

• Procurement Consultancy – We help suppliers and contracting authorities understand new regulations, ensuring compliance and maximising opportunities.
• Supply Chain Engagement & Development – Supporting businesses in building effective partnerships and understanding procurement pipelines.
• Preliminary Market Engagement (PME) – Helping suppliers engage early in the tendering process, influencing procurement decisions and improving bid readiness.
• Tender Writing & Training – Providing professional bid writing services, workshops, and training sessions to enhance your success rate in securing public contracts.

Whether you need tailored bid support or strategic procurement advice, our team is here to assist. Contact us today to stay ahead in the new public procurement landscape.

Supplier Considerations

• Lotting Requirement: Authorities must assess whether contracts can be split into smaller lots and justify if they do not.
• Barriers for SMEs: Authorities must assess and remove unnecessary barriers for SMEs.
• Social Value and Sustainability: Contracting authorities will evaluate innovation, environmental impact, and social value contributions in tender assessments.
• Prompt Payment Focus: Authorities must confirm compliance with 30-day payment rules, helping SMEs maintain cash flow.
• Contract Performance Tracking: Regular assessment against KPIs is required, with potential public reporting on supplier performance.
• Post-Contract Performance Monitoring: Contracts over £5m require yearly reporting against at least three KPIs.
• Managing Contract Adjustments: Any contract changes due to shifting requirements must be documented to maintain transparency.
• Tracking Payment Practices: Payment monitoring occurs twice yearly, ensuring authorities adhere to 30-day payment terms.