When you’re dealing with public funds, compliance is non-negotiable. But what exactly should you remain compliant with? What are the main public sector procurement regulations to consider?
It can be tough to understand the different regulations and guidelines, but we’re here to simplify this for you. At Procure Partnerships Framework, we understand the significance of compliance with procurement. We’re here to help you.
Read on for our guide to the public sector procurement regulations, including:
- The Procurement Act 2023
- Public Contracts Regulations 2015 (PCR)
- Utilities Contracts Regulations (UCR)
- Concession Contracts Regulations (CCR)
We’ll also be exploring the importance of compliance within public procurement, and how you can ensure total compliance with Procure Partnerships Framework.
Understanding the Basics
Before we delve into the specifics of each set of regulations, let’s explore what the regulations aim to do.
Public procurement regulations aim to:
- Promote competition
- Prevent corruption
- Achieve value for money in the expenditure of public funds
These regulations govern every stage of the procurement process, from planning and tendering to contract award and performance.
They ultimately set out the legal framework for procurement activities, ensuring compliance with EU and international standards.
What Are The Key Public Sector Procurement Regulations?
Here are the four key policies, directives and regulations you should consider with public procurement:
The Procurement Act 2023
Every year, the public sector spends roughly £390 billion on public procurement, including goods, works and services. This can include the likes of hospital beds, schools, and waste management.
There are over 350 different procurement regulations, but the Procurement Act 2023 aims to merge these regulations into one single set of guidelines. It will ultimately create more flexible and efficient procurement. Some benefits include:
- Taking firmer action on suppliers that are underperforming – and excluding suppliers who pose significant risks
- Promoting transparency throughout project lifecycles, ensuring public funds can be thoroughly traced
- Creating a more flexible and streamlined system that meets the public needs and remains compliant
- Making the process fairer for new entrants such as small businesses
These new regulations should take effect in October 2024, after receiving Royal Assent on 26th October 2023. They will replace The Public Contract Regulations 2015.
Public Contracts Regulations 2015 (PCR)
First of all, let’s note that these regulations are to be superseded by The Procurement Act 2023. Known as PCR15, the Public Contracts Regulations govern how public sector bodies in the UK buy goods and services. They ultimately help to ensure that public funds are being dealt with correctly – and being spent fairly.
The PCR covers a range of contract types, including:
- Framework agreements
- Public works contracts
- Public supply contracts
- Public service contracts
Some of the key principles of PCR15 include competition, non-discrimination, and equal treatment.
Utilities Contracts Regulations (UCR)
The UCR came into force in April 2016 and is a set of rules that govern the procurement of goods, services and works. It guides how public sector bodies purchase services such as energy, transport or water from private companies, ensuring fairness and transparency throughout the procurement process.
It promotes:
- Fair competition
- Transparency
- Equal treatment
It ensures companies are treated equally during the procurement process, preventing discrimination on factors such as the size or location of the company. It means companies should use fair and transparent criteria to evaluate bids from different companies, ensuring the best company for the job is chosen based on merit.
UCL 2016 provides a legal framework that can help resolve disputes throughout the process, ensuring any issues can be resolved fairly and by law.
Concession Contracts Regulations (CCR)
Around 21% of all local authorities in the UK have procured a service concession. A concession involves a contract agreement between an economic operator and a public body. They essentially oversee how the public sector purchases services from private companies.
For example, if you’re looking to build a new highway, you may need to hire a private company to build and operate this on your behalf. This is where CCR comes in.
It sets out the rules for these deals – known as concessions. CCR ultimately:
- Promotes transparency and fairness – Government bodies should announce the concession opportunity publicly to give everybody a fair chance
- Sets criteria for choosing the best company for the job – considering factors such as quality of service and price
- Balances public interest with the need for private investment – ensuring taxpayers get value for their money
The Concession Contracts Regulations ultimately promote competition and accountability, ensuring fairness throughout the public procurement process.
Why is Compliance So Important with Public Procurement?
Compliance is extremely important when dealing with public funds. Firstly, it ensures transparency and accountability. Taxpayers can have peace of mind knowing their funds are being spent correctly and fairly.
Procurement frameworks can make things fair for suppliers – these guidelines and regulations ensure fair competition and help to promote innovation. They can prevent:
- Nepotism
- Favouritism
- Unethical practices
Ultimately, compliance in public procurement can improve your reputation, prevent fines, build public trust, and boost credibility.
Non-compliance with these regulations can result in:
- Reversal of the decision by contracting body
- Damages to the business that has suffered a loss
- Potential ineffectiveness of the contract (cancelling the contract if there are issues with how it was awarded)
- A financial penalty – if your company breaks rules or acts unfairly, you may be subject to a fine
Ensure Compliance With Procure Partnerships Framework
If you’re looking for a high-quality framework to ensure total compliance, look no further than Procure Partnerships Framework.
At Procure Partnerships Framework, we are committed to supporting our clients in achieving their procurement objectives while ensuring compliance with regulations.
We carry out in-depth financial due diligence checks on all of our contractors in real time, ensuring we can consistently manage potential risks for our clients.
In addition, we performance manage our contractor partners to ensure they deliver a minimum of 12% social value added across each project to ensure we are always delivering better outcomes for our clients and their local communities.
Nathan Taylor, a proficient Project Manager at Procure Partnerships Framework, brings over four years of experience in the construction industry, where he has excelled in overseeing project teams from the tender stage to completion.
