A Guide to the Procurement Act 2023 for Transport Operators

Public transport operators, local authorities and suppliers are entering a period of significant change, and many are unsure how to adapt. This guide has been created to help you cut through the complexity of the Procurement Act 2023 overview, understand what the new rules mean in practice, and give you confidence that you can meet your obligations without disruption. Whether you manage contracted bus services, support rail supply chains, deliver community transport or provide specialist mobility solutions, this article provides the clarity you need to move forward with certainty. By the end, you will know exactly how to overcome key transport procurement challenges, align with the new regulations and operate securely under the updated framework.

I know from experience that one of the biggest concerns for operators and suppliers is navigating compliance with public procurement rules while still running day-to-day services. Many are worried about misinterpreting requirements, missing new transparency duties or failing to document decisions correctly. The fear of making the wrong call—particularly under a regime with increased scrutiny—often leads to hesitation, inefficiency or operational risk. With the Act introducing new terminology, procedures and reporting expectations, the risk of non-compliance penalties is understandably front of mind. This guide exists to remove that pressure by translating the complexity into clear, actionable guidance.

At Surbon Consulting, we specialise in transport procurement, bid strategy and compliance. supporting operators, local authorities and suppliers across the UK to design, manage and deliver procurements that are both compliant and commercially sound. Our practical insight into transport operator responsibilities, contract management and bid readiness ensures that the advice we provide is grounded in real-world delivery, not theory.

Finally, through over 13 years of working closely with transport clients, we understand the specific challenges —tight budgets, performance pressures, local political expectations and increased scrutiny over social value and sustainability. This guide reflects not only regulatory expertise but practicable advice to get bids won.

What is the Procurement Act 2023?

The Procurement Act 2023 is a sizeable piece of legislation in the UK, ushering in comprehensive public procurement reform UK by replacing multiple legacy regimes with a unified framework and is the cumulation of years of work. At its core, the Act sets out new centralised procurement rules that contracting authorities must follow, thereby streamlining previously fragmented legal landscapes. Under this new legal framework for contracting authorities, traditional regulation through separate instruments is replaced with a coherent regime that emphasises value, transparency, and competition. The legislation also strengthens oversight of the public sector supply chain regulation, ensuring downstream obligations and supplier accountability are explicitly embedded within public-contracting ecosystems. 

The Procurement Act aligns with guidance issued by the Cabinet Office, providing clear reference points for procurement teams to adopt these new principles and operate within the evolving environment of public procurement. In short, for buyers and suppliers alike, the Procurement Act 2023 signals a major shift – moving away from EU focussed system on an outcomes-driven system tailored to UK priorities.

Why was the act introduced?

The drive behind the Procurement Act 2023 emerged in the aftermath of Brexit procurement reforms, where the UK government sought to liberate public purchasing from legacy EU-centric regulation and deliver a more agile system. 

One of the key objectives was the simplification of procurement processes, enabling contracting authorities and suppliers to engage in more efficient, less burdensome tendering. In tandem, the policy sought to foster increased competition in public contracts, opening up opportunities for a broader range of firms and supporting the UK government’s ambition to boost innovation and access. 

From a spending perspective, the Act is intended to enhance public spending efficiency, ensuring taxpayers’ money is used to deliver maximum benefit rather than compliance-heavy process. At the same time, one of the guiding themes has been reducing red tape in procurement, acknowledging that overly complex procedures have hampered supplier engagement and reduced opportunities for SMEs. Together, these drivers shaped the rationale for the Act’s introduction and underpin its reforms

When does the Procurement Act 2023 come into force?

The commencement timeline for the Procurement Act 2023 is a critical consideration for suppliers and contracting authorities alike. While the Act received royal assent and is on the statute book, the actual go-live timeline has been subject to revision. 

Originally, full implementation took effect from October 2024 implementation, but subsequent government announcements delayed the effective date to 24 February 2025. 

 The transition period therefore provides a preparation period for suppliers to align systems, policies and bids to the new regime of procurement. During this transition to the new procurement rules, both buyers and bidders must take steps to update their workflows, training and documentation. 

The Procurement Act 2023 commencement date which is 1^st October 2025 marks the point from the new rules apply. 

Procurement Act 2023 summary for transport operators and suppliers

For transport operators and suppliers active in the public sector, the Procurement Act 2023 brings meaningful changes across the full procurement lifecycle changes — from early market engagement, tendering, award and onward into contract management. In terms of transport supplier eligibility, smaller firms, new entrants and SME providers in rail, bus and other transport modes will benefit from a more accessible procurement environment with fewer procedural barriers. 

All UK public sector authorities must now adopt enhanced contracting authority obligations, including transparency duties, social value criteria and performance monitoring. Further, the legislation emphasises procurement risk management more explicitly: supply chain resilience, non-compliance, and data transparency are now front and centre in the regulatory mindset. 

For public transport contracts, these reforms mean that operators must adapt their bid strategies to reflect broader outcomes — social, environmental and economic — rather than simply price. 

The move to bus franchising by a number of authorities e.g. Liverpool, West Yorkshire, South Yorkshire means that UK bus sector is therefore both an exemplar and early adopter of the new Procurement Act 2023.

Consolidation of previous procurement regimes

One of the defining features of the Procurement Act is its consolidation of key procurement regimes: the Public Contracts Regulations 2015, Utilities Contracts Regulations and the Concession Contracts Regulations are folded into one unified public-procurement framework.  This means that previously segregated rules for utilities, defence and security procurement are now brought under one umbrella, making the regime more coherent and manageable. 

The longstanding sector-specific carve-outs for defence and security procurement still remain, but the overarching architecture is now simplified for users and suppliers alike. The benefit is a unified legal procurement framework which harmonises terminology, procedural steps and regulatory obligations, reducing duplication and confusion. For those involved in tendering and supply in fields such as transport and utilities, this change simplifies how compliance is managed and how procurement policy is implemented.

(H3) New principles and objectives: Transparency, value for money, and social value

Under the Procurement Act 2023, public sector authorities must place increased emphasis on public sector accountability, embedding obligations around transparency and oversight at every procurement stage. The shift from “Most Economically Advantageous Tender” (MEAT) to “Most Advantageous Tender” (MAT) empowers authorities to evaluate contracts on more than cost, aligning with the principle of value for money assessments. 

Social value is no longer just an optional consideration: the Act requires the inclusion of social value priorities, where procurement decisions reflect broader social, economic and environmental objectives at a minimum of 10%. 

Moreover, enhanced procurement transparency requirements mean that from planning through award and delivery, information must be published and accessible — fostering trust, competition and fairness. These new principles make it clear that the public sector is expected to deliver not just a service or product, but genuine public benefit.

Procurement Act 2023 social value requirements

Within that broader principle lies specific obligations around levelling up, local employment opportunities, environmental sustainability, and community engagement in contracts. 

Public sector authorities must carry out a social impact assessment as part of their 

procurement lifecycle, ensuring that contracts deliver measurable outcomes within local communities. Suppliers bidding for major transport or infrastructure contracts, for example, must embed commitments to local jobs, apprenticeships or carbon savings. These requirements reflect the UK government’s drive (under both Conservative and Labour) to ensure public purchasing decisions lead to tangible local and social benefit, rather than purely financial savings.

Introduction of new procurement procedures

To support a more flexible and effective system, the Act introduces a suite of updated procurement procedures as summarised in the table below.

All of these procedures are designed to UK public sector authorities and suppliers greater agility to adapt procurement strategies to market realities, drive innovation and respond to evolving needs. For example, the innovation partnership allows longer-term collaboration with suppliers to develop novel solutions — particularly relevant in sectors such as transport infrastructure and mobility. The inclusion of direct award rules in specific circumstances (such as for pressing needs or small contract values) provides clarity and legal certainty where speed is required.

Increased transparency and reporting requirements

Under the Procurement Act 2023, public sector authorities are required to publish contract award notices, tender pipelines and procurement dashboards showing upcoming opportunities via a central digital platform. 

Suppliers must adhere to real-time reporting obligations and disclose performance metrics disclosure for major contracts. The new regime mandates authorities to set and monitor KPIs, publish reviews and ensure visibility of supply-chain delivery outcomes. This heightened transparency reinforces trust and ensures that both buyers and suppliers are held to account for performance and delivery. However, I would have to say after many years working in public procurement this poses a challenge for contract management which does not often receive the same scrutiny as public procurement. 

Duty to consider SMEs and barriers to entry

The Procurement Act 2023 prioritises SME participation by putting in place a duty on UK public sector authorities to remove barrier reduction in procurement and simplify bidding processes for smaller firms. The Procurement Act 2023 addresses SME participation, expands supply chain access, and requires authorities to consider how procurement design may inadvertently exclude emerging or smaller firms. The intent is to deliver inclusive procurement, where local and smaller suppliers have genuine opportunities rather than being locked out by complex procedures or large-scale procurement dominated by major players.

Other provisions

Among the additional reforms are mandatory 30-day payment terms for public sector supply chains, emphasising supplier cash flow and putting in place payment monitoring frameworks to track compliance. The Act also strengthens mechanisms for termination and renewal guidelines, defines thresholds for substantial vs non-substantial changes, and requires contract change notices whenever amendments occur over the life of a contract. This ensures greater transparency in modification thresholds and greater clarity in how authorities manage contract changes and end-of-term transitions.

Key implications for transport authorities and operators

For UK based transport authorities and operators, the Procurement Act 2023 triggers the need to review and adapt their tendering and contract-management frameworks. I would suggest that UK procurement teams will need to revisit their tender process adaptation, ensuring bid documentation incorporates social-value, transparency and new procedural routes. Bid team members require compliance training, covering the new obligations around transparency, SME access and digital reporting. Bid strategies need to evolve to account for broader evaluation criteria (e.g., sustainability, innovation) beyond cost but crucially in a cost-effective manner. The holy grail of bidding! 

In addition, reengineering of contract-management systems will be needed to embed real-time monitoring, performance tracking and supply-chain visibility. 

Finally, an internal procurement process audit is recommended so that existing contracts, frameworks and pipelines align with the new Procurement Act’s requirements and avoid challenge or non-compliance risk.

Opportunities for SMEs and new entrants in transport

The Procurement Act 2023 opens notable windows for accessible transport tenders that previously might have been inaccessible to smaller players. With simplified qualification, procurement design is required to eliminate unnecessary gating criteria, giving SMEs a clearer path to bid.

Public sector authorities are now able to apply local supplier preference, enabling regionally based transport providers to compete. The move towards open competition breaks down the dominance of long-standing suppliers and encourages new entrants to engage. By addressing reduced procurement barriers, the Procurement Act enables a more diverse supplier base in transport; this is especially relevant for niche providers, start-ups and local firms with agile models.

Impact on public transport bids and contract management

Impact on public transport bids and contract management

Transport sector bidders should anticipate enhanced contract lifecycle visibility, meaning that every phase of contract—from planning to delivery and evaluation—will be subject to greater openness and transparency.

I have seen that there has been a shift in UK bid evaluation criteria has shifted, emphasising social value, sustainability and supplier diversity alongside price. Transport contracts are increasingly moving toward performance-based contracts, where delivery outcomes (e.g., passenger numbers, carbon reduction) matter. Suppliers will need to meet improved reporting expectations for contract metrics and supply-chain performance. Ultimately, this change supports greater public sector accountability, as transport authorities must publicly demonstrate how their contracts deliver value to communities and the environment with intense scrutiny over the success or otherwise of bus franchising.

Sustainability and social value in transport procurement

The UK Procurement Act emphasises low-emission transport solutions, mandating that bids address green public procurement requirements and deliver measurable supply chain sustainability outcomes.  P

Public transport providers must align with broader climate change targets and embed a social value procurement strategy – for instance by specifying local employment, reduced emissions, community access and inclusive supply-chains in their tenders to the supply chain and offering reports normally on a monthly for business KPIs and quarterly for social value KPIs.

Practical advice for transport companies and bidders under the Procurement Act 2023

My 5 suggested practical advice are: 

1. Bid readiness assessment— reviewing current capabilities, identifying gaps in compliance, social-value metrics and digital reporting. 
2. Develop a coherent procurement strategy planning document aligned with the Act’s principles, identifying opportunities, risks and resource requirements. 
3. Registering on the appropriate supplier portals (supplier registration) and preparing for the new regime early will give firms competitive advantage. 
4. Undertake a legal compliance audit so that contracts, frameworks and processes meet the new rules. 
5. Finally, adopt market engagement tactics – early engagement with contracting authorities, participating in pre-tender events and peer networking to understand evolving requirements.

Tips for navigating the new procurement procedures

Familiarisation with the new procedures is important for your procurement process and spend time understanding the competitive flexible procedure including changes to open procurement and direct award rules. 

There are opportunities to engage early with contracting authority to feedback considerations and shape the tender.  I would suggest reviewing and including feedback from earlier bids, build modular frameworks and consider framework agreements for flexibility.

Strategies to maximise social value and sustainability in bids

Clear alignment social-value commitments to local job creation (e.g., apprenticeships), include carbon reduction plans, engage diverse suppliers, invest in community investment and set measurable social-value metrics. Doing so, can demonstrate how the bid solution benefits not just the contract buyer and adds quantifiable value.

Staying compliant with prompt payment and contract management rules

The Procurement Act 2023 has a considerable focus on ensuring prompt payment and contract rules, both of which I have found can be neglected in day-to-day business.  Steps to ensure compliance are below: 

1. With advances in automation set up automation where possible and set up systems for tracking compliance tracking for both financial report and allow support for contract performance reviews, 
2. Inform and train procurement and delivery staff and build real-time dashboards to meet real-time payment reporting requirements. 

Ensuring prompt payment (30-day terms) and robust contract-change control will protect your risk exposure and reputation, but this can often require a mindset shift from employees which can take time and needs reinforcement. 

Common challenges and how to address them

Understanding the new terminology introduced by the Act—including concepts such as MAT vs. MEAT, preliminary market engagement, and the requirements of the Single Digital Platform—may initially create uncertainty for teams. Investing in structured training, updated guidance materials, and internal knowledge-sharing sessions can close this gap quickly and ensure consistent interpretation across your organisation.

System transition challenges are also likely, particularly where legacy IT systems, data-migration complexities, or unfamiliar procurement portals slow operational readiness. A phased, well-planned transition programme—supported by clear ownership, timelines, and testing—will minimise disruption and reduce the risk of non-compliance.

Strengthening supplier onboarding processes, especially for SMEs within your supply chain, is essential to maintaining resilience and ensuring inclusive access to new tendering opportunities. Providing clear onboarding guidance, templates, and points of contact helps smaller organisations meet the new requirements efficiently.

To ensure bid evaluation clarity, organisations should map scoring criteria early, align internal decision-making with the Act’s principles, and rehearse bid responses through mock evaluations. This improves both bidder confidence and evaluation consistency.

Finally, investing in capacity building for SMEs—through mentoring programmes, collaborative consortium models, and joint-venture opportunities—can help to broaden your supply ecosystem and enhance the quality, innovation and competitiveness of future bids.

Key takeaways for the transport sector

The central message for the transport sector is to embrace transparency, revisit and overhaul procurement policies in light of the new rules, review procurement policies and adapt them accordingly. Invest in compliance systems, upgrade internal processes and embed data-driven contract monitoring.  At the same time, enhance bid strategies, move beyond price to social and environmental value, and leverage SME support to build more competitive, inclusive bids.

Next steps for bidders and operators

I appreciate it is easier said than done to do this but in terms of next steps my suggestions are below: 

1. Start by scheduling training and workshops for procurement teams and bid-managers. 
2. Conduct a risk and opportunity assessments, engage proactively with contracting authorities and attend market-engagement forums. 
3. Update internal policies for supplier management and digital reporting
4. Work to develop competitive positioning by sharpening your value proposition, social-value commitments and sustainability credentials.

Book a free 30 minute consultation with Surbon Consulting to learn how we can support you through this process and help you build your next winning bid.

Where to find official guidance and updates

Please see here for a list of relevant resources:

• Cabinet Office procurement portal: Supplier Registration Service / public procurement guidance 
• Transforming Public Procurement website: GOV.UK collection – Transforming Public Procurement GOV.UK
• Procurement Policy Notes: GOV.UK collection – Procurement policy notes GOV.UK
• Professional procurement bodies / local authority bulletin updates: Local Government Association – Procurement & supply chain bulletin

More resources and toolkits

For more information check out our Downloads section with free tools & resources for transport and infrastructure professionals.