The Cabinet Office has highlighted changes in public sector procurement rules aimed at protecting against national security risks and improving the prospects of SMEs as suppliers to government.
It has made the announcement to mark the new Procurement Act being given Royal Assent.
The legislation, scheduled to come into force in October 2024, will have implications for a wide range of public procurements, including those for digital services.
A significant element of the legislation is the scope to place suppliers judged to be high risk on a public debarment list, which will prevent them from bidding for contracts on some categories of goods and services, such as those related to defence and national security. They would still be able to bid for contracts in non-sensitive areas.
Ministers will be under a duty to proactively consider companies for potential debarment investigations, which will be carried out by a new National Security Unit for Procurement.
Removing Chinese equipment
It is accompanied by a Government commitment to publish to timelines for the removal of surveillance equipment produced by companies subject to China’s National Intelligence Law from central government sensitive sites. It will also deliver an annual report to Parliament detailing progress on the commitment.
This reflects persistent concerns around the potential of equipment from Chinese suppliers to be used in undermining UK national security. The anxieties have already prompted a ban on the Tik Tok app on government devices.
Minister for the Cabinet Office Jeremy Quin said: “We have taken the long term decisions that will increase our powers to protect our security in our supply chains and procurement.
“This has included radical steps such as creating a National Security Unit for Procurement and giving ministers the power to prevent suppliers from bidding for certain products where there is a risk to national security it will deliver lasting change which protects the UK for generations to come.”
Simpler procedures
The Cabinet Office also highlighted the act’s purpose of delivering simpler and effective procurement procedures that will help SMEs wins a larger share of the annual expenditure of around £300 billion.
It places a requirement on contracting authorities to assess the particular barriers facing SMEs throughout the entire procurement lifecycle, and to consider what can be done to overcome them.
It will also be possible to exclude suppliers from bidding for contracts if they have performed badly on others and if there are grounds connected to professional misconduct or modern slavery.
In addition, contracting authorities will need to take account of national strategic priorities set out in the National Procurement Policy statement, which could include matters such as job creation, enhancing supplier resilience and fostering innovation.
Economic growth
Cabinet Office Minister Baroness Neville-Rolfe said: “These new rules will help grow the economy and deliver better and simpler public sector procurement.
“I am particularly pleased to help small and medium sized businesses secure a greater share of nearly £300 billion worth of government contracts.”
The Cabinet Office added that it will provide all public sector contracting authorities with access to a comprehensive, centrally funded learning and development package and guidance materials to help them prepare for the new regime.
