The Procurement Act 2023, which came into effect on 24 February 2025, has introduced a transformative approach to public sector procurement in the UK. The Act has created new opportunities for SMEs to thrive in an increasingly competitive landscape by prioritising simplified procurement processes, enhanced transparency, and greater social value integration.
For SMEs like Auctus Management Group (AMG), these changes present an unprecedented opportunity to expand their role in the infrastructure sector. SMEs can be essential partners in public procurement projects by focusing on social value, sustainability, and collaboration.
How the Procurement Act 2023 Benefits SMEs
Simplified Access to Public Contracts
One of the most significant barriers for SMEs in public procurement has been the complexity of bidding processes. The Procurement Act 2023 has tackled this issue by:
- Reducing administrative burdens through standardised procurement documents.
- Introducing Dynamic Purchasing Systems (DPS), allowing SMEs to join frameworks at any time rather than waiting for periodic reopenings.
- Ensuring proportionality in contract requirements, preventing smaller businesses from being excluded by unrealistic turnover thresholds.
These measures have been introduced to ensure that SMEs like AMG have a fairer chance to compete for contracts that larger corporations previously dominated.
Increased Importance of Social Value in Procurement
The Act requires that public sector contracts consider social value, shifting from a purely cost-driven evaluation to a Most Advantageous Tender (MAT) approach. This means that contracts are awarded based on a combination of:
- Environmental sustainability (e.g., reducing carbon emissions, circular economy initiatives).
- Community impact (e.g., local job creation, apprenticeship programmes, skills development).
- Diversity and inclusion (e.g., supporting underrepresented groups, fair wages, ethical supply chains).
For SMEs like AMG, this presents an opportunity to differentiate themselves by showcasing their commitment to local economic growth, workforce development, and sustainability.
Greater SME Participation in Public Procurement
The Act includes specific provisions designed to increase SME engagement, including:
- Reserving certain contracts for SMEs, particularly in industries like construction and IT services.
- Breaking down large contracts into smaller, more manageable lots, making it easier for SMEs to compete.
- Encouraging joint ventures where SMEs can collaborate to bid on larger contracts.
AMG has already capitalised on these opportunities by forming strategic partnerships and strengthening its bidding capabilities to secure high-value contracts.
The Role of the Find a Tender Service (FTS)
A key enabler of SME participation in public procurement is the Find a Tender Service (FTS), which replaced the Tenders Electronic Daily (TED) portal. FTS serves as the UK’s central procurement hub, allowing SMEs to:
- Search and track public contract opportunities across various sectors.
- Create and optimise supplier profiles to increase visibility to buyers.
- Receive real-time alerts about relevant tenders.
AMG has been actively navigating the FTS platform, ensuring they can monitor new opportunities, and optimise their bidding strategies.
How SMEs Can Capitalise on the New Procurement Landscape
Leveraging Social Value as a Competitive Advantage
SMEs that align their business strategies with social value goals will have a distinct edge in securing public contracts. Key actions include:
- Developing apprenticeship and skills training programmes to demonstrate investment in workforce development.
- Implementing sustainability initiatives such as carbon reduction policies and ethical sourcing practices.
- Engaging with local communities and charities to enhance social impact.
Forming Strategic Collaborations
The Act encourages SMEs to collaborate on bids through joint ventures, enabling them to:
- Compete for larger contracts that would be otherwise out of reach.
- Combine expertise to offer more comprehensive service packages.
- Improve overall bidding strength through shared resources and knowledge.
Optimising Digital Presence on FTS
To maximise success, SMEs should fully utilise the Find a Tender Service (FTS) by:
- Keeping supplier profiles up to date with relevant certifications and case studies.
- Using industry-relevant keywords to ensure visibility in buyer searches.
- Setting up automated alerts for new procurement opportunities.
Summary
The Procurement Act 2023 has redefined how SMEs engage with public procurement, offering fairer access to contracts and emphasising social value more. For companies like Auctus Management Group, these reforms provide an invaluable opportunity to drive business growth, strengthen local economies, and contribute to a more sustainable future.
By embracing social value principles, forming strategic partnerships, and leveraging digital tools like FTS, SMEs can position themselves as key players in public sector supply chains. Now is the time for SMEs to adapt, innovate, and take full advantage of the evolving procurement landscape to secure long-term success.
