The Procurement Act 2023, which came into effect in February 2025, is ushering in a new era of public sector procurement in the UK.

It replaces and streamlines four complex sets of regulations into a single, unified framework - marking a fundamental shift in how public organisations must approach procurement, with a strong emphasis on transparency, governance, and social value.

As NHS Trusts, councils, and other public bodies adjust to this landscape, the expectations around evidence, fairness, and auditability are rising. At the same time, procurement teams face the same old pressures: tight budgets, inflated supplier pricing, and the need to deliver more with less.

This blog explores the key challenges introduced by the new legislation and how tools like KnowledgeBus can help public sector organisations not only stay compliant but also improve procurement performance and deliver measurable value.

What's Changed Under the Procurement Act 2023?

The new Act introduces several notable changes aimed at simplifying procurement while demanding greater accountability. Some of the most impactful shifts include:

A Single, Streamlined Framework

Gone are the Public Contracts Regulations 2015 and three related frameworks. The new Act unifies procurement across public services, utilities, defence, and concessions, creating consistency and reducing red tape.

Flexible, Agile Procurement Processes

Traditional procedures (open, restricted, etc.) are replaced by more flexible contracting routes, enabling dynamic markets, simplified below-threshold notices, and faster procurement—ideal for sectors like IT where speed and agility are essential.

From MEAT to MAT: Beyond Just Cost

The shift from “most economically advantageous tender” (MEAT) to “most advantageous tender” (MAT) means authorities can—and must—consider quality, innovation, social value, and environmental impact alongside price.

Deepened Transparency Requirements

Authorities must now publish more data than ever: procurement pipelines, award rationales, contract changes, supplier performance, and payment histories must all be visible and auditable.

A Push for Social Value and SME Inclusion

Contracting authorities are required to consider “public benefit” in every decision. Frameworks should facilitate local job creation, sustainability, and support for SMEs and social enterprises, aided by new SME-friendly contract rules.

The Compliance Burden in IT Procurement

While the principles of the Act are positive, the implementation presents real operational challenges—especially in complex IT environments:

  • Opaque Supplier Pricing: Even with framework or cost-plus agreements, public sector buyers lack visibility into real trade pricing. Suppliers can inflate markup dramatically—up to 1900% in some cases.
  • Audit Pressures: Procurement teams must now evidence value-for-money and provide an auditable trail of every decision, product, and supplier interaction.
  • Inefficient Quote Checks: Manual verification of quotes and supplier claims is time-consuming and error-prone.
  • Markup Leakage: Without automated validation tools, excessive mark-ups go unnoticed, directly impacting Cost Improvement Programme (CIP) targets and public trust.

KnowledgeBus: Supporting Transparent, Compliant Public Sector Procurement

To meet the demands of the Procurement Act 2023, public sector teams need tools that automate compliance, validate pricing, and prove governance—without disrupting existing processes. That’s exactly what KnowledgeBus delivers.

How KnowledgeBus Helps:

  • Line-by-Line Margin Validation: Instantly benchmark supplier quotes against live trade pricing for 1.4M+ IT products from 3,500+ manufacturers.
  • Audit-Ready Reporting: Generate clear, exportable reports that meet audit and transparency standards.
  • Evidence Value for Money: Use real-time pricing data to prove procurement decisions were fair, justified, and cost-effective.
  • Framework & Contract Compliance: Highlights whether pricing aligns with CCS frameworks or agreed mark-up limits—even within cost-plus contracts.
  • Spend Analysis Tools: Detect hidden overcharges and identify potential savings—on average 25% across public sector.
  • No Supplier Change Needed: Use existing suppliers, but hold them accountable.

Real-World Outcomes

  • Benchmarking exercises across public sector show consistent 25% average markups, especially on routine items like cables, peripherals, and consumables.
  • One Trust discovered a 451% markup on a standard IT product—hidden until trade benchmarking exposed the discrepancy.

Smarter Procurement for a Compliant, Sustainable Future

Smarter Procurement for a Compliant, Sustainable Future

  • Use stock and price history to time purchases and avoid emergency spend.
  • Get real-time alerts on product lifecycle changes (EOL), price drops, or stock fluctuations.
  • Improve RFQ outcomes with embedded pricing intelligence—encouraging competitive quoting and fair supplier engagement.
  • Align with sustainability goals by consolidating orders, reducing waste, and optimising shipping and logistics.

Get Started with KnowledgeBus

The Procurement Act 2023 sets a new bar for public sector procurement. KnowledgeBus helps ensure your organisation meets it—with transparency, control, and measurable savings.

We're inviting public sector teams to:

  • Share a 12-month sample of IT purchases
  • Receive a no-cost Spend Analysis Report
  • Identify areas of non-compliance or savings
  • Build a CIP-aligned business case
  • Demo KnowledgeBus in action with your own data

Let's help you secure the savings, governance, and performance your procurement strategy deserves—while staying fully compliant with the UK Procurement Act 2023.