The new Procurement Act represents a significant shift in public procurement law, bringing comprehensive changes that impact all aspects of procurement, from governance to processes and IT systems. This legislation introduces fundamental changes that will require new information systems and a transformation in ways of working across entire organisations, not just within the Procurement Function or Legal Department.
Key Changes and Opportunities
The Procurement Act presents a unique opportunity for better buying practices, emphasising that procurement is not solely about cost control but also about sound governance and strategic approaches that can deliver substantial benefits. The key changes include:
- Scope and Scale: The new Act brings comprehensive changes that impact all aspects of procurement, from governance to processes and IT systems.
- Opportunities: The legislation presents a unique opportunity for better buying practices, emphasising that procurement is not solely about cost control but also about sound governance and strategic approaches that can deliver substantial benefits.
Impact on Your Organisation
The Procurement Act introduces a more pragmatic and flexible regime which should allow organisations to be more commercial and align the tender process with their wider objectives. However, the shift in focus to the whole contract life cycle, contract management, monitoring and notices will increase both the administrative and management burden.
The new regime sees an increased focus on accountability and transparency, allowing for greater scrutiny over how public money is spent. The increased public scrutiny should be on an organisation’s radar to protect their reputation.
To comply with the new requirements, organisations will need to update their processes and IT systems, invest in skilled staff who understand the new procurement landscape, and enhance their governance structures. TIAA can support organisations in navigating these significant changes and leveraging the opportunities they present.
How TIAA Can Help
TIAA offers a range of services to help organisations ensure compliance with the Procurement Act:
- Governance: TIAA can help organisations enhance their governance structures to comply with the new requirements.
- Processes and IT Systems: TIAA can assist in updating processes and IT systems to align with the new legislation.
- Skilled Staff: TIAA can provide support to ensure that staff are well-equipped to navigate the new procurement landscape.
Further Support
If you would like personalised advice to improve your governance and the effectiveness of your processes and controls around procurement, please do not hesitate to contact us. We are here to support you in making the most of these changes and ensuring your organisation is well-prepared.