Brexit has had a significant impact on UK procurement organisations operating in regulated settings, and procurement professionals must take specific actions to navigate this transition successfully.
One of the most critical steps is to review and update procurement policies and practices to align with the new UK legislation. The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020 replace the EU procurement directives that previously governed public procurement processes in the UK. The new regulations aim to provide a simplified and streamlined approach to public procurement while ensuring that procurement remains transparent and fair. Procurement professionals should ensure that they adhere to the specific procedures and requirements outlined in the new regulations to remain compliant.
One key change resulting from Brexit is the introduction of UK-specific procurement thresholds. Procurement professionals must understand these thresholds, which are generally lower than previous EU thresholds, to determine when to initiate procurement processes. Procurement professionals should also invest in training and development to equip staff with the skills and knowledge necessary to manage procurement processes in accordance with the new legislation. This could include training on pre-market engagement, a new requirement of the regulations that involves engaging with potential suppliers before initiating procurement processes.
Procurement professionals must also explore new procurement practices and opportunities beyond the EU. With uncertainty around the availability of EU-based suppliers, procurement professionals in regulated settings may need to look beyond the EU to identify new suppliers and opportunities. This could involve developing new relationships with suppliers in other parts of the world or adopting more flexible procurement practices tailored to specific needs and requirements.
To ensure transparency and fairness in procurement processes, procurement professionals must publish a notice of procurement, inviting potential suppliers to submit their interest. They must also provide suppliers with equal opportunities to bid for contracts and evaluate bids based on objective criteria. Procurement professionals should also explore opportunities to increase collaboration with suppliers to achieve greater efficiencies and reduce costs.
In addition to the actions above, procurement professionals must also consider the potential impact of Brexit on contract management. Existing contracts that were awarded under EU procurement directives may need to be reviewed to ensure that they remain compliant with the new UK legislation. Procurement professionals should also consider whether any contract changes may be necessary to reflect changes in supply chain arrangements, legal and regulatory requirements, or other factors that could impact contract performance.
Finally, procurement professionals should stay up-to-date with the latest developments in UK procurement legislation and regulations. The new UK legislation may continue to evolve, and procurement professionals must remain aware of any changes that may impact their procurement practices. Professional procurement organisations, such as the Chartered Institute of Procurement and Supply (CIPS), can provide support and guidance on best practices and developments in UK procurement legislation.
In conclusion, navigating the transition from the EU procurement directives to the new UK legislation as a result of Brexit requires procurement professionals in regulated settings to take specific actions. By reviewing and updating procurement policies and practices, investing in training and development, exploring new procurement practices and opportunities, ensuring transparency and fairness in procurement processes, considering contract management, and staying up-to-date with the latest developments in UK procurement legislation, procurement professionals can continue to deliver value for money and support the delivery of high-quality services.
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